Positive Action
On Thursday, the Nasdaq gapped higher and continued higher
throughout the day. This action has it closing well and approaching multi-month highs.
The S&P finally decided to play catch-up to the Nasdaq. It
too put in a solid rally. This has it near the top of its recent trading range.
This action is a positive since just yesterday it looked like it had the
potential to take out the bottom of its trading range.
Many tech sectors, like the Nasdaq itself, did well on
Thursday.
Software appears to be rallying out of pullback.
Ditto for Telecom.
And the Semis…
And Internet also appears to resuming its uptrend from lows
out of a pullback.
The bond market also seems to believe it (thanks a million, Derrik!).
So what do we do? The fact that the S&P finally decided
to play catch-up, combined with the sector and bond action mentioned above, is a
positive. I’d like to see the Nasdaq take out its multi-month highs and
the S&P clear its trading range decisively before getting too excited.
However, you can’t argue with the above. If it keeps on keeping on, we should
see setups on the long side soon (especially in technology).
Looking to potential setups, in spite of the above, the HMOs and Hospitals still
look poised to resume their meltdown.
Considering the above, Community Health Systems
(
CYH |
Quote |
Chart |
News |
PowerRating),
mentioned recently, still looks like it has the potential to resume its
downtrend out of a pullback/Explosion Gap Pivot (see commentaries for more
details).
Best of luck with
your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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