Reasons Why I Remain Bullish
Looking to the indices, on Friday, the Nasdaq opened flat,
dipped, soon began to rally, but quickly found its high in began to sell off. It
stabilized by mid-day and then chopped around in a narrow range for the rest of
the day.
The S&P also chopped back and forth in a fairly narrow
range.
So what do we do? Well, the indices didn’t
rally but they certainly didn’t come apart either. This action keeps the S&P
set up as a pullback in a persistent trend. And, most sectors remain constructive
like the overall market itself. Therefore, continue to focus on the
long side. Once again, the S&P Spyders
(
SPY |
Quote |
Chart |
News |
PowerRating) still look interesting.
However, as usual, wait for entries just in case the market fails to accommodate.
On the short side, continue to wait for more of a bounce in weaker areas such as
gold and the homebuilders before looking to position (or add to positions)
here.
Looking to potential setups, the Nasdaq Biotech Ishares
(
IBB |
Quote |
Chart |
News |
PowerRating),
mentioned Thursday, still look like they have the potential to resume their persistent uptrend out of a
pullback.
Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S.
In February I’m having a small, exclusive three-day swing trading seminar and I would like you to attend.
Click
here.