What Could Throw A Wrench Into Your Market Plans
Looking to the indices, on Thursday, the Nasdaq opened
firmer but quickly found its high and began to sell off. However, it found
its low in early trading and generally worked its way higher for the remainder
of the day. This action has it closing well and at new highs for the year.
The S&P put in a somewhat similar performance. It
is just shy of new highs.
So what do we do? You can’t argue with the
trend. So far, it remains up. However, I still remain somewhat concerned about
the fact that the market remains overbought. Of course, as you know, just
because a market is overbought, doesn’t mean it can’t go higher. With that said,
for me to get excited (about the market), I’d really like to see a decisive breakout to new highs followed by an orderly
pullback. For now, on the long side, focus mostly on issues such as the metals that can trade contra to the
indices. On the short
side, since the tape remains strong, make sure you are waiting for sector and
stock confirmation (entries).
Looking to potential setups, Eresearch Tech
(
ERES |
Quote |
Chart |
News |
PowerRating),
mentioned Wednesday night and in
the strong health services–med labs sub-sector, still looks like it has the
potential to resume its strong uptrend out of a Trend Pivot Pullback (email me
if you need the rules, I’m a little backed up but should get to all soon).
FYI, Friday’s Employment Report is the most highly
anticipated in quite a while. It could “throw a wrench” into any
well laid plans.
Happy birthday Marcy!
Best of luck with your trading on Friday!
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
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