More Time On The Side
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 Thursday, the Nasdaq gapped higher on the open but this
turned out to be its high. It then slid to close poorly to form an outside day down.
The market continues to correct by trading sideways. This
action appears to be setting up a trading range between approximately 2100 and
2200. If broken to the downside, 2000, which corresponds with the 50-day moving
average, will be a likely target support zone.
So what do we do? It seems that there are still good setups
on the long side. However, it light of Thursday’s weakness, just make sure
you wait for entries on your setups. This simple rule may keep you out of a
potential losing trade.
Looking to potential setups, Expedia
(
EXPE |
Quote |
Chart |
News |
PowerRating), mentioned
Wednesday night, still looks poised to resume its strong up trend. Just wait for
follow through to the upside here (i.e. no tickee, no tradee) as it did close
poorly.
Nucor
(
NUE |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, looks like it has the potential to resume its strong up trend.
Sonus Networks
(
SONS |
Quote |
Chart |
News |
PowerRating), on the Trading
Where The Action Is List, looks like it has the potential to rally out of a
loosely formed cup and handle.
Agil Software
(
AGIL |
Quote |
Chart |
News |
PowerRating), mentioned recently, still looks
like it has the potential to rally out of a
cup and handle like formation.
Other
Several of you have asked me to return to putting
“walk throughs” in my column. I promise I’ll return to doing this as
soon as I recover from sunburn and cervezas (you didn’t expect me to drink the
water, did you?). In the meantime, you might want to read Walking
Through Trades From My Stock Outlook.
Best
of luck with your trading on Friday!
P.S. Reminder:
Protective stops on every trade!
“…Thanks for writing a great book. That’s basically how I’ve come to
learn swing trading…..”
K. W.
No risk, 30-day, money
back guarantee.