Free Falling

May 10, 2001
Duke Heberlein

Keep a chart of the three market indices on your screen, and look for stocks
with pattern setups that mimic the activity of the market. This will help you to
trade with the trend and get on stocks in the right direction, without being
whipsawed by emotional openings or futures-related pop-ups.

The Nasdaq Composite
(
COMPX |
Quote |
Chart |
News |
PowerRating) gapped up on the open and immediately began to
head south from its intraday high in this morning’s session.

Research In Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating) is alerted on the java
applet as it goes negative for the first time of the day at 10:20 Eastern. The
stock gives you a continuation entry when it violated the previous close and the
prior low. Traders were able to catch most of a 3 point move to the
downside.Â