The Big Blue Arrow
On Thursday, the Nasdaq lapped lower and after a
brief blip up, continued lower. It did bounce around noon but the sellers
returned late in the day. This action has it closing poorly.
The S&P also sold off to close poorly.
So what do we do? The fact that the market could not
continue higher after the mother-of-all rallies suggests that it remains
vulnerable. This is especially true in tech. Therefore, look for shorting
opportunities in technology. On the long side, focus on issues that have
performed well lately (e.g., health services) or have the ability to trade contra
to the overall market (e.g., gold).
Looking to potential setups, Anthem
(
ATH |
Quote |
Chart |
News |
PowerRating), mentioned
Wednesday night and in the
strong health services–healthcare plans, still looks like it has the potential to
resume its uptrend out of a pullback.
On the short side, the Nasdaq Ishares
(
IBB |
Quote |
Chart |
News |
PowerRating) looks
poised to resume its downtrend out of a pullback from lows.
Best of luck with
your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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