Two Areas That Could Rally Independently Of The Market
Looking to the indices, on Thursday, the Nasdaq rallied in
early trading, took a break around mid-day, and finally resumed its rally going
into the close. This action has it closing well and above its 50-day moving
average.
The S&P put in a similar performance. This
action puts it at new highs for the year.
So what do we do? Although many sectors came
roaring back on Thursday, many (included quite a few that closed higher) still
look vulnerable. Therefore, for now, I still think it might be prudent to stick
with issues that can contra to the indices. My two favorite groups here include
the energy stocks and metals and mining. On the short side, focus on those areas
hit hard lately such as retail, the semis, and (for the aggressive) the
homebuilders. However, make sure you wait for entries in light of the strength
we saw on Thursday.
Looking to potential setups, Noble Energy
(
NBL |
Quote |
Chart |
News |
PowerRating),
mentioned Wednesday night and in the
strong energy-independent oil & gas sub-sector, still looks like it has the
potential to resume its sharp thrust higher out of a Trend Knockout.
Best of luck with your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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