More Shorting Opportunities Ahead?
On Tuesday, the Nasdaq lapped slightly higher but then sold
off for a solid trend day lower.
The S&P was also creamed for a solid trend day lower.
So what do we do? Even though the market is very oversold,
there are still quite a few stocks that remain set up as shorts. Most of these
are in the semiconductor and telecom areas. Therefore, look to play the short
side but watch a potential “pop down” opening. In other words, we
could bounce after a potential down opening.
Looking to potential setups, Teradyne
(
TER |
Quote |
Chart |
News |
PowerRating),
mentioned recently and in the vulnerable semi equipment makers, still
looks poised to continue its rollover.
ABGX Follow Up
Lately, I have been discussing a walk through on Abgenix
(
ABGX |
Quote |
Chart |
News |
PowerRating).
The stock has triggered a Bow Tie and provided an excellent money
management/trailing stop example. Further, the stock set up for a re-entry. If
you haven’t already done so, now might be a good time to review the archives.
When I last left off, I was discussing the potential for a re-entry (a) with a
protective stop above the recent highs (b). This area remains a good place for
the longer-term trader. For the swing trader, I have updated the chart with a
two-bar trailing stop (c). One last point, the recent lows (a) provided good
opportunities to take partial profits.
Best of luck with
your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“….Landry writes clear, lucid prose, and uses lots of examples. I like this book because of Landry’s simple approach. He shows many useful trading ideas instead of trading theory….. It’s a good introduction for a novice trader…..”
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