Wanted: Confirmation
Due to a
scheduling conflict, Dave Landry will be unable to write his
Stock Trading Outlook tonight. Tonight’s column is written
by TradersWire’s Duke Heberlein. Dave will be back on
Monday, June 26.
At the time this
is being published, the S&P Globex futures are trading
down 1.60 points.
We saw some
constructive action in the Nasdaq Wednesday. After gapping
down on the open, the index found its low three times in the
first half of trading, then turned upward for the
remainder of the day. This gives us a nice five-day rally
(a) and places the index firmly above both its 20-day and
50-day moving averages.
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While certainly
this is no guarantee that the bull is back, this does give
us a little breathing room. Just remember to honor your
stops and don’t go charging in with horns fully bared.
Before taking on positions, wait for follow-through.
Daytraders, look for confirmation in the second push
intraday.
Looking toward
possible setups, Aurora Biosciences
(
ABSC |
Quote |
Chart |
News |
PowerRating), on the
List, has formed a narrowing three-bar consolidation and
appears to have the potential to resume its uptrend (a).
Newport Corp.
(
NEWP |
Quote |
Chart |
News |
PowerRating), on the
10 Technology List, is a similar pattern.
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Akamai
Technologies
(
AKAM |
Quote |
Chart |
News |
PowerRating), on the
60-Day Highs On Double Volume List, broke out on an
expansion of range and volume. Look for momentum to continue
if it takes out Wednesday’s high.
Biotechs were strong again, and several of them, including
Gene Logic
(
GLGC |
Quote |
Chart |
News |
PowerRating), also staged breakouts on expansion
of their daily trading range.
Looking
to the short side, Fastenal
(
FAST |
Quote |
Chart |
News |
PowerRating), on the
From Lows List, appears to be following through in its
breakdown from a mini-triangle, and it could challenge its
June 12 low (near 45).
Best
of luck with your trading Thursday!
Duke
Heberlein
P.S.
Reminder: Protective stops on every trade!