Pop Up Tuesday
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 Monday, the Nasdaq lapped slightly higher(a) and then
proceeded to chop around all day. It finished off its highs and below the close
(b).
After the close, there was more election news. This time,
in favor of Bush. Based on this, the futures are rallying in after-hour
trading. This will likely give us a pop-up opening on Tuesday. Use caution
trading the open and the long side in general as one positive open does not make
for a market bottom.
Looking to potential setups, Becton Dickinson
(
BDX |
Quote |
Chart |
News |
PowerRating), on
the Momentum
10 Technology List, looks poised to break out of a high-level cup-and-handle-like formation.
Tricon Global
(
$YUM.X |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, looks poised to resume its recent strong thrust higher.
On the short side,
Sealed Air Corp.
(
SEE |
Quote |
Chart |
News |
PowerRating), on the Implosion
10 Technology List, looks poised to resume its meltdown.
Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating),
mentioned Friday as a potential short, was up sharply on Monday but remains in a
weak position. As always, wait for follow-through.
Best
of luck with your trading on Tuesday!Â
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
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