Pulling Back
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
markets opening. Therefore, overnight events may alter the
outcome of these observations.
On
Wednesday, as one would expect, the Nasdaq drifted for most of the day while
waiting on the Fed. Then on the announcement, after some serious gyrations, it sold off to
close poorly (a). This action has
the index short of its recent highs (b) and suggests that a trade back to the
50-day moving average (c) is in the cards.
So what do we do? I‘m
still positive on the market but I’d keep it light on the long side until we
see how far this sell off will take us. If it stabilizes at the fifty, it might again set up some decent longs.
Homestore.com
(
HOMS |
Quote |
Chart |
News |
PowerRating) has formed a low-level cup and handle and a huge
big picture double bottom on the weekly.
Meta Solv
(
MSLV |
Quote |
Chart |
News |
PowerRating) has also formed a decent low level cup and handle. I
realize that the purist may take issue with the knockout move (a) in the handle,
but I actually like that action.
On the short side, Genentec
(
DNA |
Quote |
Chart |
News |
PowerRating), mentioned recently,
formed a bearish outside day down in a pullback from lows. This suggests its
downtrend remains intact.
Best
of luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!
“Love the book….Simple IS
better.”
Harlan S.
No risk, 30-day, money
back guarantee.