Range Bound
With Greenspan talking all week, triple witch on Friday–not to
mention Dow 10,000 (media number) that lasted for a blink of an eye–we sit and wait for the
market to make a move, one way or the other. Unless you have a straddle on, don’t waste your time thinking about it, just keep playing the
momentum stocks that are moving in your direction–up.
The techs acted well yesterday with more accumulation in some of the most recent
casualties, like Compaq (CPQ), Oracle (ORCL), and Dell (DELL), and consolidation breakouts in
Microsoft (MSFT) and EMC (EMC). Consolidations and breakouts at the 50-day MAs of some of
the tech names have provided good trading opportunities (as they most often do).
Key point: The best intraday pullback trades come from stocks that open, advance, pull back,
hold above their opening prices, then start advancing again (with you on board for the ride).
Target Stocks Of The Day  Look for continuation entries in Cisco [CSCO>CSCO],
Lucent [LU>LU],
Abercrombie & Fitch [ANF>ANF], Gap [GPS>GPS],
Applied Materials [AMAT>AMAT], Ascend Communications [ASND>ASND], Adaptec [ADPT>ADPT], EMC
[EMC>EMC],
MCI Worldcom [WCOM>WCOM], and LSI Logic [LSI>LSI].
Stocks under accumulation that are ready to advance from excellent base patterns include
Northern Telecom [NT>NT], Williams Companies [WMB>WMB], and Pepsi [PEP>PEP]. These are better
position trades than intraday trades. Monsanto [MTC>MTC] broke out of its 50-44 box and
showed positive accumulation yesterday after a six-week base period.
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.