Let The Music Play!
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
markets opening. Therefore, overnight events may alter the
outcome of these observations.
On Tuesday, the Nasdaq lapped higher (a) and rallied to
close on its high (b). It wasn’t a straight line higher, but, hey, we’ll take
it!
This action gets it back above the psychologically
important 3,000 level. So far, it can’t be classified as nothing more than a
retrace/bounce but, it’s much better than a poke in the eye.
The follow through from Monday night’s signals (see
archive) combined with some of my other indicators and a CHADTP on the Market
Bias Page is encouraging. This does not mean that a bottom is
in but it does confirm continuation of a tradable bounce.
So what do we do? Based on the above, we will likely
see some additional follow through over the next few days. Continue to nibble on
the long side but ready to bail as soon as the music stops.
Looking to potential setups, NetIQ
(
NTIQ |
Quote |
Chart |
News |
PowerRating), mentioned
Monday night, followed through (a) from Friday’s reversal from tailing lower
(b). This action suggests its uptrend remains intact.
Melville
(
CVS |
Quote |
Chart |
News |
PowerRating) has begun to form a shallow
pullback and may be worth watching over the next few days.
On the short side, Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating), on
the Implosion
10 Technology List, looks poised to resume its recent meltdown from a major
topping fomation.
Art Technology Group
(
ARTG |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Lows List, is consolidating at lower levels and looks poised to make
another stab lower.
Random Thoughts
Is it just me, or does it seem that the perennial
bulls get credit on the first rally even though they’ve been wrong for months?
Be an independent thinker, do your homework,
be your own guru and forget about those guys.
Best
of luck with your trading on Wednesday!Â
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
P.P.S. Good news! Once again, I refuse to plug my upcoming book
on swing
trading at a 20% discount tonight.
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