Standing Up To Get Knocked Down?
Dave Landry is out of the office Friday and will
return on Monday. In his absence this column is being written by TradersWire’s
Duke Heberlein.
On Friday, the Nasdaq Composite
(
COMPX |
Quote |
Chart |
News |
PowerRating) rose higher on the open, then
reversed. It then managed to rally off its intraday low from 11 AM eastern to
the intraday high around 1:30 eastern before sliding into the close. This has
the index hitting the convergence of the 20-day moving average and its downward
trendline.
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The S&P 500 is looking similar.
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So where do we go from here? As a card-carrying member of the
trend following moron society (TFMS) I am not really optimistic about the
charts, as they appear to be simply pullbacks within downtrends. The market will
often play out in threes, and today was the third reaction day off of low.
However, if the two indices can manage to break out above their respective
trendlines and MA’s, there may be a chance for an assault on the 50-day moving
average. Until that happens, though, I am going to focus on the short side.
Looking ahead to setups for Monday, for you breakout players, Whole
Foods Market
(
WFMI |
Quote |
Chart |
News |
PowerRating), from the New
60-day Highs on Double Volume List, made an expansion breakout in Friday’s
session. Optimal Robotics
(
OPMR |
Quote |
Chart |
News |
PowerRating), from the same list, gapped out of
a pullback and closed on its high on an expansion of range.
Cerner
(
CERN |
Quote |
Chart |
News |
PowerRating), off the Momentum
10 Technology List, has rolled over the moving averages to form a Bow Tie,
and may pull back to set up in the next few days.
Smith International
(
SII |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
From Lows list and mentioned by Dave recently, still looks interesting out
of a Trend Pivot Pullback.
Amerus Group
(
AMH |
Quote |
Chart |
News |
PowerRating), from the 60-day
Lows on Double Volume list, has formed a Lizard to the downside following an
expansion breakdown.
Finally, Bisys
(
BSYS |
Quote |
Chart |
News |
PowerRating), from the Implosion
10 Technology list, is forming a flag pattern in the middle of its probe to
the downside.
Best of luck with your trading on Monday!
Duke
P.S. Protective stops on every trade!