WW III
It looks like a war out there, not only because of all the red on my screen,
but because of another indicator I like to watch. The number of new highs versus
the number of new lows. Today, there are hardly any new lows or new
highs. This tells me that stocks are consolidating and not breaking out in
either direction.Â
If you went with my Trading the Open selection and are short Manugistics
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remember to trail your stops.
As for the rest of the market, the Nasdaq futures continue to consolidate. It
is noteworthy that they have yet to feel the gap.
As for strength today, turn your eyes to no other than the
pharmaceuticals, a sector which will always have a market for its products.
In this group, keep an eye on Merck
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The other strong group, which I
discussed this morning is healthcare, and particularly the healthcare
facilities. One name worth watching in group is Lifepoint
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trying to break out.
Today’s Watchlist:Â
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Now that I have looked at the strong side of the market, let’s
turn to something weak, the tech sector.
Ciena
(
CIEN |
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PowerRating) tested the breakout level for the first time
in several months. In October, it it to breaking out from its cup formation,
instead, it broke out and then failed by gapping lower and collapsing. If
the weakness in the market continues, it will keep pushing the communications
equiptment group lower, and possibly take Ciena with it. Set your alerts near
Thursday’s intraday low.
Â
Until later,