Modus Operandi
Each evening we focus
on the most interesting aspects for the upcoming trading
day. The comments are based on observations of the nightly
updates of the Stocks/Sectors and Market Bias pages. They
are provided for educational purposes only and are not
intended to be direct trading advice. Also, keep in mind
that these remarks are made up to 12 hours in advance of the
market’s opening. Therefore, overnight events may alter the
outcome of these observations.
Trader’s
Galleria has recently added more products. Check it out and pre-order my upcoming book on swing
trading at a 20% discount while you’re there (No shame is my middle name).
On Monday, the Nasdaq lapped lower (a) based on an analyst downgrade of Cisco.*
The index tried to get back to even but stalled out and sold off all morning. It then grinded higher most of the afternoon but ran out of steam and closed
poorly (b).
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The S&P faired much better. It’s now within spitting distance of its recent
high (a), which also corresponds with overhead resistance.
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The action in the S&P is somewhat encouraging.
Getting through the overhead resistance might not be too easy though.
The good news is there are a few more
speculative issues that the database began to spit out tonight (Monday). This
suggests that things might be improving under the hood.Â
For now though, I think sticking with more
defensive issues on the upside and speculative issues on the downside remains
the modus operandi (I’m getting more creative in how I repeat myself).
Looking
to potential setups, ICN
Pharmaceuticals
(
ICN |
Quote |
Chart |
News |
PowerRating), mentioned forever, still looks like it has the
potential to rally out of a pullback.
IDEC
Pharmaceuticals
(
IDPH |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, appears to be testing support near the area of its recent
breakout (a). The fact that it’s holding suggests that its uptrend remains
intact.
Protein Design Labs
(
PDLI |
Quote |
Chart |
News |
PowerRating), also on
the Pullbacks
Off Highs List, has formed a quasi-high level cup-and-handle.
On the short side, PC Connection
(
PCCC |
Quote |
Chart |
News |
PowerRating), mentioned recently
and on the Trading
Where The Action Is List, still looks poised to resume its meltdown.
Best
of luck with your trading on Tuesday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
*See Friday’s commentary. Isn’t that ironic? Don’t you think? (good thing you
can’t hear me sing)