How Intel’s Bad News Could Create An Opportunity
On Tuesday, the Nasdaq opened firmer but then generally
chopped its way lower throughout the rest of the day.Â
It remains below
its recent trading range/50-day & 200-day moving averages.
The S&P chopped back and forth in a narrow range. Â
So what do we do? The market remains
oversold. However, as you know, oversold can often become more oversold. And,
since the (after hours) news from Intel
(
INTC |
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PowerRating)Â isn’t so hot, chances
are pretty good that this will happen tomorrow. Therefore, for the aggressive,
should the market gap sharply lower on the open, look for a bounce play in the
index shares but only if they show signs of reversing. For everyone else, I
think I would wait for the market to bounce and then look to get short in
individual issues. On the long side, continue to focus on those sectors in
uptrends that can trade
contra to the indices. Metals & mining and and selected energy could
continue to provide opportunities here. Â Â
As far as setups, Mercury Interactive
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MERQ |
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News |
PowerRating),
mentioned Friday, still looks
poised to resume its meltdown out of a First Thrust. However, you might want to
hold off or trade at a reduced size since the market remains oversold.Â
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
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