Rising Bottoms?
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
market’s opening. Therefore, overnight events may alter the
outcome of these observations.
Trader’s
Galleria has recently added more products. Check it out and pre-order my upcoming book on swing
trading at a 20% discount while you’re there (No shame is my middle name).
On Tuesday, the Nasdaq lapped higher (a) and kept on going for a solid trend
day higher. In spite of some late-day gyrations, it was able to close near its
high (b).Â
As of late, there hasn’t been any price persistency (follow-through) except, of course, to
the downside. So it will be interesting to see if we can rally for more than a few days.
If so, it will confirm rising bottoms.
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The S&P also had a decent day. It pushed higher into overhead resistance and is just
shy of its 50 and 200–day moving averages–which have now converged (a). If this index can
get above these levels and above the top of recent resistance (1460), it will bode well
for stocks.
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So what do we do? Like Monday night, there continues to see more stocks in momentum
moves that are setting up. This suggests its ok to nibble on the long side.
However, you might what to still focus mostly on the more defensive issues just
in case.
Looking
to potential setups, OSI
Pharmaceuticals
(
OSIP |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, has pulled back and revversed near the level of its last
breakout. This suggests its uptrend remains intact.
HNC Software
(
HNCS |
Quote |
Chart |
News |
PowerRating), also on
the Pullbacks
Off Highs List, looks poised to rally out of its first pullback since its
recent melt up. Acxiom Corp.
(
ACXM |
Quote |
Chart |
News |
PowerRating), on the same list, is a similar
pattern.
NetIQ
(
NTIQ |
Quote |
Chart |
News |
PowerRating), yet another pullback, has
formed a Trend Pivot Pullback. The stock looks like it has to potential to
resume its uptrend, especially if it can take out Friday’s pivot high (90).
Best
of luck with your trading on Wednesday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
P.P.S. Happy Halloween! or Tuesday!
(for those who don’t celebrate it)