Even More Blue Arrows
Each evening we focus
on the most interesting aspects for the upcoming trading
day. The comments are based on observations of the nightly
updates of the Stocks/Sectors and Market Bias pages. They
are provided for educational purposes only and are not
intended to be direct trading advice. Also, keep in mind
that these remarks are made up to 12 hours in advance of the
markets opening. Therefore, overnight events may alter the
outcome of these observations.
On
Monday, the Nasdaq gapped higher on the open (a) but it found its high near this
area. After chopping around a bit, it then sold off and closed poorly (b).
The fact that
the Nasdaq is stalling out in a pullback from lows suggests that a test of the
old lows in in the cards.
So what do we do? I wish I had something new and
exciting to tell you, but I don’t. The recent bounce from lows has set up
numerous shorts. With that said, continue to follow the big blue arrows and
focus on the short side.
Looking to potential setups, Comverse Technology
(
CMVT |
Quote |
Chart |
News |
PowerRating),
mentioned Friday night, appears to be pivoting back into the direction of the
big blue arrow.
Solectron
(
SLR |
Quote |
Chart |
News |
PowerRating),
on the Pullbacks
Off Lows List, also looks poised to continue in the direction of the
big blue arrow.
And, National Instruments
(
NATI |
Quote |
Chart |
News |
PowerRating)
is another one.
For those with large ones*, Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating), poster
child for volatility and on the Trading
Where The Action Is List, appears to be stalling out in a pullback from
lows.
Best
of luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!
*accounts
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help swing traders….. I really appreciated your market analysis process…”
Rick F.
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