Five Tech Areas That Could Offer Opportunities
Looking to the indices, on Friday, the Nasdaq opened weaker
and initially sold off. However, it found its low fairly quickly and began to
rally. Then after a mid-day pullback/consolidation, it resumed its uptrend going
into the close. This action keeps the index set up as a pullback.
The S&P put in a similar performance. This action keeps
it near its prior breakout levels.
So what do we do? I like the way the market traded lower and then reversed to
trade higher. As you know, this type of action often attracts eager
shorts and shakes out some nervous longs. And, it can help clear the way for the
market to trade higher. Therefore, continue to look for buy side
opportunities. Since the Nasdaq remains setup as a pullback, technology is
probably the best place to look. However, stick with stronger areas that are
also setup as pullbacks such as the semis, software, computer hardware, biotech,
and Internet.
Looking to potential setups, Cymer
(
CYMI |
Quote |
Chart |
News |
PowerRating), mentioned
Thursday night and in the
semis, still looks like it has the potential to resume its longer-term
uptrend out of a pullback.
Other
My apologies if I seem out of it tonight. Derrik Hobbs and
I were in a contest today (Friday). Every time they said “Dick Grasso” on CNBC, we did a shot of tequila.
Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…..I have read your book several times and I found it very empowering to me. My trading improved quite a lot….Grateful for your help…..”
George B.
