Correction Mode

November 28, 2001
Dave Landry

On Wednesday, the Nasdaq lapped lower and after a
brief blip up, mostly chopped lower for a trend day down. It looks
like it will challenge the bottom of its recent range, circa 1850.

Once again, the sell off in the S&P was more
severe.

So what do we do? I’m
still positive on the markets but obviously we are now in correction
mode. Therefore, look to play both sides but wait for signs of the
indices (and sectors) reversing before considering new longs–at least
until this correction plays out.

Looking to potential setups, Storage Technology (STK),
mentioned recently, still looks like it has the potential to resume
its strong uptrend out of a Trend Pivot Pullback.