Two Stocks With Potential
On Friday, the Nasdaq lapped
open and after a brief dip,
resumed its morning uptrend. Then after some mid-day drifting and
consolidating, it resumed its rally going into the close. This action has it
closing well and suggests that it is resuming its uptrend out of Thursday’s
“knockout” move (i.e., Trend Knockout*).
The S&P also put in a decent rally and closed well.
So what do we do? The fact that the indices have recovered
from the recent correction so quickly suggests that the uptrend remains intact.
Further, as I study the sectors, the vast majority remain in nice uptrends. Therefore, continue to focus on the long side.
Looking to potential setups, JP Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating), in the
strong money center banks (a), looks like it has the potential to resume its
persistent uptrend (b) out of a pullback.
Checkfree
(
CKFR |
Quote |
Chart |
News |
PowerRating), in the strong Internet software
& services sector(a), looks like it has the potential to resume its
accelerating uptrend out of a pullback.
Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
*I assume by know everyone knows the rules to
this pattern. If you are new to this column, email me and I’ll send you the
rules.
“….. Your idea about the MAs narrowing, crossing and setting up in proper order sure is a good one. It makes flipping through charts a piece of cake; another great idea from your marvelous book….”
Grant C.
