Fuggedaboudit!
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
market’s opening. Therefore, overnight events may alter the
outcome of these observations.
Once again, we’ve added more products to
Trader’s
Galleria. For instance, you can now get video tapes as well as audio tapes
from the TradingMarkets 2000 Conference. And while you’re there, don’t forget
to order my upcoming book on swing
trading at a 20% discount.
On Thursday, the Nasdaq gapped lower (a) but got back to
breakeven early on. Then, just as the opening gap reversal players were thinking
about counting their money, it began a sharp probe lower. This action took it
all the way down to its recent lows (b). Fortunately, it bounced off of these
levels and was able to close well/above the open (c).
The fact that the Nasdaq recovered is good, but that’s just
looking for good in the bad. If these lows can hold, then one can
make the case for rising triple bottoms. However, this bottoming process may
take some time. I see no reason to even think about getting bullish in here
until we either get an overwhelming number of buy signals in market indicators
and/or the market can rise (and stay) above its 50-day moving average.Â
So what do we do? Forgetting about the technicals for a
moment, the election fiasco will likely keep a damper on things for now. In
fact, at the time this is being published, there is some late breaking news and
the Nasdaq 100 futures are trading 50 points lower. So, considering all of the
above, stay defensive
and consider a short or two. Sound familiar?
Looking
to potential setups, Myriad Genetics
(
MYGN |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, sold off sharply earlier on Thursday (a) but recovered to
close well (b). This suggests its uptrend remains intact.Â
Aviron
(
AVIR |
Quote |
Chart |
News |
PowerRating), another pullback, also
tailed lower but recovered to close well.
On the short side, Noven Pharmaceuticals
(
NOVN |
Quote |
Chart |
News |
PowerRating),
mentioned Wednesday night and on the Proprietary
Implosion List, still looks vulnerable.
Cooper Cameron
(
CAM |
Quote |
Chart |
News |
PowerRating), mentioned recently,
still  looks poised to resume its downtrend.
Best
of luck with your trading on Friday!Â
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!