Focus On The Long Side As Long As Support Holds
On Wednesday, the Nasdaq chopped back and forth.
The S&P put in a similar performance.
Monday’s lows, circa 860, continue to hold.
So what do we do? The fact that the indices remain above
support suggests that their up thrust from lows remains intact. Further, many
sectors are still either in uptrends or are making meaningful
transitions. Once again, these include (but are not limited to) retail, transports, semis,
broker/dealer, Internet, banks, biotech and gaming. Other areas such as
insurance and chemicals still look like they could be trying to make a transition higher.
Therefore, continue to focus on the long side. And, at the risk of
preaching, no matter
what you do, you might want to continue to keep it light as long as we
remain in a news-driven environment.
Looking to potential setups, Harrah’s Entertainment
(
HET |
Quote |
Chart |
News |
PowerRating),
in the improving gaming sector, looks like it has the potential to continue
higher out of a low level cup and handle.
Maximum Integrated Products
(
MXIM |
Quote |
Chart |
News |
PowerRating) and National Semiconductor
(
NSM |
Quote |
Chart |
News |
PowerRating), mentioned
recently and in the strong semiconductor sector, still looks like they have the potential to
rallies.
Best of luck with your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“….your book is like an investing bible to me, and I thank you very much for writing in a simple straight forward style that even a novice like me can use….”
Thanks Much,
Cliff A.
