Mixed Signals

  • August 24, 2000
  • Dave Landry

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.

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face=”Arial, Helvetica”>At the time this is being published,
the Globex S&P futures are trading up 1.30 points and
the bond market is trading up 1 tick.

face=”Arial, Helvetica”>On Thursday, the Nasdaq rallied
above its recent resistance (around the 4,000 level) and
closed well. Although choppy, it was a decent day.

face=”Arial, Helvetica”>src=”https://tradingmarkets.com/media/images/Landry/otc082400.gif”
width=”470″ height=”320″>

face=”Arial, Helvetica”>The VIX hit new 13-month lows on
Thursday and is only 1 point away from taking out its July
1999 lows.

face=”Arial, Helvetica”>The market continues to behave well,
though. Once again, market bellwether General Electric
(
GE |
Quote |
Chart |
News |
PowerRating)
made new highs, as did tech giant Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating).

face=”Arial, Helvetica”>In the face of continued mixed
signals, I suppose that the best thing to do is to stick
with the strongest issues, honor your stops, and consider a
few candidates on the short side.

face=”Arial, Helvetica”>Looking to potential setups, SCI
Systems
(
SCI |
Quote |
Chart |
News |
PowerRating), on the href=”https://tradingmarkets.com.site/stocks/indicators/up/pull.cfm”>Pullbacks
Off Highs List, looks poised to rally out of a three-bar
pullback.

face=”Arial, Helvetica”>src=”https://tradingmarkets.com/media/images/Landry/sci082400.gif”
width=”470″ height=”320″>

face=”Arial, Helvetica”>Continuing on the pullback theme,
SPX Corp.
(
SPW |
Quote |
Chart |
News |
PowerRating), also on the href=”https://tradingmarkets.com.site/stocks/indicators/up/pull.cfm”>Pullbacks
Off Highs List, looks poised to rally out of a pennant
formation.

face=”Arial, Helvetica”>src=”https://tradingmarkets.com/media/images/Landry/spw082400.gif”
width=”470″ height=”320″>

face=”Arial, Helvetica”>Extreme Networks
(
EXTR |
Quote |
Chart |
News |
PowerRating),
mentioned href=”https://tradingmarkets.com.site/stocks/commentary/dlstoutlook/08222000-8062.cfm”>Wednesday
night, still looks interesting to me.

face=”Arial, Helvetica”>For you breakout players, Baxter
International
(
BAX |
Quote |
Chart |
News |
PowerRating), on the href=”https://tradingmarkets.com.site/stocks/indicators/up/n6dh.cfm”>New
60-Day Highs On Double Volume List, broke to new highs
on an expansion of range and volume out of a high-level
consolidation.

Best
of luck with your trading on Friday!

face=”Arial, Helvetica”>Dave Landry

P.S. Reminder:
Protective stops on every trade!