Something
Each evening we focus
on the most interesting aspects for the upcoming trading
day. The comments are based on observations of the nightly
updates of the Stocks/Sectors and Market Bias pages. They
are provided for educational purposes only and are not
intended to be direct trading advice. Also, keep in mind
that these remarks are made up to 12 hours in advance of the
market’s opening. Therefore, overnight events may alter the
outcome of these observations.
I just got my copy of The Best:
TradingMarkets.com Conversations With Top Traders. It’s a great book.
In fact, I had to force myself to put it down so I could write this piece.Â
Get yourself a copy at Trader’s
Galleria. And, while you’re busy getting rid of all that troublesome cash,
make sure you pre-order my upcoming book on swing
trading at a 20% discount.
On Tuesday, the Nasdaq gapped lower (a) and began to slide.
However, it was able to recover to have a decent close(b).
Volume was light and we ended flat on the day. In other
words, a fairly insignificant day.
The recent highs (around 3500) and the 50-day moving
average, which will soon be there (as higher prices are dropped off and lower
prices are added in), remain a likely resistance level to the upside.
So what do we do? We still remain overbought from the
recent run-up. This can be walked off either by continuing to go sideways or by
the market selling off. Of course, the market will do
“something” depending on tonight’s election results. And, right now,
no one knows what that “something” will be. Therefore, stay
defensive and consider a short or two. I promise as soon as there is
something to say, other than the usual, I’ll say it.
Looking
to potential setups, Trigon Healthcare
(
TGH |
Quote |
Chart |
News |
PowerRating), mentioned Monday
night, sold off earlier on Tuesday but reversed to close well. This suggests
that its uptrend remains intact, especially if it can take out Friday’s pivot
high (a).
Cerner Corp.
(
CERN |
Quote |
Chart |
News |
PowerRating), mentioned Monday
night, appears to be resuming its uptrend.
Eclipsys Corp.
(
ECLP |
Quote |
Chart |
News |
PowerRating), on the
Pullbacks
Off Highs List, looks poised to resume its strong uptrend.
On the short side, the Broadband Holders
(
BDH |
Quote |
Chart |
News |
PowerRating)
and Newport
(
NEWP |
Quote |
Chart |
News |
PowerRating), both mentioned Monday night, both still look
vulnerable.
Cooper Cameron
(
CAM |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Lows List, looks poised to resume its downtrend.
Best
of luck with your trading on Wednesday!Â
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!