Let’s Be Careful Out There
On Wednesday, the Nasdaq opened lower and continued lower,
dropping over 2.5% at its lows. It then chopped around for most of the morning
before rallying to make back much of its losses.Â
The S&P also sold off before recovering. However, it
managed to close in the plus column.
So what do we do? We’re still in potential bounce mode but
the big blue arrow still points down. Therefore, continue to look to play both
sides. However, at the risk of preaching, make sure you wait for entries and stick with the strongest
stocks on the long
side and the weakest stocks on the short side. One last point, in case you
haven’t noticed, the markets are volatile. So hey, let’s be careful out there.
Looking to potential setups, Mandalay Resort Group
(
MBG |
Quote |
Chart |
News |
PowerRating),
in the strong gaming-resorts group, is becoming a low volatility situation.
Watch for a potential breakout to the upside.
For aggressive traders, volatile Cabot Microelectronics
(
CCMP |
Quote |
Chart |
News |
PowerRating),
mentioned Tuesday night and in the vulnerable semis, still looks poised to resume its meltdown out of a pullback.
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“………I have read your book over a dozen times and I am still learning new things. Thanks for making me realize that I am a “method” man and I have since changed my ways increasing my success greatly….Thank you again for writing a terrific book……”
Anthony P.
No risk,
30-day, money back guarantee.
Â