First Pullback Holds
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 Thursday, the Nasdaq gapped higher on the open but never
really got much higher. Then, after some chopping around, it sold off late in the
day to close poorly.Â
Although Thursday action is disappointing, the fact that
the 50-day moving average held is somewhat constructive.
So what do we do? Obviously, the fact that the Nasdaq
gapped to near its high and closed on its low is negative. However, the fact
that it is still holding up in this first pullback is keeping me constructive on
the market. Therefore, continue to focus on the long side but, as always, wait
for entries.Â
Looking to potential setups, Triquint Semiconductor
(
TQNT |
Quote |
Chart |
News |
PowerRating),
mentioned Wednesday night as a Bow
Tie/cup and handle, still looks like it has the potential to resume its
uptrend. Just wait for an entry as it did close
poorly. Also, don’t overstay your welcome as there is overhead resistance
above 30.
Â
Viropharma
(
VPHM |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, looks poised to resume its strong uptrend from lows.
On the short side, Ambak
(
ABK |
Quote |
Chart |
News |
PowerRating), mentioned recently,
still looks vulnerable.
Other
Last night, I had dinner with a gentleman who was complaining because a broker lost a sizable portion of his net worth over the last
year. He wanted to bring the broker to my office so I could “scold him”. Of course, I politely refused. I then thought, if you really want to “teach” that broker,
bring a six-year old to his office to explain trends.
Best
of luck with your trading on Friday!Â
P.S. Reminder:
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