Checking My Eyelids For Pinholes
face=”Arial, Helvetica”>Each evening we focus on the most
interesting aspects for the upcoming trading day. The
comments are based on observations of the nightly updates of
the Stocks/Sectors and Market Bias pages. They are provided
for educational purposes only and are not intended to be
direct trading advice. Also, keep in mind that these remarks
are made up to 12 hours in advance of the markets opening.
Therefore, overnight events may alter the outcome of these
observations.size=”2″ helvetica>
size=”2″ face=”Arial, Helvetica”>Join me, fellow
TradingMarkets.com content providers, and other traders and
money managers at the Trading Markets 2000 conference at the
Venetian Hotel Resort and Casino in Las Vegas on October
13-15, 2000.
Due
to a scheduling conflict, Dave Landry is unable to write his
Stock Trading Outlook tonight (Friday). Tonight’s column is
written by TradersWire’s Duke Heberlein. Dave will be back
on Monday, August 21.
Did any of you
have trouble staying awake Friday like I did? The Nasdaq
opened, found its high in the first half hour of trading,
and then proceeded to languidly slide lower over the rest of
the trading session. A half-hearted attempt by the Composite
in the last hour to rally off its intraday lows produced
nothing, and the index gave it all back in the last 20
minutes. This action has it closing poorly — back down
below its 200-day moving average, and near the area of the
converging 20-day, 50-day, and 200-day moving averages.
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Unfortunately
— and to reiterate what has been sounding like a broken
record during this choppy summer — you must keep on your
toes. In spite of the fact that we had a fifth straight high
on an intraday basis, Friday’s poor close — combined with
three down arrows on the
Bias Page — does not give me high hopes for a strong
Monday. If you can’t (or won’t) take off and go fishing,
then continue to dabble only in the best setups for the long
side, and keep some shorts in the bullpen, in the event we
do head south.
Looking
ahead to potential setups, Quest Diagnostics
(
DGX |
Quote |
Chart |
News |
PowerRating),
mentioned by Dave over the past couple of nights, looks like
it may finally be ready to continue with its uptrend and to
rally out of its recent pullback. As always, remember to
wait for follow-through. Biovail
(
BVF |
Quote |
Chart |
News |
PowerRating), also mentioned
by Dave lately, is showing signs of starting to move back up
out of a running cup-with-handle.
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MMC
Networks
(
MMCN |
Quote |
Chart |
News |
PowerRating), from the
Momentum List, is consolidating into an inside day in
the middle of a fast move higher. Since fast-moving stocks
don’t pause for too long, be ready, because this could start
another leg up.
Analog
Devices
(
ADI |
Quote |
Chart |
News |
PowerRating), on the same list, has broken out over
resistance, and appears to have the potential to make a run
at its all-time highs.
The
St. Paul Companies
(
SPC |
Quote |
Chart |
News |
PowerRating), on the
From Highs List, closed in the top portion of its range,
and looks poised to rally out of a slightly extended
pullback.
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Keeping
an eye on the short side, Allegiance Telecom
(
ALGX |
Quote |
Chart |
News |
PowerRating)
still looks as if it could resume its meltdown, and Dell
Computer
(
DELL |
Quote |
Chart |
News |
PowerRating), on the
From Lows List, appears to be ready to continue its
downtrend.
Best
of luck with your trading on Monday!
P.S.
Protective stops on every trade!