Upside push?
With the Dow, NASDAQ, Russell 2000, S&P Midcap, and Dow
Transports all
finishing up yesterday, and with decent action in the financials, it looks like the market is
trying to make a move to the upside.
The S&P 500 was off slightly, but it finished at the top of its range, as did some of the
oversold techs that appear on our target list today. Get long SPDRs (SPY) if the S&P 500 trades
above yesterday’s high of 1238.59. If it fails on the first move through, use this level as a
stop. Re-enter if it trades through this level again.
Target Stocks Of The Day Microsoft [MSFT>MSFT] and Cisco [CSCO>CSCO] both
are consolidating at their 50-day EMAs and offer continuation trades above yesterday’s highs.
America Online [AOL>AOL] could break out of a cup-and-handle pattern and run to the upside if it
moves above yesterday’s high. After a three-day pullback from new highs, Siebel Systems
[SEBL>SEBL] closed at the top of its range yesterday and should accelerate above 45 3/4.
The gaming stocks, which have pulled back after strong up moves, appear ready to resume their
uptrends. Look for entry in
Harrah’s Entertainment [HET>HET] and Mirage Resorts [MIR>MIR] above Monday’s highs.
Lucent [LU>LU] closed above its 50-day EMA on a re-cross at the top of its range; enter
above yesterday’s high. Providian [PVN>PVN] is coiled tightly in a narrow-range pattern and
will accelerate in the direction it breaks out. It’s in an uptrend; I would only play in the
direction of the trend.
Editor’s note: If you want to learn more about Kevin Haggerty’s trading strategies, click
on the link below to go to his new series of tutorial articles. Also, don’t forget Kevin’s
Live Forum tonight at 7:30 p.m. EST.