Aahh, Siesta
Each evening we focus on the most
interesting aspects for the upcoming trading day. The comments are based on
observations of the nightly updates of the Stocks/Sectors and Market Bias pages.
They are provided for educational purposes only and are not intended to be
direct trading advice. Also, keep in mind that these remarks are made up to 12
hours in advance of the markets opening. Therefore, overnight events may alter
the outcome of these observations.
Dave Landry is enjoying a well-deserved
vacation in beautiful Cancun, Mexico. He will return on Wednesday, May 9. In his
absence this column will be written by TradersWire’s Director of News Duke
Heberlein.
On Monday, the Nasdaq opened well, pulled back briefly and
found its high just after 10 AM. From there it slid to its low around noon and
after trying to mount an afternoon rally headed back down into the close. But
despite the disappointing day, the index lost less than 1%, ditto for the Dow
and S&P.
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So what do we do? I like the fact that the losses were small,
and a little indigestion is not out of the ordinary following gains of nearly 5%
in one session, like we had on Friday. So today’s siesta really was quite
possibly a good thing. Also, at the risk of sounding too Landryesque, the big
blue arrow is still pointing up, and since I am also a fellow member of the
trend following moron society, I will continue to look at the long side, with a
couple of short setups warming up in the bullpen in case the market needs some
more relief.
Looking ahead to potential setups, St. Jude Medical
(
STJ |
Quote |
Chart |
News |
PowerRating),
off the Proprietary
Momentum List, is an expansion breakout for you momentum players.
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Quest Diagnostics
(
DGX |
Quote |
Chart |
News |
PowerRating), from the Pullback
List, is setting up into a pullback/Bow Tie.
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And Astro Power
(
APWR |
Quote |
Chart |
News |
PowerRating), off the same list, has
pulled back into a flag.
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On the short side, Impath
(
IMPH |
Quote |
Chart |
News |
PowerRating), from the Implosion
List, is tracing out a bearish Lizard in the midst of a pullback from lows.
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And finally, McCormick & Co.
(
MKC |
Quote |
Chart |
News |
PowerRating), off the Pullbacks
From Lows List, is a pullback/Bow Tie.
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Best of luck with your trading Tuesday!
P.S. Protective stops on every trade.
P.P.S. As usual, I refuse to plug my friend’s most excellent book.