Bounce Mode
On Wednesday, the Nasdaq opened flat and after several
quick reversals, sold off fairly hard. It then chopped its way higher for most
of the day. Finally, late in the afternoon, it rallied to new intraday highs.
This action has it closing well.
The S&P was also choppy but it too managed to rally
fairly sharply late in the day.
So what do we do? The fact that the indices closed well, combined with multiple buy signals triggering, suggests that we remain in bounce
mode. However, because there are very few sectors in uptrends (and even fewer
setups), you might look to nibble at the index shares (mentioned Tuesday night)
for your buy side fix. Once again, just
don’t overstay your welcome since you are fighting a longer-term trend. On the
short side (since the longer-term trend does remain down), watch areas of
technology such as the semis and software that could set up over the next few
days.
Looking to potential setups, Sabre Holdings
(
TSG |
Quote |
Chart |
News |
PowerRating),
mentioned recently, looks like it has the potential to resume its downtrend out
of a Trend Pivot Pullback.
Resolution
Thanks to an email received, I think I’ve solved the
“marathon” also being a race criticism. From now on, the saying will
be: “It’s a pace, not a race.”
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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