Truth Hurts
Once again, the market has reversed. The current trend in the futures is
down.Â
For those who follow Bollinger Bands, you will notice that they
are narrowing, which would predict a significant move in the near future. Of
course, they do not predict which direction.
My other favorite index to follow for guidance, the SOX, has
shown the first green bar in about 30 minutes. But it has not recovered.
But in the bigger picture, the S&P 500 is showing a
short-term uptrend.
Today’s Watchlist:Â
(
IDPH |
Quote |
Chart |
News |
PowerRating)
IDEC Pharma
(
IDPH |
Quote |
Chart |
News |
PowerRating) has been consolidating for the last
week. After breaking out to a new high has paused to take a rest. With the
biotechs and healthcare group showing continued strength, we will watch for a
continuation move to another new high. The two aforementioned groups have been
moving up, and in opposition to the tech group.
Set your alerts to prepare for a breakout above the intraday
high from Wednesday. While the stock is currently trading out of the range and
below the breakout level, you never know where it could go.Â
On the other side, I think that it’s also worthwhile to watch for
a short opportunity. If you look for a short, watch for support near the second
red line below.
Â
Until later,