Xerox Copies Apple

I’m pleased to announce that we recently launched the Trader’s
Galleria
. Check it out, there you’ll find books, software, trading courses,
computers and just about everything else a trader needs to be successful. You
can even pre-order my upcoming book on swing
trading
at a 20% discount.

Heads up! After the
close, Xerox
(
XRX |
Quote |
Chart |
News |
PowerRating)
announced that they would have an earnings shortfall. The
stock is taking about a 20% haircut in early after hours trading. The good news
is that the index futures, so far, are having a muted response.

On
Monday, the Nasdaq continued its bad behavior–lapping open (a) then selling off
and closing poorly (b) for a solid trend day lower. 

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Monday’s
action takes out the minor support at 3600. Next stop? The August lows (c)
followed by a re-test of the June lows (d). Of course, this doesn’t mean
that we will definitely go there, it just gives us a framework to work
within. 

Looking
to potential setups, Cache Flow
(
CFLO |
Quote |
Chart |
News |
PowerRating)
, numero uno on our 
Pullbacks
Off Highs List
, looks like it has the potential to resume its uptrend out of
a four-bar pullback. Just wait for follow through to the upside here as it did
close poorly on Monday.

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Unicom
(
UCM |
Quote |
Chart |
News |
PowerRating)
, on the  Proprietary
Momentum List,
is a Trend Knockout (TKO).

On the short side, SCI
Systems
(
SCI |
Quote |
Chart |
News |
PowerRating)
, mentioned Thursday night, still looks vulnerable.

Sprint PCS
(
PCS |
Quote |
Chart |
News |
PowerRating)
, on the Pullbacks
Off Lows List
, gapped higher on the open (a) but reversed to close
poorly (b). This suggests its downtrend remains intact.

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Best
of luck with your trading on Tuesday!

face=”Arial, Helvetica”>Dave Landry

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