More Opportunities On The Short Side
On Wednesday, the Nasdaq opened lower and continued lower
throughout most of the day. Then, late in the afternoon, it bounced back.
However, this wasn’t enough to keep it out of the minus column. The bottom of
its recent pullback, circa 1260 is a possible target here.
The S&P put in a similar performance. The bottom of its
pullback, around 805(a), is a potential target here too.
So what do we do? In addition the the indices setting
up as a pullback from lows (especially the S&P), many sectors are also set
up as pullbacks from lows. These include, but not limited to, retail,
broker/dealer, utilities, transports, banks and telecom. Further, tonight we
have a TRIN Reversal Sell signal (as usual, email me if you need the
rules*). True, I would prefer to have multiple sell signals, but as Mick says,
“you can’t always get watcha want.” Therefore, considering the above,
focus on the short side.
Looking to potential setups, Merrill Lynch
(
MER |
Quote |
Chart |
News |
PowerRating), in the weak
national brokerage sector (a), looks like it has the potential to resume its downtrend out of a
pullback.
Political Thought Of The Day
With all the recent talk about Turkey. Once has to wonder:
If Iraq invades Turkey from the rear, would Greece help?
Best of luck with your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
*My main email server was down for much of
Wednesday. I should be able to catch up over the next few days.
“…. Feel free to quote me, the book is fantastic. It is written for traders who want to know the real basis of
successful trading. No glory stuff. No hero tales. Plain old sound advice which is a rare commodity in this business….”
Mike Marlow
