Keep Nibbling?
On Friday, the Nasdaq chopped slighter lower,
chopped higher and then ended up just about where it started.
The lack of follow-through is somewhat
disappointing, but it still looks like it has the potential to
challenge the top of its recent range.
No real follow-through to speak of in the S&P
either. However, it too looks like it has enough momentum to challenge
the top of its recent trading range.
So what do we do? As
mentioned above, Friday’s lack of follow through is somewhat disappointing
but at least the market didn’t go down. Therefore, as mentioned
recently, as long as we can stay above the bottom of the trading
ranges, we can continue to nibble on the long side.
Looking to potential setups, once again tonight’s
Pullbacks
Off Highs List has quite a few decent-looking stocks.
Immunex (IMNX),
in the strong biotech sector, looks like it has the potential to rally
out of a Trend Pivot (false rally) pullback. This is were a stock in a
strong rally pulls back and has a false rally (a). This action
attracts the pullback players and then shakes them out (possibly
attracting shorts). Should the rally resume (i.e. "a" get
taken out), the shorts will have to scramble to cover and the recent
longs may be forced back in. One point though, looking to the weekly,
it does have some overhead resistance in the $30 range, but hey, that
would be a good problem to have.
Cephalon (CEPH)
looks like it has the potential to rally out of a big picture cup and
handle.
Best of luck with
your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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