Easing Into It
It looks like traders have yet to see the
volume that they were expecting. But it is unreasonable to expect
to see an immediate volume spike. After summer, traditionally,
trading slowly starts to pick up again. Though, something to note
is tht this has not been your traditional year. The action in
April and May may have changed things. Perhaps October will be
our best month instead of the worst. Only time will tell.
Today’s Watchlist:
(
AMAT |
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PowerRating),
(
YHOO |
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News |
PowerRating)
Applied Materials has been
in a steady downtrend since setting a high in late March and
early April. On Friday it made another run into the resistance
line, but was unable to clear it. Currently, it is testing the 50-day
MA, which has acted as a sort of pivot point between the top and
bottom of the downtrend. Traders may want to watch for a short
opportunity based on a closing move below the 50-day MA.
Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating) remains stuck in a trading range. It has
been consolidating in the same area for over four months. As it
approached the low of the range once again, we will make sure
that our alerts are set. There are two ways to trade this type of
setup. Because the range is large, traders may want to try to
simply “buy low, and sell high” (for longs and shorts).
The other method is to wait for a closing move outside of the
trading range and then go long (on an upside breakout) or short (on
a downside breakdown). Either way, the best method to use is the
one that suits your personality. Set your alerts near the high
and low of the range.
Until later,