Pull Up A Chair

On Tuesday, the Nasdaq chopped around before
ending lower. Not too much to write home about–choppy, light, summer
doldrums type trading.

 

The S&P didn’t do
a whole lot either.

 

So what do we do? When
we last left off, it appeared that the market was in bounce mode.
Since then, it appears that the market has now run out of steam. Also,
tonight (Monday) we have a TRIN Reversal signal. There are no
supporting signals (e.g. CVRs) so I don’t view this as a major signal.
However, it should be respected nonetheless. Also, as I flipped
through hundreds of charts tonight, I noticed that most stocks remain
in downtrends. And, many of those that in uptrends are showing signs
of topping. Therefore, based on the above, the logical play for
Tuesday is on the short side. However, due to the choppy/light volume
nature of the market, you might want to keep it light.

Looking to potential setups, OSI Pharmaceuticals
(OSIP)
looks poised to resume its downtrend out of an inverted cup and
handle. For those that suffer from long-only disease, I turned the
chart upside down so it’ll look poised to rally.

 

Bea Systems (BEAS)
looks poised to resume its strong downtrend out of a pullback from
lows.

Special thanks to Duke for filling in while I was
away.

Best of luck with
your trading on Tuesday!

Dave Landry

sentivetradingco@prodigy.net

P.S. Reminder: Protective stops on
every trade!

“..Very
straightforward. Nicely done. My favorite chapter is “More
Thoughts”.  The more experienced I get, the more I learn
from reviewing the really simple stuff…” 

Dirk
V.

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