The Song Remains The Same
On Thursday, the Nasdaq opened higher and initially traded
higher. It then sold off, drifted and resumed its sell off late in the day. This
action has it closing poorly and suggests that its downtrend out of a pullback
from lows remains intact.
The S&P was also puny. It appears to be stalling at the
top of its recent range. Once again, this action suggests the bottom of its range could be challenged.
So what do we do? Once again, my commentary remains
essentially unchanged: Thursday’s confirming action (i.e. weakness) combined with negative action in much of the techs (e.g. software, semis,
Internet etc..) suggests that we should continue to look for shorting opportunities in tech.
Looking to potential setups, Polycom
(
PLCM |
Quote |
Chart |
News |
PowerRating), in the
weak telecoms, looks poised to continue its downtrend out of a pullback/big
picture inverted cup and handle (not shown).
Coach, What Now?
Recently, I have been doing a “walk through” on Coach Inc.
(
COH |
Quote |
Chart |
News |
PowerRating), a stock mentioned recently (see archives on the right side of this page for more details).Â
When I last left off, I had discussed that it should not come back into the area
of its breakout (i.e. the breakout should hold). Therefore, this area, circa
47(a) would be a good place for a trailing stop.
Best of luck with
your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
*Accounts.
“….Give a person a fish or teach them to fish I believe is an appropriate metaphor – I know traders who will lose 10k in a day but balk at paying $100 bucks for your fishing pole- best book in my trading library. Column continues to be great, no bs.Â
Thanks,….”
Pete….
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