More Consulting
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.
On Friday, the Nasdaq lapped higher and appeared to be off
and running. However, it found high (a) early in the afternoon and sold off the
rest of the day. This action has it closing near its open (b).
Once again, the bottom-pickers were out en masse calling
for a bottom. Today’s argument: Thursday’s heavy volume.Â
Based on all the bottom-picking going on, I decided I
better check back with my team of junior analysts (see Thursday’s
commentary). When shown the daily chart of the Nasdaq, they chose
“down” (and then asked for ice cream for all their hard work).Â
Be patient. We’ll eventually find bottom. It just takes more than a day.
One of my personal gauges of when to trade is how easy it
is for me to find setups. On those nights when I have a legal pad full of
tickers from my analysis, I know things are going to be good. On other nights,
when I only have a few tickers scribbled down, I know that’s its probably not a
good idea to try to make something happen. Tonight was one of those nights. I
had difficulty finding anything worthwhile. The shorts are oversold and not
much is setting up on the long side.
Considering the above, here it goes:
I normally don’t talk about stocks less than $10 per share
as they don’t normally offer opportunities for the swing trader. With that said,
and if you are willing to take a longer-term view, several gold stocks are
beginning to show up on Strongest
Stocks Under $10. As an example, Placer Dome
(
PDG |
Quote |
Chart |
News |
PowerRating) has formed a
low-level cup-and-handle.
On the short side,
Providian Corp.
(
PVN |
Quote |
Chart |
News |
PowerRating), mentioned Thursday night and on the Pullbacks
Off Lows List, still looks poised to resume its downtrend.
Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating),
also on the Pullbacks
Off Lows List, looks like it has the potential to resume its strong
downtrend. Wait for follow-through to the downside though, as it was up on
Friday.
Best
of luck with your trading on Monday!Â
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
P.P.S. Still shameless: Check out my upcoming book
on swing
trading at a 20% discount.Â
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.