Bouncing Into Resistance
On Thursday, the Nasdaq gapped open but reversed to chop
lower. However, it found its low early and then chopped its way higher.
This action puts it right at its 200-day moving average.
The S&P was also choppy but was able to outperform the
Nasdaq and showed nice strength going into the close.
So what do we do? On Thursday, the Nasdaq was choppy and
the sectors were somewhat mixed. However, the late-day thrust in the S&P was
impressive. I think we could see some follow through to the upside, but there is
a lot of overhead resistance in the indices. Therefore, nibble on the long side
but wait for entries and honor your stops.
Looking to potential setups, although software in general
remains in a base building mode, Seibel Systems
(
SEBL |
Quote |
Chart |
News |
PowerRating) looks like it has
the potential to rally out of a pullback.
ABGX Follow Up
Abgenix
(
ABGX |
Quote |
Chart |
News |
PowerRating) gapped higher to take out the two-bar
trailing stop. I’ll recap this example on Friday.
Best of luck with
your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“….Landry writes clear, lucid prose, and uses lots of examples. I like this book because of Landry’s simple approach. He shows many useful trading ideas instead of trading theory….. It’s a good introduction for a novice trader…..”
About.com “Top 5
Books On Trading”
No risk,
30-day, money back guarantee.