Keep Nibbling?
On Monday, the Nasdaq opened flat and after chopping around
a bit, drifted sideways in dull late-summer type trading. Then, early afternoon,
it gained its footing and began to rally. It wasn’t the most exciting day that
Wall Street has ever seen, but, we’ll take it.
This action has it closing well and keeps Friday’s low
intact as a reference support level.
The S&P didn’t do much. It
chopped around in a narrow range.Â
The good news here too is that
it stayed above Friday’s lows.
So what do we do? I still think we are in bounce mode.
Therefore, continue to nibble on the long side. I use the word nibble
because a) we are still in a bear market and b) it’s choppy out there.
As I look to potential setups,
I don’t have too many stocks on my legal pad. This is my unofficial gauge of
whether or not to trade. With that said, here are a few of interest:
Zoran Corp.
(
ZRAN |
Quote |
Chart |
News |
PowerRating) appears
to be rallying out of a deep pullback.
Plexus
(
PLXS |
Quote |
Chart |
News |
PowerRating) has formed a
pattern similar to ZRAN.
For those willing
to gamble, International Game Technology
(
IGT |
Quote |
Chart |
News |
PowerRating) looks poised to make yet another leg
lower. Anchor Gaming
(
SLOT |
Quote |
Chart |
News |
PowerRating) is a similar pullback from lows type pattern.
The
Six Year Old Challenge
Some
of you longer-term readers may remember me once speaking of a friend who wanted
me to speak with his broker. He wanted to drag me down to his broker’s office so
I could “teach his broker a lesson”. At the time, I suggested that if
he really wanted to make an impact, he should take along a six-year old kid. The
kid could look at the charts and question why stocks were bought that were in
clear downtrends.
We’ll, it’s been a year now and
his portfolio has sustained some serious losses. And, once again, he approached
me to “teach his broker a lesson”. And, once again, I suggested he
take along a six-year old instead.Â
Best of luck with
your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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