Tonight’s Patterns
Each evening we focus on the most interesting aspects for the upcoming trading day. The comments are based on observations of the nightly updates of the Stocks/Sectors and Market Bias pages. They are provided for educational purposes only and are not intended to be direct trading advice. Also, keep in mind that these remarks are made up to 12 hours in advance of the markets opening. Therefore, overnight events may alter the outcome of these observations.
At the time this is being published, the S&P Globex Futures are trading 2.50 points higher and the Bond Market Futures are trading up 1 tick.
Brocade Communications [BRCD>BRCD], mentioned last night as a Trend Pivot Pullback and a Trend Knock Out (see archive for detailed explanation), still looks like it has the potential to resume its uptrend, especially if it can take out Monday’s pivot high (a).
Continuing on the pullback theme, two other stocks on tonight’s Pullback List look interesting to me: Interleaf [LEAF>LEAF], closed well and looks poised to rally out of a high level consolidation. I2 Technologies [ITWO>ITWO] sold off earlier today but reversed to close well. This may have knocked out the weak hands and could clear the way for the stock to trade higher.
Network Peripherals [NPIX>NPIX], mentioned last night, appears to be rallying out of a pullback.
For you breakout players, Sandisk [SNDK>SNDK], on the Above 50-DEMA-DV List, appears to be breaking out of a loosely formed inverted head and shoulders formation.
On the short side, Express Scripts [ESRX>ESRX], mentioned last night, appears to have resumed its meltdown.
Best of luck with your trading on Thursday!
Dave Landry
PS – Reminder: Protective stops on every trade!