Why The Lack Of Follow Through Doesn’t Bother Me (Yet)
Smoke ’em If You Got ’em
Integrated Silicon Solutions
(
ISSI |
Quote |
Chart |
News |
PowerRating), mentioned
recently, continued higher on Thursday (a) before reversing to close lower.
Remember, when you get a nice, quick profit, make sure you lock in a piece and
move your protective stop* on your remaining shares to breakeven.
Looking to the indices, on Thursday, the Nasdaq opened weak
and then chopped back and forth. Although it ended on a high note, it was unable
to close in the plus column.
The S&P put in a similar performance.
So what do we do? Ideally, I would have
liked to see some follow through from Wednesday’s solid rally. However, even
though we didn’t get this, the market didn’t come unglued either. So far, this
might just be the “pause that refreshes.” True, there were a few
debacle de jours (e.g. Wal-Mart) but overall, most sectors and stocks within
them remain in strong uptrends. Therefore, continue to focus on the long side
but wait for market, sector and stock confirmation (i.e. entries).
Looking to potential setups, Zimmer Holdings
(
ZMH |
Quote |
Chart |
News |
PowerRating) in
medical appliances and equipment, still looks like it has the potential to resume its
persistent uptrend out of a pullback.
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.
*I’ll discuss price based stops in Friday’s
column.