Nothing Doin’
Boring and choppy. Those are the only two words that I need to describe this
market. For me, the key to a choppy market is to be more aggressive when closing
my positions. At the same time, I am less aggressive in opening my positions. It
is important to adjust your strategy to current market conditions. When the
market lacks direction like this, it is crucial to be aware that we may see a
significant move in either direction at any time.
Today’s Watchlist:Â Â
(
GTW |
Quote |
Chart |
News |
PowerRating),
(
AGIL |
Quote |
Chart |
News |
PowerRating),
(
MXIM |
Quote |
Chart |
News |
PowerRating),
(
SCMR |
Quote |
Chart |
News |
PowerRating)
The green line on the charts is the 200-day MA and the blue line is the
50-day MA.
Gateway Computers
(
GTW |
Quote |
Chart |
News |
PowerRating) broke out from a near-term resistance level not
all that far from its highs. The move on Thursday was on very light volume,
perhaps explaining why the move on Friday was not a strong continuation. Look
for GTW to trend with the market. There may be a move after the meeting on
Tuesday.
Agile Software
(
AGIL |
Quote |
Chart |
News |
PowerRating) is moving on some fundamental news on Friday.
Unfortunately, the news was not enough to push it over resistance. Setups like
these should be played with the market. That is to say, if it breaks out above
resistance and the market heads north, go with that. At the same time, if the
market is weak, it may provide a short opportunity on a failed move.
Maxim Integrated Circuits
(
MXIM |
Quote |
Chart |
News |
PowerRating) cleared its resistance level on Wednesday
and has put in two somewhat weak continuation days. This dwindling volume is
never reassuring when you are shopping for continuations. Watch for a potential
retracement to the breakout level. Should this situation pan out, watch for a
bounce at that level to result in a move to a new high.
The last stock that we’ll check this week is Sycamore Networks
(
SCMR |
Quote |
Chart |
News |
PowerRating), which broke out on Thursday and gapped higher on Friday. The action on Friday is
showing a new high followed by a strong pullback. Look for SCMR to close above
the intraday high from Thursday. The volume has been reasonable, but not
spectacular. If it closes strong today, look for another move high above
Friday’s intraday high. Should it retrace, it may find support at the breakout
level.
Until Monday,Â
I will see you at the
International Online Trading Expo this weekend in Ontario.