Remain Skeptical And Nimble
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
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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 up 0.80 points and
the bond market is trading down 1 tick.
face=”Arial, Helvetica”>On Thursday, the Nasdaq lapped
lower, had a brief pullback, and then sold off — hard. It
did bounce and chop around from triple-digit losses, but the
selling resumed going into the close. This action has it
closing poorly and below the well-watched 200-day moving
average (a).
face=”Arial, Helvetica”>3,700 (b), the lows of the
consolidation, becomes the next logical target. After that?
The May lows (3,042).
src=”https://tradingmarkets.com/media/images/Landry/otc072700.gif”
width=”470″ height=”320″>
face=”Arial, Helvetica”>So what do we do? Obviously, the
market is oversold and due for a bounce. However, this isn’t
reason enough for me to get too excited. Therefore, remain
skeptical and nimble until the situation improves.
Looking
to potential setups, Genzyme Transgenics
(
GENZ |
Quote |
Chart |
News |
PowerRating), on the
<a
href=”https://tradingmarkets.com.site/stocks/indicators/up/pull.cfm”>Pullbacks
From Highs List, is a two-step pullback that looks like
it might have one more rally back to old highs left in it.
src=”https://tradingmarkets.com/media/images/Landry/gztc072700.gif”
width=”470″ height=”320″>
Continuing
on the pullback theme, Celestica
(
CLS |
Quote |
Chart |
News |
PowerRating), also on the <a
href=”https://tradingmarkets.com.site/stocks/indicators/up/pull.cfm”>Pullbacks
From Highs List, looks poised to rally out of a deep
pullback.
For
you breakout players, SLM Holdings
(
SLM |
Quote |
Chart |
News |
PowerRating), on the <a
href=”https://tradingmarkets.com.site/stocks/indicators/up/pmlt.cfm”>Proprietary
Momentum List, closed at a new six-month high and
looks poised to take out its recent highs. Univision
Communications
(
UVN |
Quote |
Chart |
News |
PowerRating), on the same list, is forming a
high-level pennant and looks poised to break higher.
On
the short side, Millipore
(
MIL |
Quote |
Chart |
News |
PowerRating), on the <a
href=”https://tradingmarkets.com.site/stocks/indicators/down/pbsl.cfm”>Pullbacks
From Lows List, failed in its rally back to the 50-day
exponential moving average, and it looks poised to resume
its meltdown.
Best
of luck with your trading on Friday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
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