These Areas Are Looking Good
On Tuesday, the Nasdaq opened firmer
but then traded
back-and-forth for most of the day, ending just about where it started. I
suppose a gain is a gain, though.
Once again, recent highs (circa 1875)/the 50-day moving average are
minor resistance here.
The S&P dipped in late-day trading but was able to
bounce back and close well.
This action keeps it above its 200-day moving average and
puts it at its highest level since early July.
In the sectors, overall, things remain generally positive.
Interest sensitive issues such as banks, financials, and homebuilders are
breaking out to new highs. Broker/dealers did especially well. It broke out to
new multi-week highs out of a Bow Tie/low-level cup and handle. Other areas
hitting new highs included (but not limited to) selected metals/mining,
insurance (in spite of recent hurricane activity), chemicals, manufacturing,
health services, and transports. On the downside, tech in general continues to
lag. The semis being the standout there. They hit one-year plus lows on Tuesday.
On the bright side, they appear to be slowing in their slide.
So what do we do? In general, as implied
above, things continue
to improve. It sure we be nice if tech would join in for the ride, but I guess
beggars can’t be choosers. Since my methodology requires a pullback, I’m forced
to wait to see what happens on the next correction. If it is orderly, I will
then look to get long if the trend resumes. Until then, I wait here
optimistically.
No setups tonight. If the market can continue to follow
through, we could see numerous stocks setting up soon.
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. Learn my newest and most advanced version of my Bow
Ties Strategy. Click
here for details.