An Early Hangover
On Monday, the Nasdaq sold off early and chopped around for
most of the day. Then, late in the day it resumed its sell off to close
poorly.Â
It looks like the 200-day moving average will be easily
challenged.
The S&P was also hit fairly hard.
So what do we do? Monday’ s
action is disappointing. Looking under the hood, many sectors such as the semis
look vulnerable. In general, it’s important for current levels in the indices
and tech sectors to hold. Look to play both sides but avoid big bets until the
volume picks up–which would signify that the big boys are back in town.
Looking to potential setups,
Mentor Graphs
(
MENT |
Quote |
Chart |
News |
PowerRating), mentioned recently, still looks like it has the potential to rally out of a
Trend Pivot Pullback. Just make sure you wait for an entry (above the pivot) as
it was down again on Monday.
On the short side, Flextronics
(
FLEX |
Quote |
Chart |
News |
PowerRating) looks like it has the potential to resume its rollover from an
inverted “V”-cup and handle.Â
Thanks!
As this year comes to a close,
I’d like to take a moment to thank all of you for making it a great one. Without
you, I wouldn’t be here. THANKS! Let’s get ’em in ’02!
Best of luck with
your trading on Monday!
 Dave Landry
P.S. Reminder: Protective stops on
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