Toss A Coin
On Wednesday, the Nasdaq gapped nicely higher but
immediately began to sell off. The selling continued until late in the
afternoon. It then rallied going into the close.
The S&P formed a similar “U” shaped pattern
(intra-day).
So what do we do? I’m not sure what to make of today’s
action. If I were just getting the office, I would assume it was an up day.
However, because I was here, I watched it trade all over the place intra-day.
This was especially true in the individual issues. This makes me wonder if we
are settling into a choppier market pattern (e.g. late summer?). As far as
short-term direction, I think you could toss a coin. The longer-term trend
remains down but we still appear to be in bounce mode (but for how long?).
Therefore, look to play both sides but keep it light.
Looking to potential setups, I think I’m going to stick
with the biotech theme. The stocks don’t look incredible here but are beginning
to shape up. With that said, Genetech
(
DNA |
Quote |
Chart |
News |
PowerRating) looks like it has the potential
to rally out of a low-level cup and handle.
I’m Okay!
Based on current events, several of you have emailed me
expressing concern about me living in Louisiana. Thanks! The good news is that
the floods from the tropical storm are washing away the serial killers and West
Nile mosquitoes. Now I know how it feels to live in California!
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!