When The Music Stops
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”>Do you swing? Read my latest trading
lesson,
Tenets Of Swing Trading.” As usual, your feedback
is welcome.
face=”Arial, Helvetica”>On Friday, the Nasdaq gapped lower
and began to sell off in what looked like a potential
massacre. Then it promptly reversed and began to rally.
After some chopping around in the afternoon, it ended up
closing on its high.
width=”470″ height=”320″>
face=”Arial, Helvetica”>Although up only marginally, it was
decent day when you consider the reversal.
face=”Arial, Helvetica”>Friday’s sharp rally from lows felt
a lot like short covering (a squeeze?). And one day does not
reverse a bear market. However, on the other hand, there are
a few decent longs that are set up tonight. So nibble, but
make sure you have a chair ready for when the music stops.
face=”Arial, Helvetica”>Looking to potential setups, Genzyme
(
GENZ |
Quote |
Chart |
News |
PowerRating), mentioned recently, was up nicely on Friday and
looks poised to take out its recent highs.
face=”Arial, Helvetica”>Dura Pharmaceuticals
(
DURA |
Quote |
Chart |
News |
PowerRating), on
the
From Highs List, began rallying out of a pullback on
Friday and looks poised to challenge its old highs.
width=”470″ height=”320″>
Gilead
Sciences
(
GILD |
Quote |
Chart |
News |
PowerRating), also on the
From Highs List, has formed a cup-with-handle. Quest
Diagnostics
(
DGX |
Quote |
Chart |
News |
PowerRating), on the same list, sold off on Friday,
but found support in its recent consolidation. This suggests
that its uptrend may still be intact. As usual, just wait
for follow-through to the upside.
On
the short side, Teradyne
(
TER |
Quote |
Chart |
News |
PowerRating), on the
From Lows List, is forming a narrow consolidation near
lows. Watch for a potential continuation of its downtrend
here. Plug Power
(
PLUG |
Quote |
Chart |
News |
PowerRating), on the same list, is an
inverted cup-with-handle.
Best
of luck with your trading on Monday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!