EKG
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.
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.
face=”Arial, Helvetica”>At the time this is being published,
the S&P Globex futures are trading down 1 point and the
bond market is trading down 1 tick.
face=”Arial, Helvetica”>It was quite a choppy day in Tech
Land. On Tuesday, the Nasdaq lapped slightly higher and
quickly found high. It then proceeded to sell off and took
out Monday’s low. However, just when it looked like another
free fall, the index reversed. It then rallied back and
forth throughout the day in a pattern that looked a lot like
an EKG.
width=”470″ height=”320″>
face=”Arial, Helvetica”>In spite of the intraday volatility,
the index is somewhat constructive on a daily basis.
After all, it found support (a) in the recent consolidation
and managed to close well (b). Also, the early-morning
action may have attracted a few shorts who might just need
to cover on Wednesday.
face=”Arial, Helvetica”>So once again, even though Tuesday
was better than Monday, I see no reason to get too bullish
— at least until we get a meaningful rally back out of the
consolidation.
Looking
to potential setups, Power One
(
PWER |
Quote |
Chart |
News |
PowerRating), on the
From Highs List, seems to be recovering after Monday’s
slide (a). This suggests that its uptrend remains intact,
and also suggests that there may be a few who shorted too
early who will need to cover.
width=”470″ height=”320″>
Continuing
on the pullback/shakeout theme, Manugistics
(
MANU |
Quote |
Chart |
News |
PowerRating) sold
off hard earlier in the day but reversed and somehow managed
to close up on the day. This action may have shaken out the
weak hands and could clear the way for the stock to trade
higher.
Interwoven
Technologies
(
IWOV |
Quote |
Chart |
News |
PowerRating), mentioned last night and also on
the
From Highs List, still looks like it has the potential
to rally out of a pullback. Once again, just wait for it to
take out a trendline from highs, as it has already had a few
false starts.
For
you breakout players, Go 2 Net
(
GNET |
Quote |
Chart |
News |
PowerRating), on the
60-Day Highs On Double Volume List, broke to three-month
highs out of a wide-and-loose base on decent volume and
range. Sanmina
(
SANM |
Quote |
Chart |
News |
PowerRating), on the
10 Technology List, is consolidating at higher levels
and looks poised to break higher.
On
the short side, Synopsys
(
SNPS |
Quote |
Chart |
News |
PowerRating), mentioned Monday night
and on the
From Lows List, still looks vulnerable.
Best
of luck with your trading on Wednesday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!