Fire-Breathing Bear
On Friday, the Nasdaq opened flat but turned lower and
continued lower for most of the morning. It then chopped mostly sideways during
the afternoon.
It looks like it wants to test its recent lows.
The S&P put in a similar performance. It too looks
like it has the potential to test its recent lows.
So what do we do? The pendulum is now in the process of
swinging from overbought back to oversold, as the indices are continuing to sell
off out of pullbacks. Therefore, you might look to tighten stops on existing
shorts and begin to take partial profits. On the long side, (it’s been a LONG
time since I said that), take a look at the biotechs (see below).
Looking to potential setups, biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating)
appears to have formed a low-level cup and handle/Bow Tie. Therefore, you might
look to play the Ishares here (either the BBH or IBB). Just wait for entries
and, don’t bet the farm since a) the overall market remains vulnerable; and b)
it’s early in the (new?) trend.
Other
Once again, I’m still getting a lot of files back,
especially from Yahoo:
On Tuesday,
I showed a recent trade (walk through) from my trading service. I also offered
an “archive” of the services for this trade so it could be studied
more carefully. The zipped file is fairly large (about 1.7mb) and seems to be
rejected by most “browser”-based emails (e.g., “hotmail”). If
you requested it and did not receive it, please send me an alternate email address
and I’ll be happy to re-send.
And Now For Something Completely Different
Yesterday, after a long stressful day, I came across the graphic below
and laughed my a** off. Not sure why, maybe I was just punch drunk.
Anyway, if you
can tell me where I found this, I’ll give you a free month of my trading service.
However, I’ve got a feeling that this one might not be so easy. Therefore, each
day that goes by without a winner, I’ll up the ante.
Best of luck with
your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!