More Blue Arrow Trading
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
markets opening. Therefore, overnight events may alter the
outcome of these observations.
On
Friday, the Nasdaq gapped higher on the open (a) but quickly found its high. Then,
after chopping around a bit, it lost nearly 3% of its value. This had it negative on
the day and below the 1900 level. However, by early afternoon it was able gain footing
and rallied nicely the rest of the day. This action has it closing well but
wasn’t strong enough to put the index above its open.
So what do we do? I guess if I
were smart I’d be
calling a bottom in here–like all the smart guys on TV. But, I’m not that smart. I’m just a trend following
moron. So, I’ll continue to follow the big blue arrow. With that said, Friday’s action seems to do nothing more than set up some
nice shorts. As I’ve been preaching, I will be wrong
on the last pullback from lows, but so far, this hasn’t been a problem.
Looking to potential setups, Comverse Technology
(
CMVT |
Quote |
Chart |
News |
PowerRating),
on the Pullbacks
Off Lows List, appears to be stalling out near its recent highs.
PMC Sierra
(
PMCS |
Quote |
Chart |
News |
PowerRating) (I know, according to the media the
semis are going to lead us to the Promised Land), gapped to new two-week highs
but reversed to close poorly. This suggests that it has another trip to its old
lows left in it.
Best
of luck with your trading on Monday!
P.S. Reminder:
Protective stops on every trade!
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Dr.
Alan W.
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