The Last Of The Bad News?
Trail ’em If You Got ’em
The Biotech HOLDRs
(
BBH |
Quote |
Chart |
News |
PowerRating) have moved higher since
recently mentioned. When this occurs, make sure you trail a stop higher (i.e.
raise your protective stop).
Once again, if you’re new to momentum-based swing trading and would like more information on the basics such as trend, entries, and money management, email me and I’ll be happy to send you the primer section from my second book.
On Thursday, the Nasdaq rallied in early trading, took an
extended lunch break, and then rallied nicely going into the close.
Ditto for the Ps.
So what do we do? My gut is that the Intel’s mid-quarter update will be
viewed as the “last of the bad news.” Further, since the last two
Employment Reports were punk, this one could be decent. Of course, all this is
just my opinion (I’m no longer allowed to give the opinion of others). Now,
forgetting about the news “what ifs”, Thursday’s market performance
was impressive. This action breaks the S&P out to multi-month highs, it puts
it over minor resistance, and has it above its 200-day moving average. Further
most sectors appear to be in the process of making a transition
higher. I guess the $64,000 question is, is this the “all
clear?” I’m not sure, but it certainly is a good start. Although things are
improving, exercise caution on Friday–don’t get caught up in any “fun and games”
that will likely occur on the open (the Employment Report is released before
the open).
There were very few meaningful setups. Therefore, I am not
showing any tonight (Thursday). Remain patient, if the market can continue to
hang in there, we will likely see a plethora of setups on the first pullback.
Best of luck with your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
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