The End Of The World, Or A Buying Opportunity?
Heads up! After the close, Intel (INTC)
announced earnings in line (actually better than revised estimates)
but a negative spending forecast for 2002 ($2 billion less than
originally stated). This action is weighing heavy on the semis in
early after hours trading, and will likely push the overall market
lower on the open.
On Tuesday, the Nasdaq started strong but found
its high late in the morning. It then sold off to test Monday’s lows
but bounced going into the close. This action has it closing above the
open and fairly well.
The S&P also rallied, sold off and recovered.
This action has it back above its 50-day moving average.
So what do we do?
Although the indices were all over the place on Tuesday, they did
manage to close higher after reversing from Monday’s lows. This,
coming off of an oversold condition with market timing buy signals
beginning to trigger,
would normally have me bullish. And I am, somewhat. The problem is
Intel. The news throws a wrench into the gears. As mentioned above,
the market will likely trade lower on the open. However, if it can
reverse intra-day, it could present a buying opportunity. Therefore,
look to nibble on the long side, but wait to see how the market
reacts to the Intel news and above all, wait for entries.
Looking to potential
setups, Symantec (SYMC),
in the strong software sector, appears to be finding support and
reversing after pulling back into the top of its recent base.
No Tickee, No
Tradee
Applied Materials (AMAT),
mentioned last night as a Running Cup and Handle, is getting whacked
in early after hours trading (a). Fortunately, it didn’t trigger on
Tuesday. Wait for entries, especially in choppy markets and in front
of news.
Other
Join me Wednesday afternoon at 4:30 EST for a
interactive teaching session in Traders Wire (free to ALL members).
I’ll be discussing "Getting Started in Momentum-Based Swing
Trading" but will also be happy to discuss other topics.
Best of luck with
your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
"…..It
is clearly the best book on swing trading currently in the public
domain…."
Stanley O.
No risk,
30-day, money back guarantee.