Some Things That Concern Me
On Friday, the Nasdaq chopped back-and-forth in a narrow trading range.
The S&P put in a similar performance. It remains
in a short-term sideways trading range.
In the sectors, Biotech is stalling near multiple tops. The
semis have recently broken down. Banks look like they have failed in a pullback.
Retail has generally been drifting sideways to lower in a high level trading
range. Telecom, Internet and Software remain generally strong. However, I am
seeing a few individual issues beginning to show signs of weakness here.
Virtually all commodity related stocks including metals & mining and the
energies look poised to resume their recent slide out of a First Thrust.
So what do we do? The lack of follow
through from Thursday’s intra-day turnaround is discouraging. What’s even more
concerning is the fact that many sectors have either failed to make any forward
progress lately or are beginning to show signs of weakness. Considering
this, I think now is the time to honor your stops on existing longs and
adopt a “show me” attitude before looking to establish any new ones.
On the short side, since the commodity related issues can trade independently of
the indices, this could be your best bet while the market finds its way.
As far as setups, Occidental Petroleum
(
OXY |
Quote |
Chart |
News |
PowerRating) appears to
have put in a big picture top and looks poised to continue lower out of a First
Thrust.
Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
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