Of Recent Preachings
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
market’s opening. Therefore, overnight events may alter the
outcome of these observations.
On Wednesday, the Nasdaq lapped slightly higher (a) but
that was about all it did higher. It then slid all day and closed on its low (b)
for a solid trend day lower.
 This action negates any of the recent series of
higher lows (c). And it suggests that another trip to the old lows may be
in the cards–without even making it to the 50-day moving average/recent
resistance.
Once again, this market can’t get out of its own way.
The S&P stalled
out at recent resistance, which also corresponds to the well-watched 50 and
200-day moving averages (a).
So what do we do? Obviously, the market remains vulnerable.
Therefore, I suppose I’ll have to regurgitate my recent sermons: Stay defensive
and consider a short or two.
Looking
to potential setups, AFLAC
(
AFL |
Quote |
Chart |
News |
PowerRating) (I just made you do the duck
thing), in the strong insurance sector
(
$IUX.X |
Quote |
Chart |
News |
PowerRating) and on the on the Pullbacks
Off Highs List, looks like it has the potential to continue its uptrend.
Just wait for follow-through to the upside (for it to trade above its prior 2-3
bar highs) as it did close poorly on Wednesday.
On the short side, Inktomi
(
INKT |
Quote |
Chart |
News |
PowerRating),
mentioned recently and on the Pullbacks
Off Lows List, still looks poised to resume its downtrend, especially if it
can take out Tuesday’s pivot low (a).
Noven Pharmacetuicals
(
NOVN |
Quote |
Chart |
News |
PowerRating), on the Proprietary
Implosion List, looks poised to resume its meltdown.
Cooper Cameron
(
CAM |
Quote |
Chart |
News |
PowerRating), mentioned recently,
still  looks poised to resume its downtrend.
Best
of luck with your trading on Thursday!Â
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
P.P.S. I forgot to plugÂ
my upcoming book on swing
trading at a 20% discount, found only at Trader’s
Galleria. Oh well, maybe tomorrow night.