What Bela Karolyi Might Say About This Market
Looking to the indices, on Tuesday, the Nasdaq lapped
higher but failed to follow through in early trading. However, by mid-day it
resumed its rally. This action has it closing well.
It still remains below its minor resistance level, circa
2100.
The S&P also rallied to close well. This action puts it
just shy of its old highs and makes me exclaim, in my best Bela Karolyi voice
“YOU CAN DO IT!…YOU CAN DO IT!!!”
So what do we do? I’m still looking for two
things to get me (very) bullish on this market 1) A
convincing breakout in the S&P (followed by an orderly pullback of course!)
and 2) For technology to join in for the ride. On Tuesday, the S&P
approached breakout levels and tech also popped its head up. So far, so
good!
It still remains difficult to find meaningful setups.
Therefore, at the risk of boring you to death, continue to manage what you have
vs. looking to establish new positions.
Looking to potential setups, Nektar Therapeutics
(
NKTR |
Quote |
Chart |
News |
PowerRating)
is one of the few stocks on my list tonight (Tuesday). It looks like it has the
potential to resume its uptrend out of a high level (“running”) cup
and handle.
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S.
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