Continue To Use News To Your Advantage
On Thursday, the Nasdaq had a narrow day of chopping back
and forth.
This action keeps near the bottom of its recent trading range. The top of
this
trading range, which also corresponds with its 50-day moving average/200-day moving
average, could provide resistance.
The S&P also had a choppy day.
This action keeps it near the bottom of its trading range. The top of
its trading range here (which will likely soon correspond with its 50-day moving
average) is a focus area for resistance too.
So what do we do? Thursday gives further evidence of
how news (in this case rumors) is jerking this market around. Therefore, at the
risk of boring you to death, continue to use the news to your advantage: On the rallies, look for potential candidates to short.
On the sell offs, look to lock in profits and tighten stops on existing shorts.
No matter what you do, I would continue to keep it light for the above reasons
and because of the fact that we remain stuck in a shorter-term trading
range.
No setups tonight.
Trail ’em If You Got ’em
Dupont
(
DD |
Quote |
Chart |
News |
PowerRating), mentioned recently (a), has moved
nicely lower since then–closing at 52-week lows on Thursday (b). When you
have a profit on your remaining shares (see recent archives for more on
this), make sure you trail your stop lower. In this case, its breakdown
level/2-points higher than its close, circa 37 and change (c), provides a good
level for trailing stop.
Best of luck with your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
P.P.S. FYI, 6 and 12-month trading service
subscriptions (including upgrades) are 10% off through March 12th.
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