Cautiously Optimistic
On Wednesday, the Nasdaq was all over the place. It
rallied, sold off, rallied and then sold off again. The good news is that it
remains above recent support and its 50-day moving average.
The S&P also had a volatile day.
The good news here is that the 1060-ish support level
continued to hold.
So what do we do? Tonight’s
commentary is pretty much the same as last night. The market still seems a
little sold out to me. This, combined with the fact that support continued to
hold and that timing systems that I follow should kick in on the buy side
over the next few days is keeping me cautiously optimistic. Therefore,
like I said last night, I think you can continue to tighten stops on shorts and
look to nibble on the long side–provided of course, you get entries on
your setups.
Looking to potential setups, it
now appears that the breakout in Blockbuster Entertainment (BBI)
(mentioned recently, see archives for more explanations of trading volatility)
will be to the upside.
QLT Inc. (QLTI),
mentioned last night and in the strong biotech sector, appears to be resuming
its melt up out of a pullback from highs.
On the short side, HCA (HCA),
mentioned recently, still looks like looks poised to resume its downtrend out of
a pullback from lows.
Best of luck with your trading
on Thursday!
Dave Landry
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