Head Fake
On Friday, the Nasdaq opened flat and after a brief blip
up, sold off–hard. Then, early in the morning, it found its low and mounted the
mother-of-all comebacks to finish up just about where it started.
The S&P was much stronger.
It held above its recent lows before reversing.
So what do we do? The head fake in the Nasdaq below the
recent lows may have trapped breakout (or more accurately breakdown) players on
the wrong side of the market. This, combined with a repeat CVR 1 buy signal,
a day old TRIN Reversal and the positive action in the S&P suggests
that we could get a continuation of this tradable bounce. At the risk of
preaching, just remember that we are still in a bear market. Enjoy the bounce
but keep your chair ready for when the music stops.
Looking to potential setups,
Photon Dynamics
(
PHTN |
Quote |
Chart |
News |
PowerRating) looks poised to resume its uptrend out of a
pullback. Just don’t overstay your welcome here as there is longer-term overhead
resistance (in the 40s).
On the short side, Metro One
Telecom
(
MTON |
Quote |
Chart |
News |
PowerRating) looks poised to break down out of an inverted cup and
handle.
For those willing
to gamble (I’m going to keep making this joke until I get a groan),
International Game Technology
(
IGT |
Quote |
Chart |
News |
PowerRating) looks poised to make yet another leg
lower.
Making Me Proud
Several
of you emailed me this morning to tell me that you didn’t “trust” this
market early on. You went on to say that you waited for second entries and were
successful. Congratulations and thanks for the feedback!
Best of luck with
your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…Your book is GREAT!!!….”
Harry D.
No risk,
30-day, money back guarantee.
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