Martha Market

  • May 31, 2001
  • Dave Landry

 

On Thursday, the Nasdaq lapped higher and rallied
early on. Then, after a deep pullback, resumed its rally. However, it
began to stall out late in the day, and closed off of its highs.

The fact that Thursday’s low/the bottom of its
recent range held, is, to quote Martha: “a good thing.”

 

It’s also a good
thing that the S&P held the bottom of its range.

Tonight (Thursday),
we have 4 indicators pointing higher on the Market Bias page. This,
combined with an oversold market and a two-day old TRIN
Reversal buy signal, suggests that
we could see a bounce in here. I would prefer to see the CVR 1 signal
combined with an overbought VIX
indicator,
such as a CVR III buy signal. Also, the market doesn’t always set up
in a perfect fashion–you don’t always get a perfect buy signal right
after a perfect sell signal (see recent archives). If it were that
easy, we’d all be rich.

So what do we do? Based on the above, I’m
positive on the market but see no reason to bet the farm (my
neighbor’s bull and cow will thank me for that). Therefore, focus on
the long side, but nibble only.

Medarex (MEDX) 
looks poised to resume its uptrend out of a pullback. Just don’t
overstay your welcome here, as there is overhead resistance above 30
(not shown).

 

 

Idexx Laboratories (IDXX),
mentioned Wednesday night and on the Pullbacks
Off Highs List, looks poised to rally out of a Trend Pivot
Pullback.

 

On the short side, Albertsons (ABS),
mentioned Wednesday night and on the Pullbacks
Off Lows List, still looks vulnerable.

Other

We saw a nice move in
(
GNSS |
Quote |
Chart |
News |
PowerRating) today. When you
catch such moves, make sure you lock in a piece and move your stop to
breakeven on your remaining shares (i.e. 2-for-1 Money Management,
a.k.a. “Grandma” Money Management).

Best of luck with
your trading on Friday!

Dave
Landry

P.S. Reminder: Protective stops on
every trade!

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