S&P At Support
On Tuesday, the Nasdaq sold off early and then
chopped its way higher to close off of its lows.
This action has it above its recent lows.
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The S&P sold off hard and seemed to find
support near the bottom of its recent range.
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So what do we do? The
market seems a little sold out here. The fact that the S&P did not
take out its support level is a positive. Therefore, I think you can
tighten stops on shorts and look to nibble on the long
side–provided of course, you get entries on your setups.
Looking to potential
setups, Blockbuster Entertainment (BBI),
mentioned recently, remains a low-volatility situation. This action
suggests that it is poised to make a large move (in either direction)
as volatility reverts to its mean. As you know, in these situations, I
like to put together a game plan which involves other technicals. With
that said, it still looks like a stock in an uptrend that is just
pulling back.
QLT Inc. (QLTI)
is in its first pullback since gapping higher. The stock doesn’t look
as great on the weekly, but based on the daily, looks like it has the
potential to challenge its recent highs (circa 26).
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On the short side, HCA (HCA),
mentioned Monday night and in the weak hospitals group, still looks
poised to resume its downtrend out of a pullback from lows.
Best of luck with
your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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