Ready To Rock?
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.
Dave Landry is enjoying the last day of
his vacation in beautiful Cancun, Mexico. He will return tomorrow on Wednesday,
May 9. In his absence this column will be written by TradersWire’s Director of
News Duke Heberlein.
On Tuesday, the Nasdaq gapped open and headed south from the
get-go, hitting low just after noon. It then rebounded and rose throughout the
remainder of the day, gaining 25 points at the close, or another 1%.
So where do we go from here? Someone wiser than myself once said
“if it isn’t going down, it may be going up”. While the last couple of
days have been kind of choppy, the path of least resistance looks to be to the
upside for now. (See big blue arrow). Also, I am seeing the up trending indicator
lists grow bigger, adding new issues while the numbers are dropping on the down trending
lists. Therefore, I will concentrate on the long side again, with a
couple of shorts waiting in the ‘pen in case they are needed.
Looking ahead to Wednesday’s setups, Astro Power
(
APWR |
Quote |
Chart |
News |
PowerRating),
off the Pullbacks From Highs
List, is hitting the top of its flag pattern.
Travelocity.com
(
TVLY |
Quote |
Chart |
News |
PowerRating), from the same list, is a
pullback/second stage Bow Tie.
I also like Avnet
(
AVT |
Quote |
Chart |
News |
PowerRating), from the Momentum
10 Technology List, as a Bow Tie.
With an eye to the short side, Adolph Coors
(
RKY |
Quote |
Chart |
News |
PowerRating), off
the Proprietary
Implosion List, appears to be resuming its meltdown out of a pennant at its
lows.
Finally, I still like Impath
(
IMPH |
Quote |
Chart |
News |
PowerRating), mentioned last
night, as a Bow Tie/Trend Pivot pullback off its lows.
Best of luck with your trading on Wednesday!
P.S. Protective stops on every trade.
P.P.S. Dave will be returning tomorrow. You will get one last
chance for a break tonight, as my final act will be to once again refuse to plug
my friend’s excellent book.