Get Into The Groove

  • July 12, 2000
  • Dave Baker

Intraday Update

On the 5-minute chart of the Nasdaq
Mini Futures, the trend has been up, up, up. Watch for heavy action in the last
hour to give us an idea of what’s to come tomorrow. Futures traders should
continue to watch for bounces off the intraday trendline for opportunities to
get into the groove.

Intraday we see the Nasdaq
Composite reapproaching the high of its near-term trading range. We’re still
watching for a breakout from this base.

Today’s Watchlist: 
(
ALA |
Quote |
Chart |
News |
PowerRating),
(
DPAC |
Quote |
Chart |
News |
PowerRating),
(
FRX |
Quote |
Chart |
News |
PowerRating),
(
ROBV |
Quote |
Chart |
News |
PowerRating)

Alacatel
(
ALA |
Quote |
Chart |
News |
PowerRating) broke out on Friday
to a new high. We got our first continuation move on Monday, and continued into
a three-day move higher on Tuesday. Now we’re seeing a retracement to the
near-term uptrend. Watch for a bounce off this trend line when looking for
potential entries. Ideally, we want to see this pullback on lower volume than
the moves to the upside.

Dense-pac Microsystems
(
DPAC |
Quote |
Chart |
News |
PowerRating) has entered an uptrending
channel on the daily charts. While some traders may look to play bounces off the
top and bottom of the channel, I want to focus on the potential for a breakout.
Set your alerts just outside the top of the channel and watch for a breakout.
There is no overhead resistance because it is at an all-time high.

Forrest Labs
(
FRX |
Quote |
Chart |
News |
PowerRating) broke out two days ago on reasonble
volume. Wednesday we’re seeing a pullback to the breakout level. When it hit
there was a beautiful bounce off almost the exact point of the breakout. We don’t
often see textbook moves like that. Should it retrace more, watch for a pullback to the trend line that I highlighted below. Otherwise, watch for another
continuation move above intraday high set on Tuesday.

Robotic Vision Systems
(
ROBV |
Quote |
Chart |
News |
PowerRating) broke out to a new high on
Tuesday and put in a nice continuation move today. Unfortunately it’s already
pulled back. Look for another move above Wednesday intraday high,
following this retracement. Note the very high volume on Tuesday and Wednesday,
which suggests that there may some conviction in this move.

Until later, 

Dave Baker

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