Another Sign
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”>Do you swing? Read my latest trading
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Tenets Of Swing Trading.” As usual, your feedback
is welcome.
face=”Arial, Helvetica”>At the time this is being published,
the Globex S&P futures are trading 0.70 points lower and
the bond market is trading up 1 tick.
face=”Arial, Helvetica”>On Wednesday, as expected, the
Nasdaq gapped higher (a) on the positive Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating)
earnings. And, as feared, this turned out to be a pop-up
opening (see
commentary). The market quickly found its high and
dropped for most of the morning. After chopping around for
most of the afternoon, the selling resumed late in the day.
This has the Nasdaq closing poorly (b) and well below its
50-day and 200-day moving averages.
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face=”Arial, Helvetica”>Wednesday’s action was another sign
of the bear: no follow-through on the positive news. In
fact, it appears that the morning’s pop-up opening was an
opportunity for funds to bail and possibly get short.
face=”Arial, Helvetica”>Also of interest is that the VIX
remains near its lowest levels since February, and may be in
the process of reversing, as evidenced by a CVR II Sell
Signal on the
Bias Page. The S&P confirms this action, as it
formed a bearish outside day down on Wednesday (a).
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face=”Arial, Helvetica”>Based on the above, it still looks
like we remain in retracement-from-lows mode. Therefore,
continue to look for shorts, and only nibble on the long
side.
face=”Arial, Helvetica”>Genzyme
(
GENZ |
Quote |
Chart |
News |
PowerRating), on the
From Highs List, survived the Eli Lilly
(
LLY |
Quote |
Chart |
News |
PowerRating)
debacle-de-jour, and looks like it has the potential to make
another stab at its old highs.
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For
you breakout players, Cerner Corp.
(
CERN |
Quote |
Chart |
News |
PowerRating), on the
10 Technology List, is forming a narrow consolidation at
higher levels and looks poised to break higher.
On
the short side, Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating), mentioned
Tuesday night and on the
From Lows List, still looks poised to resume its
downtrend — I know: They beat estimates after the close.
Teradyne
(
TER |
Quote |
Chart |
News |
PowerRating), also mentioned Tuesday night and also in
the weak semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), still looks interesting to
me.
Dell
Computer
(
DELL |
Quote |
Chart |
News |
PowerRating), also mentioned Tuesday night and also
on the
From Lows List, still looks poised to resume its
downtrend.
Best
of luck with your trading on Thursday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!