Watch These Three
The markets are in a narrow range today.
Not much is happening at all as far as news or any significant breakouts. The
Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) has fallen below its
200-day moving average at 9931.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) is dropping and has
support at around 1657. A break below this level could suggest a possible
retracement to 1600.
One of the sectors that has been performing
well because of the slide in the markets is gold. June gold
(
GCM2 |
Quote |
Chart |
News |
PowerRating) is
trading lower today. Gold made a nice move last week, as the markets were
drifting lower, more investors were flocking to gold, driving it to two-year
highs. June gold affects the movement of the PHLX Gold & Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating)
and some of the gold mining stocks, such as Anglogold
(
AU |
Quote |
Chart |
News |
PowerRating), Barrick Gold
(
ABX |
Quote |
Chart |
News |
PowerRating),
Newmont Mining
(
NEM |
Quote |
Chart |
News |
PowerRating) and Placer Dome
(
PDG |
Quote |
Chart |
News |
PowerRating). Gold is trading
at 310.60, down 1.50.
Phillip Morris
(
MO |
Quote |
Chart |
News |
PowerRating) is hitting a 52-week
high and looks like it may be trying to move above two months worth of
congestion. Also watch
(
RJR |
Quote |
Chart |
News |
PowerRating), which has a similar pattern but has not
moved to new highs (but is very close). MO appears to be the leader, so
if it starts moving, RJR will probably not be to far behind.
Coventry Health Care
(
CVH |
Quote |
Chart |
News |
PowerRating) is
pulling back from the high. To learn more about how to trade pullbacks
successfully,
click here.
Coventry Health Care has a
TradingMarkets.com RS3 rating of 94 and an uptrending
ADX
of 19. CVH is trading at 29.50, up 39.
Cooper Cameron
(
CAM |
Quote |
Chart |
News |
PowerRating), in the oil services,
is going positive. CAM has been basing near the highs for the last
week. Breakout traders may want to keep an eye on it to see if it can take out the
recent highs.
(
PTEN |
Quote |
Chart |
News |
PowerRating) and
(
DO |
Quote |
Chart |
News |
PowerRating) are also near the highs. Watch all
three and follow the leaders’ direction for a breakout, as well as a failure.
Sonic Automotive
(
SAH |
Quote |
Chart |
News |
PowerRating)
is pulling back from the high. To learn more about how to trade pullbacks
successfully,
click here.
Sonic Automotive has a
TradingMarkets.com RS3 rating of 93
and an uptrending
ADX
of 27. Sonic Automotive is trading at 35.92, down .08.
With the lack of buy side interest, it
suggests that the averages are still vulnerable to further downside moves.
In closing I would like to share this note with
you all. Often I have tried to squeeze every last point out of a trade and
always have regret not taking a profit and leave a little on the table. I would
encourage all of you to read
Larry Connors “This Week’s Battle Plan”. Larry explains in a very
entertaining fashion about taking profits and not worrying about leaving money
on the table.