Just Enough
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.
On
Tuesday, the Nasdaq lapped higher (a) and chopped around. Then after
lunch, when no buyers were willing to step up to the plate, it resumed its
slide. Once again, it closed near its lows (b).
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Tuesday’s action is similar to Monday’s. Once
again, the market rallies just enough to give hope to the longs and scare the
shorts. Then, it goes where it wants to go.
My advice? Continue to tread lightly and
remain cynical. These sucker rallies (which aren’t obvious until after they
occur) are beginning to become annoying. If you are getting chopped up in your
swing trades, take a step back until things shake out. As Gann said, “You
can’t lose money while you are out of the market”.
face=”Arial, Helvetica”>Looking to potential setups, Quest Diagnostics
(
DGX |
Quote |
Chart |
News |
PowerRating),
mentioned recently on the Pullbacks
Off Highs List, continues to drift lower, but, the long term trend still
remains up. Just wait for follow through to the upside as it did close poorly
again on Tuesday.
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Abgenix
(
ABGX |
Quote |
Chart |
News |
PowerRating) appears to be finding support at 68 1/2 and looks like it may have
the potential to rally out of a cup and handle.
On the
short side, Proxicom
(
PXCM |
Quote |
Chart |
News |
PowerRating), mentioned Monday night, closed poorly on
Tuesday and still looks interesting to me. American Towers
(
AMT |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Lows List, looks like its resuming its breakdown.
On the lighter side, Bullish Guy called me
today. Bullish Guy, as his name suggests, is always bullish. Today however, he
was beginning to get concerned. Oh, he still had a few bullish things to show
me, but I could hear it in his voice. So, based on my Bullish Guy Indicator (BGI),
we may be getting close to a low. I’ll let you know as soon as he turns
bearish!Â
Best
of luck with your trading on Wednesday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!