Watch These Levels
Looking to the indices, on Wednesday, the Nasdaq chopped
back and forth in narrow range trading.
The S&P put in a similar performance.
So what do we do? Since the March low, every
time the indices have dipped down to their well-watched 50-day moving averages
(the red line in the above index charts), they have recovered to make new highs.
We are now faced with a similar situation. Therefore, I think it’s important that
they break through their old highs. Considering the above, pay careful attention to
how the indices behave as these levels are approached.
As far as setups, since my methodology requires a pullback, I’m still not seeing any
(meaningful) longs setting up.
On the short side, you might want to continue to
look for opportunities to help balance out existing longs. However, focus on weaker areas such as regional air, biotech, consumer non-durables, and
asset management. And, once again, continue to wait for entries.
Looking to potential setups, Jet Blue
(
JBLU |
Quote |
Chart |
News |
PowerRating) looks
like it has the potential to resume its recent meltdown out of a First
Thrust-like setup.
Other
My thoughts and prayers go out to my friends and business associates in
southern California. Hang in there, guys!
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
P.P.S. Learn my best swing
trading strategy in my new interactive CD-ROM. Click
here now for details.