You Can’t Always Get What You Want
On Tuesday, the Nasdaq opened somewhat firmer
and mounted a
brief rally. It then dropped sharply but found its low quickly and chopped back
and forth for the remainder of the day. This action sets the index up as a
pullback from lows.
The S&P put in a somewhat similar performance. It ended
just about where it started.
So what do we do? As anticipated, the Nasdaq set up as a
pullback from lows. This, combined with negative sector action in many of the
techs suggests that it could head lower. I’d like to see some timing signals in
addition but, like Mick says: “you can’t always get what you want, but if
you try sometimes, you just might find, you get what-cha need..aw yea-ah.”
With that said, look for shorting opportunities in the tech issues.
Looking to potential setups,
Emulex
(
EMLX |
Quote |
Chart |
News |
PowerRating) looks
poised to continue its rollover out of an inverted cup and handle/Bow Tie-like
formation.
For those with big ones*, volatile
Nvidia
(
NVDA |
Quote |
Chart |
News |
PowerRating) looks
poised to continue lower out of a similar rollover situation.
Coach, should I stay or go?
Recently, I had discussed that breakeven plus
would be a good place for a stop (after taking partial profits) on Coach Inc.
(
COH |
Quote |
Chart |
News |
PowerRating)
(see archives on the bottom right side of this page for more details). I
also discussed that the recent
lows (a) would be a good place for a trailing stop. Let’s assume that this stop
still stands. If the stock continues to rally, we will look to trail at two to
three bar lows.
Smokin’ In The Brick House
On Monday
night, I talked about the importance of taking
partial profits using Beazer Homes
(
BZH |
Quote |
Chart |
News |
PowerRating) (mentioned last Friday) as an
example. On Tuesday, the stock gapped higher and continued higher on its
brother’s TOL’s earnings. Again, when blessed with such quick profits, don’t be
afraid to “smoke ’em if you got ’em” (lock in partial profits).
Thanks for all the entries for 1-month free to my trading
service. The correct answer was any reference to the three little pigs
mentioned on Friday. I’ll have a winner picked from the correct answers on
Wednesday.
Best of luck with
your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
*Accounts.
“….Give a person a fish or teach them to fish I believe is an appropriate metaphor – I know traders who will lose 10k in a day but balk at paying $100 bucks for your fishing
pole — best book in my trading library. Column continues to be great, no bs.
Thanks,”
Pete….
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