Other Than These Two Things, I’m Pretty Much A Bull
On Thursday, the Nasdaq traded back-and-forth in a fairly
narrow range. It did manage to close (barely) in the plus column though. This
action has it stabilizing (so far) in its recent pullback and keeps it set up as
a Double Top Knockout.Â
The S&P also traded back-and-forth. However, it wasn’t
able to make it to positive territory. Â
It remains below its 200-day moving average.
Resistance here remains around the 1130 level.Â
So what do we do? I’m still concerned about
the action in the Dow. And now, the S&P is beginning to concern me a bit
too. On a closing basis, it hasn’t gone anywhere in over a month. On the bright
side, tech continues to hang in there. The semis bounced back after trading
lower. Other tech areas put in similar performances. This stabilization of their
pullback (like the Nasdaq itself) is creating some setups in software, telecom,
and the aforementioned semis. All things considered, I still think the long side
can be played. Just make sure you are waiting for signs of strength (or at least
entries) before looking to enter.
As far as setups, First Marblehead
(
FMD |
Quote |
Chart |
News |
PowerRating), mentioned
Wednesday night, still looks like it
has the potential to resume its persistent uptrend out of a pullback. However,
continue to wait for an entry since it, like many financials, ended lower on
Thursday.Â
Best of luck with your trading on Friday!Â
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. Learn my newest and most advanced version of my Bow
Ties Strategy. Click
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