No Busto, But No Gusto
Make sure to register for the
upcoming course “The Baker/Ten Electronic Trading Course”, starting
July 7. Click
here to go to the registration page.
My latest trading lesson, Finding
Intraday Trendlines for Daytrading Part I, is also available now.
In Trading the Techs PM, we’ll take a
look at an example of my favorite intraday setup, as well as prepare ourselves
for upcoming moves.
Today’s Watchlist:Â
(
ISSI |
Quote |
Chart |
News |
PowerRating),
(
PCS |
Quote |
Chart |
News |
PowerRating),
(
MFNX |
Quote |
Chart |
News |
PowerRating),
(
CHKP |
Quote |
Chart |
News |
PowerRating),
(
MERQ |
Quote |
Chart |
News |
PowerRating)
Integrated Silicon
(
ISSI |
Quote |
Chart |
News |
PowerRating)
had a volume-backed break out last week. On Monday we see the fourth pullback
day as ISSI retraces to its near-term trendline. How do we play it? The
answer lies in your trading style. While aggressive traders may enter on a
move above the high of the third pullback day, the conservative trader may look
for it to set a new high. The moral of the story: There are many ways to trade
each pattern.Â
Sprint PCS
(
PCS |
Quote |
Chart |
News |
PowerRating),
which I like to call a techesque stock, may be a making a short-term move based
on last Thursday breakout and Friday’s continuation. Look for a short-term
opportunity as it may move to the next resistance level. The intermediate-term
trader should focus on the cup that has been forming over the last few weeks.
Anyone with the latter perspective should set their alerts near the March high.
Note the accelerating volume of the past few days.
Metromedia Fiber
Communications
(
MFNX |
Quote |
Chart |
News |
PowerRating) was brought to the Watchlist last week when it was
finishing up its bullish flag pattern. On Monday we see a continuation move. I’m
disappointed that the volume did not pick up on the breakout day, but Monday
may be a different story.
Checkpoint
(
CHKP |
Quote |
Chart |
News |
PowerRating) is
in what I like to call a “double-whammy” formation. This takes place
when two chart patterns have the same breakout point. Much like the converging
trendlines I speak of, the “double-whammy” often creates a
doubly-strong move. In this case we see a near-term consolidation with a high
near a key resistance point. Set your alerts at 236 1/2 and 206 7/8. Traders may
want to play this as a trading range, catching moves off the highs and lows, or
they may watch for a breakout or breakdown.
Mercury Interactive
(
MERQ |
Quote |
Chart |
News |
PowerRating)
is in a first stage low-level breakout. Monday’s price action takes it above
short-term resistance. Watch for a move to the next resistance level, which may
be a product of the former support level. Mercury is still 25 points off its
highs, so it has some room to move on a short-term breakout. Conservative
traders may want to wait for a continuation.
Until this afternoon,
Check back at 2:00PM ET
for Trading the Techs PM