Accelerating Uptrend Potential For This Nasdaq Stock
Looking to the indices, on Thursday, the Nasdaq opened
slightly firmer but quickly found its high and began to sell off. It bounced
around mid-day but generally chopped its way lower for the remainder of the day.
This action has it closing poorly.
The S&P put in similar performance but wasn’t nearly as
weak as the Nasdaq.
So what do we do? I’m relieved to see
some corrective action in the market, especially in technology. And, since the
market remains in a strong uptrend, now’s a good time to start putting together
your watch list. Look for opportunities in stronger areas that are beginning to
correct. These include (but not limited to): telecom, computer hardware (peripherals
& networking), broker/dealer (and most other financials). However, wait for
entries since no one knows how far this correction will take us. On the short
side, rather than try to pick a top in tech, stick with areas that have shown
topping action and have recently pulled back. Gold and the homebuilders are two good examples here.
Looking to potential setups, Foundry Networks
(
FDRY |
Quote |
Chart |
News |
PowerRating),
in the aforementioned strong computer hardware– peripherals looks like it has
the potential to resume its accelerating uptrend out of a pullback/TKO.
Best of luck with your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S.
In February I’m having a small, exclusive three-day swing trading seminar and I would like you to attend.
Click
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