Choppy
On Friday, the Nasdaq opened higher but sold off almost
immediately. The rest of the day was spent chopping around. It finished on its
lows. This action (if you want to call it that) keeps it below its 50- and
200-day moving averages.
The S&P also had a choppy narrow-range day. It too
remains below the 1130-ish resistance level and below its 50- and 200-day moving
averages.
So what do we do? Failure of the S&P to break through
the 1130 resistance level combined with Thursday’s TRIN Reversal is keeping me
cautious. Also, lately the market has been pretty choppy (the S&P has
changed direction in 11 out of the last 12 trading days). Therefore, continue to
look to nibble on the short side but keep it light.
Looking to potential setups, Siebel Systems
(
SEBL |
Quote |
Chart |
News |
PowerRating),
mentioned Thursday night and in
the vulnerable software sector, still looks like it has the potential to resume its
downtrend out of an inverted cup and handle.
Research In Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating), mentioned recently, still
looks poised to resume its meltdown out of a pullback from lows.
Email Of The Day
Time to post a negative review of your book. The inside of your glutus (sic) maximus must have a sunburn from all the sunshine piped up there.
It hasn’t gone to my head, I know
that “The sun doesn’t shine on the same dog’s butt every day.”
Best of luck with
your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“….Your idea about the MAs narrowing, crossing and setting up in proper order sure is a good one. It makes flipping through charts a piece of cake; another great idea from your marvelous book…..”
Grant C.
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