Still Holding
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
markets opening. Therefore, overnight events may alter the
outcome of these observations.
Trader’s
Galleria has recently added more products. Check it out and pre-order my upcoming book on swing
trading at a 20% discount while you’re there (No shame is still my middle name).
On Friday, the Nasdaq gapped slightly higher (a) probed
lower, poked higher and then chopped sideways. This action has it closing near
its open for pretty much a scratch. The good news is that it added one more
higher low to its recent uptrend (b).
The recent highs around 3500-3600 (c) remain a likely
resistance level to the upside.
Once again, the S&P
is bumping up against overhead resistance/its 50-day moving average (a).
Were remain overbought and so far, looks like we’re still
in a holding pattern until after Tuesday.
So what do we do? Setups began to fizzle as they normally
do after a few great days. This is why trailing stops and profit taking are
crucial. It’s still probably not a bad idea to consider a short or two and stay
with the defensive issues until the overbought condition is worked off.
Looking
to potential setups, Kimberly
Clark
(
KMB |
Quote |
Chart |
News |
PowerRating), in the recently strong cyclical
(
$CYC.X |
Quote |
Chart |
News |
PowerRating)/paper
(
$FPP.X |
Quote |
Chart |
News |
PowerRating)
sector and on the Pullbacks
Off Highs List, looks poised to
resume its strong uptrend.
Â
Washington Mutual
(
WM |
Quote |
Chart |
News |
PowerRating), also on the Pullbacks
Off Highs List, also looks like
it has the potential to resume its uptrend out of a pullback.
On the short side, the Broadband Holders
(
BDH |
Quote |
Chart |
News |
PowerRating),Â
mentioned recently, still look vulnerable.
On the Proprietary
Implosion List, Cooper Cameron
(
CAM |
Quote |
Chart |
News |
PowerRating), mentioned Thursday night, still
looks poised to resume its strong downtrend out of a pullback from lows.
IBM
(
IBM |
Quote |
Chart |
News |
PowerRating),
mentioned recently, still looks vulnerable.
Best
of luck with your trading on Monday!Â
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!