See Which One Gets Filled First

On Wednesday, the Nasdaq opened slightly higher
and chopped around. Then, late in the morning, an attempt to take out
Tuesday’s high failed. This sell off continued throughout the rest of
the day. 

This action has it closing poorly, and just above
key support.

 

The S&P also sold
off to close poorly. This action has it also at key support and
suggests that the head-and-shoulders top, mentioned recently, remains
intact.

So what do we do? Wednesday’s lack of follow
through from Tuesday’s reversal is disappointing. This puts me back in
skeptical mode. If the key support levels fail to hold, the markets
could head much lower. Therefore, I see no reason to get excited in
here until we see some follow through to the upside. Just in case, you
might want to start keeping an eye out for potential shorts.
Transition patterns such as Bow Ties will be the first to set up.

In looking to potential setups, there are a few
biotechs that “faked-out” on Wednesday, but might still be
worthy of a look–especially if they can take out Wednesday’s high.

Protein Design Labs (PDLI),
mentioned recently, still looks like it has the potential to resume
its strong uptrend. However, as implied above, wait for an entry.

Imclone Systems (IMCL),
also mentioned recently, is a somewhat similar pattern.

Best of luck with
your trading on Thursday!

Dave
Landry

P.S. Reminder: Protective stops on
every trade!

“…Wonderful
and especially clear book… I’ve been enjoying it and integrating
it’s techniques in my trading…”

No risk,
30-day, money back guarantee.

 

On Wednesday, the Nasdaq opened slightly higher
and chopped around. Then, late in the morning, an attempt to take out
Tuesday’s high failed. This sell off continued throughout the rest of
the day. 

This action has it closing poorly and just above
key support.

 

The S&P also sold
off to close poorly. This action has it also at key support and
suggests that the head-and-shoulders top, mentioned recently, remains
intact.

I was hoping that we
would see bounce from the oversold condition and key support,
especially with option expiration just a few days away. I guess today
I had to re-learn the lesson that if you hope in one hand and…,
well, you know the rest.  

So what do we do? Wednesday’s lack of follow
through from Tuesday’s reversal is disappointing. This puts me back in
skeptical mode. If the key support levels fail to hold, the markets
could head much lower. Therefore, I see no reason to get excited in
here until we see some follow through to the upside. Just in case, you
might want to start keeping an eye out for potential shorts.
Transition patterns such as Bow Ties will be the first to set up.

In looking to potential setups, there are a few
biotechs that “faked-out” on Wednesday but might still be
worthy of a look, especially if they can take out Wednesday’s high.

Protein Design Labs (PDLI),
mentioned recently, still looks like it has the potential to resume
its strong uptrend. However, as implied above, wait for an entry.

Imclone Systems (IMCL),
also mentioned recently, is a somewhat similar pattern.

Best of luck with
your trading on Thursday!

Dave
Landry

P.S. Reminder: Protective stops on
every trade!

“…Wonderful
and especially clear book… I’ve been enjoying it and integrating
it’s techniques in my trading…”

No risk,
30-day, money back guarantee.