Not The Mother?
On Friday, the Nasdaq opened weaker but quickly reversed.
It then chopped and drifted but did manage to close well.
The S&P put in similar performance.
So what do we do? If this is the mother-of-all
reversals, it’s odd that we didn’t see much follow-through on Monday. This leads
me to believe that the indices have the potential to roll back over. Therefore,
watch for stalling action over the next few days. As far as sectors to watch,
there are a plethora of sectors setting up on the short side. These include (but are not limited to): homebuilders, utilities, golds, auto parts, retail and defense.
Looking to potential setups, Northrop Grumman
(
NOC |
Quote |
Chart |
News |
PowerRating),
in the aforementioned weak defense section, looks poised to continue its
rollover out of a Bow Tie.
Other
Borg Warner Automotive
(
BWA |
Quote |
Chart |
News |
PowerRating), mentioned recently, looks
like it has the potential to make a good money management example. I’ll follow
up on this one later this week.
Best of luck with
your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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