Voices
Each evening we focus
on the most interesting aspects for the upcoming trading
day. The comments are based on observations of the nightly
updates of the Stocks/Sectors and Market Bias pages. They
are provided for educational purposes only and are not
intended to be direct trading advice. Also, keep in mind
that these remarks are made up to 12 hours in advance of the
market’s opening. Therefore, overnight events may alter the
outcome of these observations.
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On Monday, the Nasdaq open slightly higher (a) but was
unable to hold its gains. It then sold off and closed poorly (b) for a small
loss. Although a down day, this does add another higher low to the recent
uptrend.
The index seems to be stalling out in a prior congestion
area (c). This suggests that the 3500-3600–recent highs (d) and the 50-day
moving average–remains a likely
resistance level to the upside.
The S&P also
remains in a holding pattern. It’s bumping up against its 50 and 200-day moving
averages (a), which also corresponds with a recent congestion level (b). On
the bright side, it appears that the index has formed a low-level cup. If
it can “handle” in here (without failing), it could have the potential
to make a much bigger picture cup (with “c” as the left side).Â
Let’s not start kissing each other just yet though.
At the risk of being redundant, we’re probably in a holding
pattern until the election is behind us–or perception of who will win based on
exit polls.Â
In making my nightly laundry list of stocks (or should I
say my “Landry” list), I see that my potential shorts column is much
larger than my potential longs. Also, in the potential long column, I have
mostly defensive issues (except for CERN, see below) and on the short side, I
have mostly tech. This is me letting the database “talk” to me. And
tonight, it re-affirms my recent feelings–stay defensive and consider a short
or two in tech.
Looking
to potential setups, Trigon Healthcare
(
TGH |
Quote |
Chart |
News |
PowerRating), on the
Pullbacks
Off Highs List, has formed a Trend Pivot Pullback. Just wait for follow-through–in this case, to take out the Friday’s pivot high–as it did close
poorly on Monday.
Cerner Corp.
(
CERN |
Quote |
Chart |
News |
PowerRating), also on the Pullbacks
Off Highs List, looks poised to continue its strong uptrend.Â
On the short side, once again, the Broadband Holders
(
BDH |
Quote |
Chart |
News |
PowerRating) still look vulnerable.
Inktomi
(
INKT |
Quote |
Chart |
News |
PowerRating), on the Implosion
10 Technology List, appears to be resuming its downtrend out of a pullback
from lows.
Newport
(
NEWP |
Quote |
Chart |
News |
PowerRating), also on the Implosion
10 Technology List, looks like it has the potential to break down out of a
loosely formed inverted cup-and-handle.
Best
of luck with your trading on Tuesday!Â
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
P.P.S. Vote! Call your CPA and vote
your pocket book if you’re on the fence.
*Thanks for all the orders on the
book! We’re working hard to get it out ASAP.