Bounce Soon?

  • February 5, 2002
  • Dave Landry

On Tuesday, the Nasdaq opened lower, bounced, sold off,
bounced, drifted and then rallied. Finally, it sold off going into the close. In
other words, it was all over the place.

 

The S&P was also all over the place. The good news here
is that last week’s lows held.

 

So what do we do? The path of least resistance still
remains down. However, we are so oversold that we could see a bounce in here
soon. This is especially true if we begin to get timing signals triggering.
Therefore, for now, don’t fight the tape. Wait for signs of a reversal before
attempting to play a bounce.

Looking to potential setups, Toll Brothers (TOL),
in the strong homebuilders (and let’s face it, nobody wants a weak home), looks
poised to rally out of a Running Cup and Handle.

 

Techne Corp. (TECH),
mentioned recently and in the weak biotechs, still looks poised to continue its
rollover out of an inverted cup and handle.

 

 

Best of luck with your trading
on Wednesday!

Dave Landry

sentivetradingco@prodigy.net

P.S. Reminder: Protective stops on every trade!

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