Better Than A Poke In The Eye
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
market’s opening. Therefore, overnight events may alter the
outcome of these observations.
On Tuesday, the Nasdaq gapped higher (a) but found high
early on. It then chopped around and ended up flat on the day.
The good news is that it tested the old lows and was able
to recover. Nothing to write home about, but much better than a poke in
the eye.
The three-period
moving average of the TRIN (see last night’s archive) began to turn down on
Tuesday. This suggests that a tradable bounce may be under way.
So what do we do?
The TRIN action is somewhat encouraging, but so far, isn’t followed by
other signals and/or a turn in price. Therefore, you might want to nibble on the
long side and consider a short or two just in case.
Looking to potential setups, Trigon Healthcare
(
TGH |
Quote |
Chart |
News |
PowerRating),
on the Pullbacks
Off Highs List and in the strong healthcare sector
(
$HCX.X |
Quote |
Chart |
News |
PowerRating), rallied
nicely on Tuesday to recover from Monday’s knockout move (a). This action
suggests its uptrend remains intact. Oxford Healthcare
(
OXHP |
Quote |
Chart |
News |
PowerRating), another
healthcare on the same list, also looks like it has the potential to resume its
uptrend.
SEI Investments
(
SEIC |
Quote |
Chart |
News |
PowerRating), another pullback, rallied to
close well after an earlier shakeout move.
On the short side,
Redback Networks
(
RBAK |
Quote |
Chart |
News |
PowerRating), not to be confused with Redneck Networks, run by my
neighbor Bubba (I hope he never gets an Internet connection, otherwise, I’d have
to find someone else to pick on), looks poised to resume its downtrend,
especially if it can take out Monday’s pivot low.
Best
of luck with your trading on Wednesday!Â
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
P.P.S. Don’t worry, I’m back to not plugging my upcoming book
on swing
trading at a 20% discount.
Â
Â
.