Nadaq Breaks Out!–Is It Time To Buy Tech?
On Wednesday, the Nasdaq opened firmer but then began to drift
lower. It found its low by mid-day and began to drift higher. Then, after some
zig-zags on the Fed announcement, it rallied nicely. Although it pulled back
going into the close, this action was enough to break it out of its trading
range. Hallelujah! Â
The S&P put in a somewhat similar performance. So far,
it remains in a trading range.Â
So what do we do? Okay, the Nasdaq broke out.
Although I’m excited, let’s not start kissing each other just yet. Follow
through will be key. If it can continue higher, then I think tech could be the
way to go–on the first pullback. Also, some confirmation from the P’s (S&P
500) would be nice! Until then, put together your shopping list but don’t get
too antsy. For now, stick with those issues that can trade contra to the indices
such as commodity related issues (provided of course, they are in trends).
As far as setups, Eog Resources
(
EOG |
Quote |
Chart |
News |
PowerRating), in the
strong independent oil & gas sub-sector (a), looks poised to resume its accelerating uptrend out of a pullback.
As mentioned recently: If you’re new to momentum based swing trading and would
like more information (e.g. on the basics such as trend, entries, money
management etc…), email me and I’ll be happy to send the primer section
from my second book.
Best of luck with your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
Click here to learn
more, or to order..Â
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