Bounce Or Blue Arrow?
On Tuesday, the Nasdaq opened flat and began to rally.
However, it found its high by noon and then chopped around for the rest of the
day.
The S&P formed a similar pattern.
So what do we do? It appears the bounce is under way but the
indices are already showing signs of stalling intraday. Therefore, in light of
such mixed signals, look to play both sides — the long side for the potential
bounce and the short side for a resumption of the big blue arrow (down). No matter what you do, wait for entries and stick with the strongest on the long
side and the weakest on the short side.
Looking to potential setups, Lincare Holdings
(
LNCR |
Quote |
Chart |
News |
PowerRating),
in the strong health services sector, still looks like it has the potential to resume
its uptrend out of a pullback.
For those with big ones*, volatile Cabot Microelectronics
(
CCMP |
Quote |
Chart |
News |
PowerRating),
in the vulnerable semis, looks poised to resume its meltdown out of a Trend
Pivot Pullback.
Other
Please stop the emails claiming that I am the jackass. The
donkey was from Shrek.
Best of luck with
your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
*Accounts.
“………I have read your book over a dozen times and I am still learning new things. Thanks for making me realize that I am a “method” man and I have since changed my ways increasing my success greatly….Thank you again for writing a terrific book……”
Anthony P.
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