Golly Geez!
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.
Finding setups is
fun, but that’s just one small part of trading. Check out my latest article on
what to do After
The Setup.
I’m pleased to announce that we recently launched the Trader’s
Galleria. Check it out, there you’ll find books, software, trading courses,
computers and just about everything else a trader needs to be successful. You
can even pre-order my upcoming book on swing
trading at a 20% discount.
Just
a reminder, I’ll be speaking on the afternoon of Saturday, October 14th at the TradingMarkets2000 First Annual Traders
Conference. I’ll also be available for a one-hour private workshop held later
that day.
Golly!
What a day, huh? On Friday, the Nasdaq gapped over 200 points lower on the Intel
earnings warning. However, this turned out to be a gnat’s eyelash away from the
exact lows (a). The index rallied about 100 points and began drifting sideways
to digest its gains while Wall Street digested lunch. Then late
afternoon, it began to slowly, but surely, grind higher to just about make up that
other 100 points. This has it closing on its high (b).
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The
rally was supported late in the day as the news of the release of the strategic
oil reserves flowed into the market. Geez, isn’t it funny how they wait to near
the close to announce good news?
Friday was a day that made everyone who bought
on the open and sold on the close look like a genius. Be warned though, it isn’t
always that easy. Sometimes, after a hard down, they keep on going. Other times,
they rally just enough to give hope, then resume their free-fall.
In a way, Friday was healthy as it scared out
many of the nervous longs. Of course, the fact that it came right back, may have
drawn them back in, but we’ll score it as a positive anyway.
So what do we do? The market was so strong
going into the close that it looks like it couldn’t help but follow through. However,
there’s plenty out there to muck things up. Therefore, focus on the long side
but don’t bet the farm.
face=”Arial, Helvetica”>Looking to potential setups, AvironÂ
(
AVIR |
Quote |
Chart |
News |
PowerRating),
mentioned Thursday night and on the
Pullbacks
Off Highs List, formed a bullish outside day in a pullback on Friday.
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Marvel Technology
(
MRVL |
Quote |
Chart |
News |
PowerRating), mentioned
recently, is finding support near 85 and still looks like it has the potential
to resume its uptrend.
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Calpine Corp.
(
CPN |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, closed well on Friday and looks poised to make another
stair-step higher.
American General Corp.
(
AGC |
Quote |
Chart |
News |
PowerRating) looks poised
to rally out of a seven-bar pullback.
Best
of luck with your trading on Monday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!