Focus On These Sectors Making Transitions
On Tuesday, the Nasdaq opened flat and initially chopped
around. It found its low fairly quickly though and began to rally. It then
worked its way mostly lower throughout the afternoon after finding its high
around mid-day. However, it still managed to close well.
The S&P put in a similar performance but was a little
less impressive.
So what do we do? The fact that the indices stabilized and
reversed suggests that the up thrust from lows remains intact. Looking to the
sectors, a plethora of sectors are in either uptrends or making meaningful
transitions. These include (but are not limited to) retail, transports, semis,
broker/dealer, Internet, banks, biotech and gaming. Other areas such as
insurance and chemicals may be trying to make a transition higher.
Therefore, continue to focus on the long side. If you took index trades, you
might look to “scale and trail” now that they have moved in your
favor. And, once again, no matter
what you do, you might want to continue to keep it light as long as we
remain in news-driven environment.
Looking to potential setups,
the semis look poised to resume
their transition higher out of a Bow Tie-like formation.
Considering the above, Maximum Integrated Products
(
MXIM |
Quote |
Chart |
News |
PowerRating)
looks like it has the potential to continue higher out of a cup and handle.
National Semiconductor
(
NSM |
Quote |
Chart |
News |
PowerRating), mentioned Monday night,
still looks like it has the potential to rally out of a pullback/TKO.
FYI, my video
is now 10% off (the price, it’s still 100% intact).
Best of luck with your trading on Wednesday!
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.
