Reversal From Support
On Wednesday, the Nasdaq sold off and chopped
around early in the day. Then, late in the day it mounted an
impressive comeback. This action has it closing well.
The good news is that it bounced nicely after
testing the 200-day moving average/prior support.
The S&P also mounted a decent turnaround.
So what do we do? I’m
encouraged by Wednesday’s action. The fact that the market reversed as
support was approached is a positive. Follow through will be key,
though. For now, look to play both sides until we get that
confirmation.
Looking to potential
setups, Mentor Graphs (MENT),
mentioned recently, still looks like it has the potential to rally out
of pullback–(note: the pivot is now too far away, trade it as you
would normally trade pullbacks). Just make sure you wait for an
entry,
as it was down again on Wednesday.
On the short side,
Flextronics (FLEX),
mentioned Monday night, still looks vulnerable. Just make sure you
wait for an entry,
as
it was up on Wednesday.
Examples?
For those of you
wondering where the examples (i.e. "walk throughs") have
been, there
simply hasn’t been anything worth mentioning as of late. Don’t get
discouraged though, I’m sure as the volume returns we’ll have plenty
to discuss in the near future.
Best of luck with
your trading on Thursday!
Dave
Landry
P.S. Reminder: Protective stops on
every trade!
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