Where You Should Look For Opportunities Next Week

Looking to the indices, on Friday, the Nasdaq opened lower
on a punk jobs report but quickly found its low and began to rally. It found its
high in early afternoon trading and then sold off for the remainder of the day. This action
has it closing poorly after tagging multi-year highs.

The S&P sold off fairly hard after an attempting bounce
from its opening lows. This action has it closing poorly.

So what do we do? Finally, this market decides to
correct a bit as traders didn’t want to take stocks home in front of a weekend
(I was beginning to worry about Thursday’s “guarantee”, see archives).
Should the market continue to pull back in an orderly fashion, it will likely
set up a plethora of setups soon. High flying areas such as telecom and
hardware-networking could offer the best opportunities. For now though,
you probably want to continue to focus on areas such as energy that can trade
contra to the overall market. On the short side, the homebuilders peeped their
head up Friday on the rally in bonds. However, they look poised to resume their
rollover out of a big picture topping formation.

Looking to potential setups, Occidental Petroleum
(
OXY |
Quote |
Chart |
News |
PowerRating)
,
mentioned recently and in the strong independent oils, still looks like it
has the potential to resume its persistent uptrend out of a TKO. However, wait
for an entry since it “faked out” on Friday.

Best of luck with your trading on Monday!

Dave Landry

dave@davelandry.com

P.S. Reminder: Protective stops on every trade!

P.P.S.
In February I’m having a small, exclusive three-day swing trading seminar and I would like you to attend.
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here
.