Cyclical Schlichical
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.
Tonight we updated our Cup and Handles List. I especially like Ameritrade [AMTD>AMTD] (cychlickal smchlichical!), in the strong Broker/Dealer Sector [$XBD.X>$XBD.X], which appears to be breaking out (a) of a low level saucer and handle formation. Metricom [MCOM>MCOM] also looks interesting to me.
Several stocks on the Pullback List look interesting to me tonight. Preview Travel [PTVL>PTVL] looks poised to break out of a pennant formation (or if you prefer mini triangle). Emulex [EMLX>EMLX] is a Trend Knockout (see archive from last night for an example of the pattern). And finally, Open Market [OMKT>OMKT] closed well and looks poised to rally out of its pullback.
For you breakout players, CheckFree [CKFR>CKFR], on the New 60-day Highs on Double-Volume List, broke to new highs today on an expansion of range out of a cup formation.
On the short side, Waters Corp. [WAT>WAT], on the Proprietary Implosion List, appears to be resuming its meltdown.
Best of luck with your trading on Monday!
Dave Landry
PS – Reminder: Protective stops on every trade!