New York, New York
Again, we see light trading and choppy movements in the markets.
A few of the bigger names are strong, but otherwise there is not much action,
Two weeks ago, I took a look at the NYSE Composite. It hit a new
high on Tuesday, suggesting that the broader market is gaining some strength.
Traders should remember to look at the issues on the NYSE as well as on the
Nasdaq.
Today’s Watchlist:Â Â
(
DISH |
Quote |
Chart |
News |
PowerRating),
(
VSTR |
Quote |
Chart |
News |
PowerRating),
(
NMSS |
Quote |
Chart |
News |
PowerRating),
(
MACR |
Quote |
Chart |
News |
PowerRating)
Echo Star Communications
(
DISH |
Quote |
Chart |
News |
PowerRating) looked like it was making a low-level
breakout on Wednesday, but it hit the same resistance level that it found during
the false breakout from July. Daytraders should watch for another attempt to
cross the breakout level. Be aware of resistance near the July high as well as
the next two levels that I’ve highlighted below. Each of these areas may prevent
the stock from moving higher.
Voicestream Wireless
(
VSTR |
Quote |
Chart |
News |
PowerRating) is one to add to the Shortlist.
Set your alerts near 100 as we watch for a move below Tuesday’s intraday low.
The stock has yet to recover since breaking its 50-day MA. Should you take a
short position, watch for support near the May lows. In the bigger picture, VSTR
may have traced out a head-and-shoulders pattern, which is quite bearish.
Macromedia
(
MACR |
Quote |
Chart |
News |
PowerRating) media has a similar structure to that of VSTR. In this
case, though, it gapped lower on a news-driven move and rebounded intraday in
late July. Tuesday’s action led to a retest of near-term support. At this point,
we should watch for a move below Tuesday’s intraday low. The action on Wednesday
is still bearish because it is consolidating near its lows and has been unable
to retake some of its losses from yesterday.
Natural Microsystems
(
NMSS |
Quote |
Chart |
News |
PowerRating) hit a new high on Tuesday and
provided a daytrading opportunity on Wednesday on the follow-through move.
Unfortunately it was unable to hold its position. Daytraders should watch for a
second move back through the breakout level, as well as a move above Wednesday’s
intraday high. Swing traders should watch for a new closing high followed by a
third move higher on Thursday. This type of failed action that we are seeing in
NMSS reflects the weak attitude of the market.
Â
Until later,Â