A Boatload Of Bulls
On Wednesday, the Nasdaq lapped higher, and after
a brief pullback, resumed its rally. Then, after giving up most
of its intra-day gains, it bounced going into the close.
Watch 2100/the 50-day moving average for
potential resistance here.

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The S&P didn’t do
as well as the Nasdaq. It tailed off (again) after closing in on a
resistance level (recent highs and the 50-day moving average).

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Some of the expected market timing signals
began to “kick in” on Wednesday. These include a CHADTP and
a CVR III sell signal. These two signals tend to lead the market and
can often trigger several days before market turns. I view them more
as a “get ready”–an overbought type indicator.
The fact that the market, especially the S&P,
is stalling right at a resistance level combined with market timing
signals kicking in keeps me on the cautious and somewhat bearish. Once
again, everyone seems to get bullish on every little rally.*Â I
remain in the Missouri camp. If things are so great, then “show
me” by getting above the 50-day moving averages and stabilizing.Â
So what do we do? Based on the above, I’m keeping
my short side bias. However, there’s no need to fight the tape. Wait
for signs of a reversal before getting too bearish.
Looking to potential setups, Westwood One (WON)
looks poised to continue its persistent downtrend out of a pullback
from lows. Â

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For those willing to
gamble, International Game Technology (IGT)
looks poised to resume its downtrend out of a Trend Pivot
Pullback–especially if it takes out Tuesday’s pivot low.
Loews Corp. (LTR)
tailed higher but reversed to close poorly. This action suggests its
downtrend remains intact.
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
*Is it just me, or did they roll
out a boatload of bulls today on CNBC?
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