Re-test Of Lows
On Friday, the Nasdaq opened flat and chopped around.
Then, late in the day, it sold off to close poorly.
Friday’s action suggests that a trip the recent lows (a),
around 1973, is likely. If it drops below that, the April lows could be the next
downside target.
The S&P also sold off to
close poorly. This action suggests that the recent lows (a), around 1200, will
be challenged.
So
what do we do? In light of the action in the indices, it seems that the focus
should be on the short side until conditions improve. Use last week’s high in
the indices as a reference point.Â
On
the short side, the Spyders
(
SPY |
Quote |
Chart |
News |
PowerRating) and Q’s
(
QQQ |
Quote |
Chart |
News |
PowerRating) may be worth considering
on follow through to the downside with last week’s lows being a potential
(first) target to the downside and last week’s highs being a logical area for
protective stops.
Plug
Power
(
PLUG |
Quote |
Chart |
News |
PowerRating) looks poised to resume its meltdown out of a Bow
Tie.
Echostar Communications
(
DISH |
Quote |
Chart |
News |
PowerRating),
mentioned Thursday night and on the Pullbacks
Off Lows List, still looks vulnerable.
And
The Winner Is…
Today’s
“no tickie, no tradie” award goes to ICN Pharmaceuticals
(
ICN |
Quote |
Chart |
News |
PowerRating),
mentioned last night as a potential long and creamed today. Fortunately, it
didn’t trigger. Wait for entries.
Have a great weekend and best of luck with
your trading on Monday!
Dave Landry
Questions? Comments? Drop me a
line at sentivetradingco@prodigy.net
P.S. Reminder: Protective stops on
every trade!
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