The market logged a distribution day, with heavy selling at the end of the day, indicating that institutions were selling. Volume has been pretty low in this rally, so this heavy volume is noteworthy and could indicate more selling to come.

There were three stocks from the Watchlist that triggered today. They could have offered a profit for nimble day traders, but all three closed well below the entry point, although a couple still look technically good.

AKS held up until the end of the day.

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FLS gapped up into the entry price, meaning it should have been an avoid at the open. It did hit the entry price again after pulling back, but it was then clear that the market was in trouble, making this an avoid. It held up fairly well though considering todays action. It wasn’t ready to run today, but could if the market rebounds here.

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MPWR hit the entry price, and then grinded lower the rest of the day.

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Stocks did seem to find some support toward the end of the day. It will be interesting to see if this support holds tomorrow, or if we continue moving lower.

I don’t have many charts to consider for tomorrow. I would like to see if we move lower, or recover and resume the uptrend. We could see some volatility first.

Trade Ideas for 05/08/08:

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Good luck and good trading!