Broken Blue Arrow?
On Wednesday, the Nasdaq opened flat and then rallied for a
solid trend day higher.
This action takes out the recent resistance decisively.
The S&P also rallied for a
solid trend day higher.
So what do we do? Wednesday
was another day that questioned the big blue arrow. The Nasdaq appears to be
short covering. Follow through will be key here. On the other hand, the S&P
continues to put in an impressive performance. The first correction here will be
crucial. Therefore, as mentioned on Tuesday, you might consider
nibbling some on the long side but only if you get entries. And, just make sure you
have a chair ready in case the music stops.
Looking to potential setups, for those willing to trade a
(recently) volatile stock, Harris Corp
(
HRS |
Quote |
Chart |
News |
PowerRating), in the strong defense sector,
is in the spirit of a pullback/cup and handle. I dunno, maybe I’m just jealous
of Greg Che’s recent call on LLL.
Comerica
(
CMA |
Quote |
Chart |
News |
PowerRating), mentioned recently, still look
vulnerable.
Boise Cascade
(
BCC |
Quote |
Chart |
News |
PowerRating), also
mentioned recently, still looks poised to continue its meltdown out of a
pullback from lows.
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…Your book was the best. I’ve read dozens of stock market books but when I finished yours, something clicked. Thanks for writing it and your column and I’ll see you in Vegas….”
Regards,
Dave (aspiring trend following moron)Â
Â
No risk,
30-day, money back guarantee.
Â