Fed Up

  • June 28, 2000
  • Dave Baker

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There comes a point in time where you simply don’t want to hear about the Fed
anymore, and you just wish they would release any  decision. 

The number is out, the Fed left
rates unchanged.

Now that the meeting is over, and the media has nothing to dwell on for a
couple of days, I’m going to go through my usual post-major-event routine. Here’s my checklist for what I’ll be doing
tonight: 

  •     Note the stocks that broke out on the Watchlist, based
    on closing prices

  •     Determine entry points for continuation moves on the
    breakout plays

  •     Quickly skim the news surrounding the stocks and
    options that I’m watching

  •     Set my alerts 1/2 point below and at the entry points

  •     Update my list of 30 to 50 hot movers, which I watch
    for intraday setups

  •     Finally, I’ll head over to one of my favorite
    restaurants for the chicken marsala

    

Today’s Updates:
(
AGN |
Quote |
Chart |
News |
PowerRating)

Allergan
(
AGN |
Quote |
Chart |
News |
PowerRating) is showing another
continuation move as it sets a new all-time high.

Today’s Watchlist:
(
NT |
Quote |
Chart |
News |
PowerRating),
(
TMO |
Quote |
Chart |
News |
PowerRating),
(
MMCN |
Quote |
Chart |
News |
PowerRating),
(
SBAC |
Quote |
Chart |
News |
PowerRating),
(
BRCM |
Quote |
Chart |
News |
PowerRating)

Nortel Networks
(
NT |
Quote |
Chart |
News |
PowerRating) has traced out
a nice cup with handle formation. What’s the game plan? Watch for a new closing
high, followed by a continuation. Should we see this new all-time high, we’ll
set our alerts a bit above the intraday high of the breakout day. For now, set
your alerts at the all-time high, then wait.

Thermo Electron
(
TMO |
Quote |
Chart |
News |
PowerRating) continues to rise, following the
breakout from its trading range. Set your alerts near 22 1/2 as we wait for it
to make another move higher. Watch for resistance near 25 and again at the
all-time high. A move below 20 would invalidate the current pattern, so I’m
setting an alert there as well. Closing below 20 would put it back into the
trading range.

MMC Networks
(
MMCN |
Quote |
Chart |
News |
PowerRating) continued to follow its trendline
north. If the pattern continues this way, it should soon take out its all-time
high. Although it’s still roughly 10% away, these days, a move that large could
take place in five minutes. Set your alerts near 60 3/4, as we watch for a
bigger-picture cup pattern to form.

SBA Communications
(
SBAC |
Quote |
Chart |
News |
PowerRating) is a little more than a point
away from the breakout level. Set your alerts near 55 as we watch for a move.
Remember that there are two ways to trade a breakout like this. Daytraders can
catch the initial move, while swing traders will want to watch for a
continuation following a closing high above the breakout level.

   

Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating) is approaching a key level on Wednesday as
well. In fact, as I write this it is moving above this level. Should it be able
to closing above 191, we’ll watch for a continuation move on Thursday. As
always, note the next two resistance levels, which are at 200 (psychological)
and 215 (technical).

Until later, 

Dave Baker

Waiting in the Wings:
 Newport
(
NEWP |
Quote |
Chart |
News |
PowerRating) – it’s still moving.

 

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