Exercise Caution
On Thursday, the Nasdaq opened lower and worked its way lower
throughout the day. This action takes out its recent lows and has it closing
poorly. And, it suggests the February lows could be challenged.
The S&P was hit especially hard.
So what do we do? The market is now very oversold and due
for a bounce. However, as
you know, this doesn’t mean that it can’t go even lower. Therefore, exercise
caution since picking a direction will be difficult. On the long side, stick with issues that can trade contra to the
indices. On the short side, focus on those issues that have pulled back.
Looking to potential setups, Mylan Labs
(
MYL |
Quote |
Chart |
News |
PowerRating), in the
weak drugs, looks poised to resume its downtrend.
Best of luck with
your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…..Through applying the principles in your book I have been able to recoup 52% of my losses in my IRA since October of last year. Your book and TM, what a great combination….”
Jim/Sacramento
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