What My Scans Suggest
Looking to the indices, on Thursday, the Nasdaq opened flat
and after a brief dip, began to rally. It found its high by mid-day and then chopped
mostly sideways for the remainder of the day. It did manage to close well
though.
It remains below overhead resistance (circa 1700 to
1750).Â
The S&P put in a similar performance.
This action puts it back above its 50-day moving average.
It remains in a trading range.
So what do we do? I hate to read too much
into late summer choppy trading, especially since the indices are in trading
ranges. With that said, about the only clues I can find is that there are still
more stocks that look like potential shorts than longs. At least this is what my
scans are showing me. True, there is some strength in areas such as gold and the
cyclicals, but these areas are not set up (my methodology, in general, requires
a pullback). Therefore, continue to watch for opportunities on the short side. However, at
the risk of boring you to death, continue to wait for a more decisive break lower
in the indices before getting too aggressive.
Looking to potential setups, on the short side,
Mid-Atlantic Heath Services
(
MME |
Quote |
Chart |
News |
PowerRating), mentioned recently and in the weak HMOs,
still looks poised to resume
its meltdown out of a First Thrust pattern (as usual, email me if you need the rules).
Best of luck with your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…..Your book on your swing trading method is succinct, straightforward, clear and above all useable. Thank you for the tools it provides. Please write more. You’re not just another writer, you’re a teacher who makes a difference…”
Michael S.
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