This Indicator Points The Way
On Tuesday, the Nasdaq opened firmer, dipped, but found its
low in early trading. It then worked its way higher for the remainder of the day
in a choppy fashion.
The S&P put in a somewhat similar performance. This
action puts the index right at its 200-day moving average.
So what do we do?
The big blue arrows are obviously
still pointing down. However, I think we are in bounce from oversold mode.
Therefore, use this as an opportunity to continue to put together your list of
potential shorts. For now, while the market is rallying, you might want to focus
mostly on those issues that can trade independently of the indices. With that said, energy and
metals & mining have recently pulled back and look poised to continue their
recent thrust lower.
As far as setups, Precision Castparts
(
PCP |
Quote |
Chart |
News |
PowerRating), mentioned
recently, still looks like it has the potential to resume its recent
rollover out of a First Thrust (as usual, email me if you need rules). Wait
for an entry though since it was up sharply on Tuesday.
FYI
On Wednesday at Noon eastern, I will be doing my weekly
audio/visual show. After such a crazy week in the market, I have some GREAT
examples (if I say so myself). I will also cover current conditions in the
market, sectors, and some possible stock ideas. Email me if you would like to
participate live or would like archives to this and prior shows.
Best of luck with your trading on Tuesday!
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.