A Wet Blanket On Bottom Pickers Picnic?
Heads up! After the close, Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) announced bad
earnings and a negative forecast. The stock is getting creamed in after-hours
trading, down over 12% from its closing price.
On Tuesday, the Nasdaq gapped sharply higher and generally
worked its way higher throughout most of the day. Then, after some late-day
consolidation-type action, it resumed its rally going into the close. This
action has it closing well and above its 50-day moving average.
The S&P also put in a massive day.
As expected, the bottom pickers are coming out of the
woodwork. What they fail to admit is the number of times they have been wrong
over the last few weeks, months and years. Me? Well, as I always preach, I’ll be
wrong on the last pullback. So, if I’m wrong this time, I’ll be the first to
admit it. Afterwards, I’ll be looking to get long quickly on transitional
setups. However, the fact that Intel is short-circuiting in early after-hours
trading could throw a wet blanket on the “gurus'” picnic.
So what do we do? Since we are overbought in a
longer-term downtrend, continue to look for shorting opportunities. However,
keep it light due to recent volatility and focus on those sectors that failed to
keep pace with the rest of the market.
Looking to potential setups, defense
(
DFI |
Quote |
Chart |
News |
PowerRating) tailed
higher but reversed to close poorly in spite of Tuesday’s melt up. With that
said, Northrop Grumman
(
NOC |
Quote |
Chart |
News |
PowerRating), mentioned Monday night, still looks poised to continue its
rollover out of a Bow Tie.
Other
Borg Warner Automotive
(
BWA |
Quote |
Chart |
News |
PowerRating), mentioned recently,
failed to follow through for a money management example. So the only lesson here
is stated nightly in the “P.S.”
Best of luck with
your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…Your book is well written, concise, and laid out so that anyone with a
rudimentary background to a Master’s-level trading education could be very successful. You have done a superb job! My hat is off to you Mr. Landry!!!….”
Mathhew M.
No risk,
30-day, money-back guarantee.