Two Areas That Look Like They Have The Potential To Continue To Outperform The Market
On Tuesday, the Nasdaq opened lower and initially continued
lower but soon found its low and began to rally. Then, after drifting sideways
throughout mid-day, it rallied again. This action has it closing well.
The S&P put in a similar performance but wasn’t as
strong in late-day trading. This action keeps it above its 200-day moving
average after a brief intra-day dip below it.
So what do we do? Normally, a bullish intra-day
reversal from an oversold condition would have me jazzed. However, for some
reason, I’m having a hard time getting excited about this market. I just don’t
trust it. When I feel this way, I carefully study my scans to see if there is
anything that I’m not seeing “on the surface.” And tonight, the majority of my
setups are in energy and metals & mining. So, I said to my self, “self, rather
than try to pick a direction of the overall market, why not continue to stick
with these commodity related areas that can trade independently of the indices?”
As far as setups, although copper ended lower on Tuesday,
so far, it only appears to be pulling back in its strong uptrend. Therefore, Southern Peru
Copper
(
PCU |
Quote |
Chart |
News |
PowerRating), mentioned Monday night, still looks poised to its strong
uptrend out of a pattern I call a Double Top Knockout/Pullback..
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
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