The Last To Call It
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
market’s opening. Therefore, overnight events may alter the
outcome of these observations.
On
Monday, the Nasdaq opened slightly lower (a) and then sold off. At the low it was down over triple
digits (b). But in the last hour it mounted an
impressive rally to make back nearly all of the day’s losses.
The
fact that we stopped and reversed before tagging the old lows, leaving a
“tail”, is, to quote Martha, “a good thing”.
So where does this leave us? The trend still remains down.
And, I can assure you, I’ll be the last one to call a bottom. With that said, it
looks like another bounce from lows may be under way. Follow-through will
be key.
I’d feel much better if I had a few timing signals kicking
in. Therefore, keep it light until we get a clearer picture.
Looking to potential setups,
Astoria Financial
(
ASFC |
Quote |
Chart |
News |
PowerRating), mentioned recently and on the Pullbacks
Off Highs List, appears to be finding support near its recent lows (a). This
action suggests that its uptrend remains intact.
Novellus Systems
(
NVLS |
Quote |
Chart |
News |
PowerRating),
on the Pullbacks
Off Highs List, is a low-level saucer-and-handle-ish formation. Just don’t
overstay your welcome here as there is a lot of overhead resistance.
National Service Industry
(
NSI |
Quote |
Chart |
News |
PowerRating), also on
the Pullbacks
Off Highs List, is in its first pullback since breaking out of a base.
Best
of luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!
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