Sliding Into Labor Day
On Wednesday, the Nasdaq lapped higher but quickly found
its high and resumed its sell off. It found its low early on and then chopped
sideways for the rest of the day.
This action has it closing poorly and gets it even closer
to last
week’s lows.

The S&P sold off to take
out last week’s lows.

So what do we do? Momentum
still favors the short side. However, use caution as we are beginning to get
oversold and could get a dead cat bounce in here. Also, keep in mind that
trading will likely wind down as the long holiday weekend draws closer. This
could make for thin and choppy trading. You might want to consider
tightening stops and getting out of positions. And, you might consider getting a
head start on your vacation.
Looking to potential setups, Intermune
(
ITMN |
Quote |
Chart |
News |
PowerRating),
mentioned recently, still looks like it has the potential to resume its strong
uptrend out of a pullback. Just wait for follow through to the upside as it did
close poorly on Wednesday.

On the short side, Best Buy
(
BBY |
Quote |
Chart |
News |
PowerRating),
mentioned Tuesday night as an inverted cup and handle, still looks vulnerable.
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
P.P.S. Several of you have asked for an updated picture of
Isabelle, my future trend following moron. Here it is. Isn’t she just adorable!

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