Look To Buy But Wait For These
On Friday, the Nasdaq sold off throughout the morning and then traded mostly
sideways for the remainder of the day. 2100 is possible resistance here.Â
Â
The S&P bounced after finding its low late in the day.
This wasn’t enough to keep it out of the minus column though. It remains
in a short-term sideways trading range. Â
As far as the sectors, technology, like the Nasdaq itself,
remains generally constructive with many areas setting up as pullbacks. Internet
remains the strongest here. Software, hardware (most), semis, and telecom also
remain in uptrends in spite of recent weakness. Outside of tech, interest
sensitive issues such as REITs have been doing very well. Use caution here
though since the bonds have been correcting. Retail remains in a strong uptrend.
Commodity related issues are once again generally trading higher. Gold appears
to have made a transition with many issues here rallying out of “Bow
Ties” (email me if you need the rules). Most other metals also appear
to have turned the corner. Energies have been trending nicely higher and could
set up soon on a pullback. On the downside, major drugs appeared to have rolled
over. Biotech also looks like it could be rolling over.Â
So what do we do? The S&P continues to
trade mostly sideways. The Nasdaq still looks poised to rally out of a pullback
but could run into trouble when at the 2100 resistance level. As implied above,
the sector action remains generally positive. Therefore, all things considered,
continue to focus on the long side but wait for entries since market hasn’t
shown much follow through as of late.Â
Lately, I haven’t been seeing that many meaningful setups.
Therefore, no setups tonight.
HousekeepingÂ
I’m beginning to catch up on emails. If you requested
anything over the last week or so, you should receive a reply soon. Thanks for
your patience!Â
FYI, early entries and exits were discussed usingÂ
recently mentioned Autodesk
(
ADSK |
Quote |
Chart |
News |
PowerRating) during last week’s audio/visual
presentation. Email me if you need links to this and the prior shows for the
past year (covering topics such as scanning, sector analysis,
money/position management, psychology etc…).   Â
Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. Learn my newest and most advanced version of my Bow
Ties Strategy. Click
here for details.