Banking On Banking

Index
Checkup:
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The financials remain
strong, and the banking index is a big part of it. This index is a leader. We
will now have to watch to see if this most recent breakout continues.

 

Today’s Watchlist: 
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,
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Cabletron Systems
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has been in a trading range for
several days now. The key to this pattern is that the high of the range is near
the unfilled gap area from several months ago. Also noteworthy is the consistent
volume during this period. Look for a move outside of the range. If it
breaks to the upside, look for it to fill the gap. If it breaks to the downside,
look for support at 30.

Alza
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broke out of a near-term consolidation as well on
Friday. If the volume is strong, watch for a continuation move on Monday to
offer a potential long opportunity. The drug makers and biotechs have been
strong too, so it’s always good to have a few names to watch in the sector. 


Until later, 

Dave Baker