The Trend Remains My Friend
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
markets opening. Therefore, overnight events may alter the
outcome of these observations.
On
Thursday, the Nasdaq opened weak but began to rally. However, it found its high
by mid-morning and then began to sell off. Although it did bounce going into the
close, the fact that it lost roughly 2% scores the day as a negative.
The S&P also bounced going
into the close but still looks vulnerable longer-term.
So what do we do? Basis the
Nasdaq, the possibility exists that we could get a dead cat bounce in here as
the old lows are approached. The S&P still looks like it has a ways to go.
Therefore, continue to focus on the short side but you might want to lighten up
and tighten up on existing positions.
Looking to potential setups, Morgan Stanley Dean Witter
(
MWD |
Quote |
Chart |
News |
PowerRating), mentioned recently, still looks poised to make another leg
lower.
T Rowe Price
(
TROW |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Lows List, appears to be resuming its strong downtrend.
The Biotech Holders
(
BBH |
Quote |
Chart |
News |
PowerRating), mentioned recently, still
look vulnerable as do the Pharmaceutical Holders
(
PPH |
Quote |
Chart |
News |
PowerRating).
Other
I recently read Tony Saliba’s Options Workbook. Tony
covers options in a very thorough yet clear and understandable fashion. This has
me wanting to go the seminar.
And, I will if I can get out of a wedding.
Best
of luck with your trading on Friday!
P.S. Reminder:
Protective stops on every trade!
“…...Hey,
for a moron, you write a good book……..”
Cliff C
Special: 20% off this
weekend only.
No risk, 30-day, money
back guarantee.