Why I Remain Bullish But Think You Should Take Some Profits
On Tuesday, the Nasdaq opened lower
but found its low by
mid-morning and began to rally. However, it found its high early in the
afternoon and generally worked its way lower and sideways for the remainder of
the day. This action has it closing flat.
The S&P put in a somewhat similar performance.
So what do we do? Momentum still favors the upside but the
market remains somewhat overbought. This is especially true on an individual
issue basis. Further, the media seemed to be celebrating how great the stock
market is. In fact, one announcer was talking about how in bull markets, stocks
start weak and finish strong (gee, I wonder where he read that?). So, it
wouldn’t surprise me if we saw a bit of a pullback in here. Therefore,
considering all of the above, stick with the long side but honor your
stops and look to take some profits if you haven’t already done so.
Looking to potential setups, Business Objects
(
BOBJ |
Quote |
Chart |
News |
PowerRating),
mentioned last night and in the improving software sector (a), still looks like it has the potential to resume its
uptrend out of a pullback.
Best of luck with your trading on Wednesday!
Dave Landry
P.S. For a limited time, my
Nightly Swing Trading Service is 15% off!
P.P.S. Reminder: Protective stops on
every trade!
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