Only The Lonely
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
markets opening. Therefore, overnight events may alter the
outcome of these observations.
face=”Arial, Helvetica”>Check out my latest trading
lesson,
Structure With Volatility. If you don’t like it,
send me a nasty e-mail and I’ll debate you on it! (grin)
I
wish I had something exciting to write about the Nasdaq
today, but I don’t: There was more range-bound trading on
Friday.
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The
broader market fared worse, as poor action in the financials
dragged issues lower. Does this matter in Tech Land? You
certainly can’t ignore it. Therefore, you might want to
remain cautious as this situation unfolds.
By
the way, don’t believe anyone who tells you that this is an
easy environment to trade in. For every one issue that
follows through, nine issues chop around. So, on the
surface, it looks like all you have to do is to be in that
one issue. In reality, being in that one issue (out of 10)
is not so easy.
I
confirmed this with an unofficial survey of a few
professionals Friday morning. One claimed he was ready to
throw in the towel until this trading range was busted. So
if you’re getting chopped here and there, don’t feel lonely.
Looking
to potential setups, Affymetrix
(
AFFY |
Quote |
Chart |
News |
PowerRating), in the strong
biotech sector
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) and on the
From Highs List, looks poised to rally out of a
big-picture cup-and-handle.
Brocade
(
BRCD |
Quote |
Chart |
News |
PowerRating), on the
And Handle Patterns List, looks poised to rally out of
its first pullback since its run-up from the high 80s. Be
warned, though, that this one is risky and will likely
encounter overhead resistance near its old highs (around
160).
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For
you breakout players, Enzo Biochem
(
ENZ |
Quote |
Chart |
News |
PowerRating) on the
Momentum List, is in the second day of a pullback from a
fast move.
Also
for you breakout players, Vertex Pharmaceuticals
(
VRTX |
Quote |
Chart |
News |
PowerRating),
mentioned Thursday night, began rallying out a big-picture
cup-and-handle formation on Friday. Be warned, though: It
stopped just short of its prior high. Therefore, a better
play here might be to wait for the next pullback.
On
the short side, Circuit City
(
CC |
Quote |
Chart |
News |
PowerRating), mentioned recently and
on the
From Lows List, still looks vulnerable. Fastenel
(
FAST |
Quote |
Chart |
News |
PowerRating),
on the same list, has formed a triangle and looks poised to
resume its meltdown.
Best of luck with
your trading on Monday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!