Another Try At A Bounce Play?
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.
On
Wednesday, the Nasdaq lapped lower (a) and quickly found its low. It then
rallied over 100 points before giving up much of those gains (b).
So what do we do? We’re still way oversold here and
due for a bounce. However, you know me, I’m not much on fighting the overall
trend. Therefore, nibble on the long side while waiting for the shorts to set
up.
Looking to potential setups, Sigma-Aldrich
(
SIAL |
Quote |
Chart |
News |
PowerRating),
mentioned Tuesday and on
the Proprietary
Momentum List, is now set up as a pullback.
Englehard Corp.
(
EC |
Quote |
Chart |
News |
PowerRating), mentioned Tuesday night and on the Pullbacks
Off Highs List, still looks poised to rally out of a pullback.
Phillip Morris
(
MO |
Quote |
Chart |
News |
PowerRating), also
mentioned Tuesday night and also on the Pullbacks
Off Highs List, still looks poised to resume its strong uptrend. Don’t worry Gor, you can borrow my “Buns of Steel” tape.
Even though the underlying commodity looks questionable,
Chevron
(
CHV |
Quote |
Chart |
News |
PowerRating) looks like it has the potential to rally out of a deep
pullback.
Best
of luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!
NO!, I don’t make these up:
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