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Thursday, August 07, 2003 11:39:01 PM
Trading Ideas
by Dave Landry, Director of Research
TradingMarkets.Com
http://www.hardrightedge.com/ideas.htm
The S&P was also choppy but did manage to generally work its way higher. It remains below its recent trading range (overhead resistance) and below its 50-day moving average.
Looking to the sectors, many have formed tops or are in downtrends. These include, but not limited to biotech, homebuilders, Internet, HMOs, utilities, selected insurance, computer hardware and financial stocks in general.
So what do we do? I remain concerned about the indices. Should the rally return, they will have to work their way through overhead resistance. Further, I'm also concerned about the number of sectors that are in either bona fide downtrends or that have recently formed tops. And lastly, tonight (Thursday) after flipping through hundreds of charts over and over again, I was unable to find any meaningful longs. Therefore, if I had to pick a direction, I still think the short side might offer the best opportunities. However, you might want to wait for a more decisive break lower in the indices before getting too aggressive.
Looking to potential setups, on the short side, Stratasys (SSYS), in the weak computer hardware sector, looks like it has the potential to continue lower out of an inverted cup and handle.
by Dave Landry, Director of Research
TradingMarkets.Com
http://www.hardrightedge.com/ideas.htm
The S&P was also choppy but did manage to generally work its way higher. It remains below its recent trading range (overhead resistance) and below its 50-day moving average.
Looking to the sectors, many have formed tops or are in downtrends. These include, but not limited to biotech, homebuilders, Internet, HMOs, utilities, selected insurance, computer hardware and financial stocks in general.
So what do we do? I remain concerned about the indices. Should the rally return, they will have to work their way through overhead resistance. Further, I'm also concerned about the number of sectors that are in either bona fide downtrends or that have recently formed tops. And lastly, tonight (Thursday) after flipping through hundreds of charts over and over again, I was unable to find any meaningful longs. Therefore, if I had to pick a direction, I still think the short side might offer the best opportunities. However, you might want to wait for a more decisive break lower in the indices before getting too aggressive.
Looking to potential setups, on the short side, Stratasys (SSYS), in the weak computer hardware sector, looks like it has the potential to continue lower out of an inverted cup and handle.
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