Home On The Range
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
markets opening. Therefore, overnight events may alter the
outcome of these observations.
On Tuesday, the Nasdaq opened flat and after a brief early
morning rally, chopped and drifted ahead of the Fed. Then, on the announcement,
it rallied sharply. However, it stalled out and sold off to end up back where it
started.
The continued base building above the 50-day moving average is
constructive.
Monday’s low remains a reference point. If broken, the
2000 level/50-day moving average remains the next likely support level.
The S&P, like the Nasdaq,
appears to be in a range bound market–building a high-level base. This action
is positive, provided, of course, that the bottom of the range isn’t taken out
decisively.
So what do we do? I’m still seeing enough decent long
setups to keep me positive on the market. True, it is frustrating to get chopped
and stopped here and there, but, for the most part, these stocks appear to have
potential. Therefore, continue to focus on the long side but keep it light until
we get more follow through to the upside.
Lexmark
(
LXK |
Quote |
Chart |
News |
PowerRating), mentioned Monday night and on the Pullbacks
Off Highs List , still looks interesting to me.
Once again, Expedia
(
EXPE |
Quote |
Chart |
News |
PowerRating) and RF Micro Devices
(
RFMD |
Quote |
Chart |
News |
PowerRating),
both mentioned
recently, still look like they have potential to rally out of pullbacks.
Symantec
(
SYMC |
Quote |
Chart |
News |
PowerRating), also
mentioned recently and on
the Pullbacks
Off Highs List, still looks like it has the potential to resume its strong uptrend.
Internet Security Systems
(
ISSX |
Quote |
Chart |
News |
PowerRating) appears to be finding
support near its recent pullback. This suggests that is has the potential to
resume its uptrend. Just don’t overstay your welcome here as there is overhead
resistance above 60.
Best
of luck with your trading on Wednesday!
P.S. Reminder:
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