Now We’re Cooking With Gas
On Tuesday, the Nasdaq gapped higher and kept on going.
Then, after some mid-day backing and filling, it resumed its rally to close well.
This action has it closing right at its 50-day moving average.
The S&P also mounted the mother-of-all rallies. This
action puts it above its 50-day moving average and within spitting distance of
its 200-day moving average.
So what do we do? After the bell, Intel announced earnings
in line with estimates. The market seems to be responding well to this in after-hours trading. This, combined with Tuesday’s strong close from an
oversold condition suggests that we will see continued upside on Wednesday. There
are a few caveats though. The market will likely gap higher. And, believe it or not,
the market is already becoming overbought. However, don’t fight it. Focus on the long side,
just let stocks open first in light of the potential of a “pop up”
opening.
Looking to potential setups, Cigna
(
CI |
Quote |
Chart |
News |
PowerRating), in the strong
health services–health care plans sector, looks poised to continue its uptrend
out of a pullback.
Email Of The Day
Last night’s comments about a trader leaving due to the
recent difficult environment seemed to spark a few emails. Most, as expected,
were thanking me for the comments. Thanks for the emails. However, to my
surprise, I received the following (unedited):
Dave,
I’ve had enough of the whining from the “It’s so tough right now” crowd (not you Dave or TM, everyone on this site rocks). Give me a break.
Accept responsibility for your lack of performance, and figure out how to do better. The “it’s so tough right now” crowd was lucky enough to catch one
of the markets’ manias, and get really rich. Now there SCARED to give back part of
there wealth. Hey, there even hoarding gold!
Being a good trader is not enough, you have to be great, and then strive to be better. I thought one of the unspoken rules for a speculator was, you
don’t Whine, especially about the markets. Dave, don’t offer comfort to these people, scold them. Besides, the crowd’s
limited, negative outlook is bad for us other traders. If you can’t find your “Eye of the Tiger,” GET OUT OF THE MARKETS, before someone takes your
money and robs your Gold.
The ramblings of one trader,
(name withheld)
P.S. I enjoy your columns.
Best of luck with
your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…..I still feel that your book is the best book on the subject and
offers me the best methodology for swing trading. In short, your method is outstanding
Michael M.
No risk,
30-day, money back guarantee.