Don’t Fight It, Yet
On Friday, the Nasdaq popped up but quickly reversed. Then
after bouncing around, managed to chop higher to close just about where it
started.
I’m a little disappointed that we didn’t see more follow
through from Thursday’s massive rally, but this does put us at the highest level
since August. And that’s not all bad.
The S&P put in a decent performance. It also closed at
multi-month highs and finished above its 200-day moving average.
So what do we do? As implied
above, I would have preferred to see more follow through in tech,
but I guess we’ll take what we can get. The market is getting overbought in here
and the Nasdaq is stalling a bit. However, I don’t think this is reason enough
to fade the market. Therefore, continue to focus on the long side,
but make sure you keep your stops in place just in case.
Looking to potential setups,
Centex (CTX),
in the strong residential construction sector*, looks poised to rally out
of a pullback.
again, there are quite a few decent smaller cap issues (with volume too low for
me to mention in this column) set up on tonight’s Pullbacks
From Highs List. See for yourself.
Best of luck with your trading
on Monday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
*I don’t know about where you live, but even at
this hour, from my office I can hear a bulldozer and see/smell smoke from fires.
I assume they are getting rid of all those unsightly trees so they can build a
pretty house.
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UK
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