What’s Making Me Bullish
No Tickee, No Tradee
Arthrocare
(
ARTC |
Quote |
Chart |
News |
PowerRating), mentioned Wednesday night, sold off
hard on Thursday (a). Fortunately, it did not trigger an entry (i.e.did not
trade above the prior day’s high). As you can see, waiting for entries can often
keep you out of a potentially losing trade.
Looking to the indices, on Thursday, the Nasdaq rallied in
early trading but began to sell off by mid-day. However, it found its low late
in afternoon trading and then rallied going into the close. This
“tail” lower sets up a high-level cup and handle.
The S&P also traded lower but reversed to close well
and in the plus column. This action keeps it above its recent breakout levels.
So what do we do? The intraday turnaround,
especially in the Nasdaq, is constructive. It suggests that the correction may
be over. Even areas hit especially hard earlier in day, such as retail and the
semis, came back strongly going into the close. This action lured in
some eager bears (some of which felt compelled to contact me) and could clear
the way for higher prices. Further, my
database is generating a plethora of setups on the long side (remember, my
methodology requires a pullback). Normally, when this occurs, it’s a good
time to trade. Ideally though, I’d prefer to see the market more oversold and some of
my buy signals kicking in, but as Mick says, “You can’t always get what you
want.” Considering the above, look to get long in stronger sectors that
have recently pulled back. These include (but not limited to): gold, banks,
telecom-wireless, silver, metals & mining, generic drugs, and health
services. However, as always, wait for entries.
Looking to potential setups, Apex Silver Mines
(
SIL |
Quote |
Chart |
News |
PowerRating)
looks poised to continue its persistent uptrend out of a Trend Knockout (TKO).
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
here now for details.