This Stock Still Looks Like It Has Potential But Make Sure It Does This First
On Friday, the Nasdaq rallied in early trading but soon found its
high and began to sell off. It bounced late in the day but sold off again going
into the close. This action has it closing poorly.
The S&P put in a similar performance.
So what do we do? Lately, I’ve been concerned about the
“wedging” action in the S&P. Ideally, I wanted to see the index
accelerate higher out of this potentially bearish pattern. I got my wish on
Thursday but, as you know, it gave back all of that and then some on Friday.
This is concerning. So far though, the action elsewhere is pretty good. Most
tech areas, like the Nasdaq itself, remain in strong uptrends. Outside of tech,
longer-term, metals & mining, retail, and energy remain in a strong
uptrends. On the downside, HMOs look poised to resume their recent rollover.
Considering the above, continue to look to get long strong tech areas such as
biotech but wait for entries based on Friday’s action. On the short side,
continue to look for opportunities in the HMOs.
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As far as setups, the Neurocrine Biosciences
(
NBIX |
Quote |
Chart |
News |
PowerRating), mentioned
recently, still looks poised to resume
its sharp uptrend out of a pullback. However, give it some “wiggle
room” on the entry (i.e. use a higher than normal entry, see my recent A/V
on entries) since it has been trading in a narrow range as of late
(a).
Housekeeping
I have the links to last week’s audio/visual presentation along with the
prior year’s archives (covering topics such as entries, money management,
psychology, patterns etc..). Email me if you would like a free copy. FYI, I’m a
little backed up at the moment but hope to catch up soon. Thanks for your
patience!
Best of luck with your trading on Monday!
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
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