Thursday, July 24, 2014

NASDAQ remains posied for a breakout or stuck in a trading range

After a nice two-day advance, NASDAQ remains poised to set a new near term peak, little more than 12 points below the near-term peak on July 3rd. Close... but yet so far away. It could indeed happen, but sometimes there just isn't enough actual momentum, and what traders call "resistance". NASDAQ could also simply be nearing the upper edge of a trading range and actually be poised for a reversal. Even if NASDAQ does technically rally above and even close above the recent near-term peak, the question will remain whether it did so with enough conviction to sustain an ongoing rally as opposed to climaxing and then withdrawing.
 
NASDAQ futures are up enough to pop above that near-term peak at the open, but the question remains whether people will pile onto that rally or sell into that rally. And then whether they will buy on dips or pile on to them on the short side.
 
Facebook (FB) had very decent quarterly results. It's my largest holding, so I may sell a little more on the pop. I also hold call options which I may sell to lock in the gains.
 
I'm hoping to pick up some TripAdvisor (TRIP) on a big dip at the open. I don't hold it currently, but it has been on my list to buy.
 
-- Jack Krupansky

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