Looking Back

  • October 21, 1999
  • David 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.

At the time this is being published, the S&P Globex Futures are trading 1.70 points lower and the Bond Market Futures are trading down 1 tick.

Lately, I’ve been talking about following up on stocks as long as they don’t do anything “wrong”. Over the past week or so, even under treacherous market conditions, Ask Jeeves [ASKJ>ASKJ] has held up well forming the handle of a cup and handle formation (a). Then yesterday, it formed a Trend Pivot Pullback (b) pattern (see archive from last night for a detailed description of the pattern). Today, it finally broke out (thank goodness as I thought it was becoming another one of my “nemesis” stocks!). As you can see, it’s often worthwhile watching stocks as long as they don’t do anything wrong.



EchoStar Communications [DISH>DISH], on the Pullbacks List, closed well and is forming a high level “micro” cup and handle.



CMG Inc. [CMGI>CMGI], mentioned last night and in the strong Internet Sector [$DOT.X>$DOT.X], looks poised to rally out of cup and handle formation.

For you breakout players, I2 Technology [ITWO>ITWO], on the Proprietary Momentum List, formed a bullish outside day and closed at a new high. Nokia [NOK>NOK], on the New 60-day Highs on Double-Volume List, broke to new highs on an expansion of range out of a big picture cup and handle formation. If you’re not a breakout player, wait for the next pullback here.

On the short side, [NCI>NCI], on the New 60-day Lows on Double Volume List, appears to be breaking down out of an inverted cup and handle formation. Unisys [UIS>UIS], on the Implosion 10 Technology List, looks poised to resume its meltdown.

Best of luck with your trading on Friday!

Dave Landry

PS – Reminder: Protective stops on every trade!