Still Choppy
On Friday, the Nasdaq lapped lower and begin to
choppy around. It then sold off hard on the Anthrax scare. Then, late in the
day, it rallied to close well.
The S&P had a similar day.
So what do we do? Earlier
in the day I was all impressed with my big blue arrow. Then, the afternoon rally
had me thinking that this recent strength cannot be stopped. No matter what you
think, you have to admit it’s choppy out there. This makes for a difficult
trading environment for the swing trader. So, don’t fight the short term up
momentum but continue to keep an eye out for shorts. And, above all, keep it on
the light side.
Looking to potential setups, Once again, the defense issues
still look like they have potential. With that said, Raytheon
(
RTN |
Quote |
Chart |
News |
PowerRating),
mentioned last night, still looks like it has the potential to rally out of a
pullback from highs.Â
L-3 Communications
(
LLL |
Quote |
Chart |
News |
PowerRating) is another example of a
defense stock that has pulled back but still looks poised to resume its uptrend.
For more stocks in this sector, check out tonight’s Pullbacks
Off Highs List.
Best of luck with
your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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