Nasdaq Gets Jiggy With It

  • July 25, 2000
  • Dave Baker

Intraday Nasdaq Check
Up

First the techs were headed up, then
they moved down, and now they’re recovering. The whipsaw may have been fun for
us daytraders, but I’ll bet it’s scaring those Gillette
(
G |
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PowerRating) and Coca-Cola
(
KO |
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PowerRating)
zealots. Of course, I believe in diversification as much as the next person, but
those people who haven’t adjusted to the more volatile situation of today’s
markets may be trembling in their shoes.

Let’s take a look at those crazy
futures once again.

 

Today’s Watchlist: 
(
HWP |
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PowerRating),
(
AMCC |
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PowerRating),
(
AMD |
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PowerRating),
(
BEAS |
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News |
PowerRating)

Hewlett-Packard
(
HWP |
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PowerRating) plummeted last week and continued
lower this week. It tested the gap level this morning, but held. It’s currently
trading below the 50-day MA. We’ll watch HWP for both a bounce off support and a
breakdown. Should it break down, watch for more support to kick in just under 110.
Should it bounce, watch for it to take out the intraday high from Monday. After
the close, set your alerts just over the intraday high. If it closes below support,
watch for a continuation move.

 

Applied Micro Circuits
(
AMCC |
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PowerRating) broke out to new highs last
week and entered a consolidation pattern. Right now I’m adding it to the
Watchlist so that we can watch for another breakout to new highs. I’ve seen
numerous failed continuations over the past few weeks. Each time I see this type
of failed move, I’m reminded why I’m primarily a short-term trader. 

Tech volume has been light this week, thus the continuation
moves that we may potentially see could be short-lived. Don’t get thrown off
course by the hopes of huge three-month moves.

 

Advanced Micro Devices
(
AMD |
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PowerRating), despite the volatility you may
see at first glance, has actually been somewhat range-bound for some time now.
Watch to take advantage of bounces and bumps as well as breakouts. As I
mentioned above, many breakouts have not seen continuation moves, so continue to
lock-in profits to reduce drawdowns.

BEA Systems
(
BEAS |
Quote |
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News |
PowerRating) has entered a short-term descending-triangle pattern. In a breakdown situation, watch for potential support at both
50, and at the breakout level that I’ve highlighted below. On the other hand,
with so much uncertainty in the market, I’m also going to watch for a rally to
the upside, out of the top of the triangle. Much like you would watch a bullish
flag pattern, look for a similar move out of the triangle.

Until later, 

Dave Baker

 

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