This Biotech Stock Is Ready To Move
On Monday, the Nasdaq lapped lower and after a brief early
morning bounce, continued to sell off. Then, after drifting and chopping
sideways, it resumed its sell off going into the close. This action puts it well
below its recent breakout levels (a).
The S&P put in a similar performance.Â
Looking to the shorter-term, the “Bow Tie” moving
averages (10-day simple, 20-day exponential and 30-day exponential) all appear
to be rolling over (a).
The S&P Bow Tie averages also appear to be rolling over
(a).
This action is more pronounced in tech related sectors such
as the semis.
And, sub-sectors of software.
So what do we do? As you know, I came into Monday
positive on the market. To review, the indices were set up as pullbacks, the
market was oversold and buy signals were triggering/close to triggering.
However, in light of Monday’s action, it now looks like we are back in rollover
mode. Therefore, the short side once again looks interesting. Keep it light
though. The market is still due for a bounce based on most of the same reasons
mentioned on Friday.Â
Looking to potential setups, biotech was hit fairly hard on
Monday. Celgene
(
CELG |
Quote |
Chart |
News |
PowerRating) looks like it has the potential to continue its
rollover out of a First Thrust.
No Tickee, No Tradee
Dst Systems
(
DST |
Quote |
Chart |
News |
PowerRating), like Ralphie a few weeks ago, got
whacked on Monday (a). Fortunately, it never triggered (b). Wait for entries,
especially when the market and sector are also getting hit.Â
Best of luck with
your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…I have read your book over a dozen times and I am still learning new things. Thanks for making me realize that I am a “method” man and I have since changed my ways increasing my success greatly….Thank you again for writing a terrific
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