Look To Get Aggressive On The Long Side But Wait For This
On Friday, the Nasdaq sold off hard throughout the morning
and then drifted sideways-to-lower throughout the afternoon. This action has it
closing poorly.
Ditto for the P’s.
So what do we do? I like the fact that we are
finally seeing some overall corrective action backed up by news events. Look to
get aggressive on the long side but wait for entries!
“Still Crazy After All These Years” (Or
“Insane In The Membrane” For You More Hip Folk)
“Dave,
Thanks for the tip about the retailers going higher. I will not use it though. With the deficit increasing, interest rate ready to explode, housing market ready to implode and our federal debt going through the roof, I think you are insane. Good Luck”
Jim Fahnhorst
As far as setups, the Retail HOLDRs
(
RTH |
Quote |
Chart |
News |
PowerRating) still look
like they have the potential to rally out of a pullback. Wait for an entry
though, since they sold off fairly hard on Friday.
Essex Corp.
(
KEYW |
Quote |
Chart |
News |
PowerRating), mentioned Thursday night and in the strong
defense sector (and let’s face it, what good is a weak defense?), still looks poised to resume its
accelerated uptrend out of a
pullback.
Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
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