On The Bright 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
market’s opening. Therefore, overnight events may alter the
outcome of these observations.
I’m pleased to announce that on Friday, we
launched the Traders
Galleria. Check it out, there you’ll find books, software, trading courses,
computers and just about everything else a trader needs to be successful. You
can even pre-order my upcoming book on swing
trading at a 20% discount.
On
Friday, the Nasdaq lapped lower (a) and proceeded to sell off. Then the usual
mid-day drift lead to late-day selling. There was bit of a bounce going into the
close but not enough to keep the index from closing poorly (b).Â
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After a day like Friday, you probably don’t
need me telling you how bad it was. Therefore, I thought I’d look for a few
bright spots. It looks like the big-cap telecoms like AT&T
(
T |
Quote |
Chart |
News |
PowerRating) and Qualcom
(
QCOM |
Quote |
Chart |
News |
PowerRating) (see below) are holding up above their major bottoms. Oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating),
major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating), and utilities
(
$UTY.X |
Quote |
Chart |
News |
PowerRating) remain extremely
strong. And there continues to be pockets of strength in
technology with several stocks remaining in strong uptrends and pullbacks.
face=”Arial, Helvetica”>Looking to potential setups, PP&L Resources
(
PPL |
Quote |
Chart |
News |
PowerRating),
mentioned Thursday night and on the Pullbacks
Off Highs List, closed well on Friday and looks poised to resume its strong
uptrend.
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In the energies, Anadarko Petroleum
(
APC |
Quote |
Chart |
News |
PowerRating),
also on the Pullbacks
Off Highs List, looks poised to rally out of a four-bar pullback and
Constellation Energy Group
(
CEG |
Quote |
Chart |
News |
PowerRating) formed a bullish outside day in a pullback.
Looking to those few tech bright spots
mentioned above, Cirrus Logic
(
CRUS |
Quote |
Chart |
News |
PowerRating), mentioned recently, still looks like
it has potential. PeopleSoft
(
PSFT |
Quote |
Chart |
News |
PowerRating) is a three-bar pullback of a stock in a
strong uptrend. And Sipex
(
SIPX |
Quote |
Chart |
News |
PowerRating), on the Proprietary
Momentum List, is holding up well at higher levels and looks poised to
break higher.
For you breakout players, or in this case,
bottom fishers too, Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating), on the Stocks
Crossing Above Their 50-day Exponential Moving Averages on Double-Volume List,
appears to be breaking out of an extended low-level base.
On the short side, UPS
(
UPS |
Quote |
Chart |
News |
PowerRating), mentioned
Thursday night, still looks vulnerable.
Allegiance Telecom
(
ALGX |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Lows List, looks poised to re-test its recent lows.
Best
of luck with your trading on Friday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!