Hot Dog!
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.
As
I came into today (Monday), I pretty much had in my head
what I was going to write: “Not much market movement in
thin, half-day, pre-holiday trading.” And that’s about
what the Nasdaq did. I suppose I could dissect things and
say that the Nasdaq is near the top of its recent trading
range (a) and below the breakout levels (b). But that’s just
trying to find something to say.
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What
is worth talking about is the fact that the S&P
500 had a decent rally. It was up over 1%, and the September
S&P futures were up nearly 1.5%. Volume was decent for a
half-day session, and advancers beat decliners on more than
a 2-to-1 ratio.
All
this is encouraging for the first day of the new quarter. It
suggests that money managers are putting some money to work
and may be trying to get a head start on those money
managers who are busy cooking their hot dogs.
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Looking
to potential setups, Cell Therapeutics
(
CTIC |
Quote |
Chart |
News |
PowerRating), on the
From Highs List, appears to have stabilized after
Friday’s shakeout move (a). This suggests that its uptrend
remains intact. Vertex Pharmaceuticals
(
VRTX |
Quote |
Chart |
News |
PowerRating), on the
same list, is a similar pattern.
Â
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Continuing
on the pullback theme: For those willing to assume a high
degree of risk, Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating), mentioned recently and
on the
From Highs List, closed well on Monday and looks poised
to rally out of its pullback.
For
you breakout players, C&D Technologies
(
CHP |
Quote |
Chart |
News |
PowerRating), on the
Momentum List, closed at an all-time high on
Monday and looks poised to take out Friday’s all-time high.
Best
of luck with your trading on Wednesday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
P.P.S. Enjoy your
Independence Day Holiday! Or, for our international readers,
enjoy Tuesday!