Still Waiting For A Bounce
On Wednesday, the Nasdaq lapped higher. Unfortunately (for
longs), this turned out to be the high of the day. It then proceeded to sell
off. It did manage to strengthen by mid-day but this gave way to late day
selling.
The S&P put in a similar performance.
So what do we do? My commentary is essentially the same.
Once again, the path of least resistance still
remains down. However, we are so oversold that I still believe we could see a bounce in here
soon. This is especially true if we begin to get timing signals triggering.
Therefore, for now, don’t fight the tape. Wait for signs of a reversal before
attempting to play a bounce.
 Looking to potential setups, Raytheon
(
RTN |
Quote |
Chart |
News |
PowerRating),
in the strong defense sector, is in its first pullback since its recent melt up.
Techne Corp.
(
TECH |
Quote |
Chart |
News |
PowerRating), mentioned recently and in
the weak biotechs, still looks poised to continue its rollover out of an inverted cup
and handle.
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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