Sectors Worth Watching
On Wednesday, the Nasdaq essentially chopped back and forth
in a fairly narrow range. This action keeps it well above its recent trading
range and near the new 2003 highs (hit on Tuesday).
The S&P put in a similar performance.
It appears to be bumping up against minor resistance in the
920 area.
So what do we do? The sector action remains encouraging.
Sectors in uptrends and near/at multi-month highs include: (but not limited to)
banks, broker/dealer, homebuilders, insurance, HMOs, biotech, retail and
Internet. Other sectors such as defense and telecom are holding their recent
breakout levels. Looking to the indices, they remain somewhat overbought.
And, as mentioned above, the S&P appears to be bumping up against minor
resistance. Further, the VIX* continues to remain near multi-month lows but
fortunately, is not stretched away from its moving average. Therefore, all
things considered, I still think that momentum favors the upside. So, focus on
the buy side but continue to be vigilant with your money management.
Looking to potential setups, Legg Mason
(
LM |
Quote |
Chart |
News |
PowerRating), in the
aforementioned strong broker/dealer sector, looks like it has the potential to
resume its uptrend out of a Trend Pivot Pullback.
Best of luck with your trading on Thursday!
Dave Landry
*Once again, email me if you need some materials on how to interpret
the VIX.
P.S. Reminder: Protective stops on
every trade!
“….. It was super book and helped me quite a bit orchestrate many of the individual tools and rules I had been reading about into an integrated trading strategy. Anyhow, thanks for great book and great web site…”
Marty
