Sectors That Could Offer Opportunities
On Friday, the Nasdaq opened firmer and chopped sideways in
early trading. It then rallied sharply but quickly gave back all of its gains.
It found its low around mid-day and finally, generally worked its way higher throughout
the rest of the day. This action has it closing well.
The S&P was also all over the place until it gained its
footing in early afternoon trading.
So what do we do? The continued rally from oversold
suggests that we remain in bounce mode. So, should we run out and buy? I’m not
so sure. There are PLENTY of sectors that remain in downtrends (see below for a
sampling). Therefore, I think I’d use this opportunity to start putting together
a shopping list (or more appropriately, a selling list).
Looking to the sectors, as mentioned above, there are quite a few
sectors in sharp downtrends or rollovers that
could offer setups on a continued pull back. Some of which are the following :
Broker/Dealer
Insurance, especially the property & casualty
sub-sector.
Telecom
Looking to potential setups, Dupont
(
DD |
Quote |
Chart |
News |
PowerRating), in the weak
chemicals(a), looks like it has the potential to resume its downtrend out of a
pullback.
Best of luck with your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…. Feel free to quote me, the book is fantastic. It is written for traders who want to know the real basis of
successful trading. No glory stuff. No hero tales. Plain old sound advice which is a rare commodity in this business….”
Mike Marlow
