A Stock That May Be Worth A Second Look
Looking to the indices, on Friday, the Nasdaq opened lower
but quickly found its low and began to rally. However, it found its high by
mid-day and generally worked its way lower throughout the rest of the day. This
action has it closing poorly and in the minus column.

The S&P also sold off to close poorly.

So what do we do? Friday’s action suggests
that the correction has begun. This isn’t a bad thing though. As you know, the
indices (especially the Nasdaq) have been very overbought lately and needing of
a correction. Therefore, stronger areas that are pulling back along with the
market such as retail and software could offer opportunities. Just make sure you
wait for entries since we have no way of knowing how much further they
(and the market) will correct.
Looking to potential setups, Actel
(
ACTL |
Quote |
Chart |
News |
PowerRating), mentioned
Thursday (see archives for details), did a “head fake” on Friday (i.e.
triggered but reversed to close poorly). However, so far, it hasn’t done
anything wrong. In fact, many times, a second entry (e.g. patterns like a Trend
Pivot Pullback) is the best entry.Â

 Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…..I have read your book several times and I found it very empowering to me. My trading improved quite a lot….Grateful for your help…..”Â
George B.
Â