Look For Opportunities In These Four Areas
Looking to the indices, on Tuesday, the Nasdaq opened flat but
quickly began to sell off. It found its morning low in early trading and then
traded back and forth for the remainder of the day.
The S&P chopped back and forth.
So what do we do? So far, the market
appears to be stabilizing in its pullback. Therefore, on the long side, look for
opportunities in sectors in strong trends that are doing the same. This
includes the semis, retail, banks, and homebuilders. On the short side, now the
market is becoming oversold, you might want to wait for the next
opportunity. If you’re putting together a watch list, areas stalling below
multiple tops may be a good place to look. These include selected areas (e.g. sub-sectors) of manufacturing,
Internet, telecom, and software.
Looking to potential setups, Integrated Silicon Solutions
(
ISSI |
Quote |
Chart |
News |
PowerRating),
mentioned Monday and in the aforementioned strong semis, still looks like it has the potential to resume its
accelerated uptrend out of a pullback. Note, there are many semis set up
tonight. Take your pick!
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
P.P.S. Learn my best swing
trading strategy in my new interactive CD-ROM. Click
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