Insult To Injury
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.
Heads
up! After the close, Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) announced that it would not meet
earnings expectations. The stock is trading more than 13 points lower in early after
hours trading. This will not bode well for the market on Friday. At the time
this is being published, the December Nasdaq 100 futures are trading nearly 100
points lower in Globex after hours trading.
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On
Thursday, the Nasdaq lapped open (a), chopped around, and ended lower.Â
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As
Kevin Marder pointed out today (Thursday), this sets up for a
Cooper/Connors 1-2-3-4 pullback from lows. Tonight, I was going to point out
that the setup is so obvious that it might not work (the market seldom accommodates
the obvious), but in light of the Intel news, we’ll likely gap lower on
Friday’s open. So this whole discussion was academic.
The
Intel news adds insult to injury to this market. Friday will be telling, this
could be the wash out move the market needs to flush out the rest of the nervous
longs OR it could just be a wash out. It’s important for us to stabilize going
into the weekend, especially with continued oil fears and a G-7 meeting looming.
So what
do we do? I really can’t find a silver lining to this story. I would not
try to take new positions anywhere near Friday’s opening. If we are able to
bounce, there may be some opportunities for the nimble. However, the safest
thing to do is watch on the sidelines.
face=”Arial, Helvetica”>Looking to potential setups, AvironÂ
(
AVIR |
Quote |
Chart |
News |
PowerRating), on the
Pullbacks
Off Highs List, looks poised to rally out of a shallow pullback.
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Marvel Technology
(
MRVL |
Quote |
Chart |
News |
PowerRating), mentioned
Wednesday night, still looks like it has the potential to resume its strong
uptrend.Â
Capital One Financial
(
COF |
Quote |
Chart |
News |
PowerRating), mentioned
recently, began rallying out of a pullback on Thursday and still looks
interesting to me.
On the short side, well, the stocks I was
going to mention: Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) (no kidding!) and Dell Computer
(
DELL |
Quote |
Chart |
News |
PowerRating)
are already down sharply in after-hours trading. So, for-get-a-bout-it.
Looking ahead, Emerson Electronics
(
EMR |
Quote |
Chart |
News |
PowerRating)
may set up as a short over the next few days if it can pull back from lows.
Best
of luck with your trading on Friday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!