Play The Bounce, But…

August 9, 2001
Dave Landry

On Thursday, the Nasdaq opened flat and chopped
around all day. The good news is that it recovered after probing down
to its recent lows.

The S&P didn’t
quite get to its recent lows, but its close enough to claim that it
found support.

So what do we do?Â This fact that the market
found support where it should have combined with a CVR 1 and TRIN
Reversal buy signals suggests that we could see a tradable
bounce over the next few days. Again, remember your sticky note from
last night: “we’re still in a bear market/” Therefore, keep
it light and above all, wait for entries.Â

Looking to potential
setups, Nanometrics (NANO)
looks like it has the potential to rally out of a deep pullback.