What I’m Going To Do This Weekend
If you try and interpret anything from the action in the market and stocks over
the past couple of days, you are not very likely to find anything you can act
on. Rather than post feedback on
the market, I’d rather focus on what intermediate-term traders/investors should
spend some time doing this upcoming weekend.
The Nasdaq has violated its follow-through
day from last week, but on extremely light trade. This means nothing, so the
next step is to take a look at the leading groups. Medical and biotech sectors
have been either hanging out at the top of the tables or are quickly moving up
Secondly, I would go through the
stocks within these and other leading sectors and see if any of them are setting
up on a technical basis. One reader recently pointed out that weekly charts can
help spot flaws and resistance points that a daily chart cannot. Good point, and
I usually do look at a five-year weekly chart once the daily chart looks good.
Recent examples of good daily charts
but poor weekly charts would be Serena Software,
(
SRNA |
Quote |
Chart |
News |
PowerRating) and EBay
(
EBAY |
Quote |
Chart |
News |
PowerRating).
As we go through and look for stocks
that pass technical criteria, then I will move on to the fundamentals. After
looking through the stocks, we will truly have a better idea of how healthy this
market and individual stocks truly are, come next week.
Have a great weekend!
Â