Easy Money

  • September 13, 2000
  • Dave Baker

There seems to be a lot of excitement
once again. It seems that all of the activity is revolving around indecision.
The bulls and bears fighting it out, resulting in the trading range we see
in the Nasdaq. Continue to focus on individual issues. If you are trading any of
the “big boys,” make sure to keep one eye on the broader market. 

The move this morning in the futures
was an indication to watch for a reversal. When things like this occur, I look
for some big boys to pick up on the cheap and grab a point on. I call this “easy money.” I remember when Brazil devalued its currency overnight and something similar happened.

This morning, let’s take a
look at some lesser known names and one of the big boys on the NYSE.

Today’s Watchlist: 
(
BELM |
Quote |
Chart |
News |
PowerRating),
(
ASYS |
Quote |
Chart |
News |
PowerRating),
(
NT |
Quote |
Chart |
News |
PowerRating)

Bell Microproducts
(
BELM |
Quote |
Chart |
News |
PowerRating) has been
consolidating near its recent highs. The retracement on Tuesday took it back to
the near-term trendline. If this trendline provides the necessary support, the
stock may be able to bounce enough to take out the high set last week. Only the
tape will tell where its going. Set you alerts near the all-time high. Other
traders may want to watch for a break of the trendline to offer a short
opportunity.

Amtech Systems
(
AMTC |
Quote |
Chart |
News |
PowerRating)
is another stock on the retracing list. After setting a near-term high following
a fast move off the $5 mark, AMTC spent the last two weeks giving back a bit of
its gains. Each of the moves lower has been reasonably slow. It looks poised to
test the 15 area, but let’s not speculate. Rather, watch for short opportunites
based on moves below the support level highlighted below, as well as a second
potential setup on a move below 14 1/2 to 15. 

The one big boy on the
list this morning is Nortel
(
NT |
Quote |
Chart |
News |
PowerRating). Nortel’s recent weakness has set it up for
a potential short. It closed just over support on Tuesday and broke it intraday.
Watch for a move under this area to potentially lead to 62, the next support
area.  The volume has been rather strong in the past few days, so
definitely keep and eye on it.

 


Until later, 

Dave Baker