Sellers Succeed
It looks like people are
just selling into any rally. I like to call this “a bad sign.” When we
see selling on good news, you know that there’s a problem. Swing traders need to
be very careful in this market, both breakouts and breakdowns are failing. The
markets are just choppy. Until we see a steady trend, stick with tight stops and
a focus on very short-term trades, including daytrades. In this type of market, greed is your enemy. Â
Tomorrow, we’ll revisit
Monday’s article, where I wanted us to keep separate records of our trades from
the first hour. Have your lists ready tomorrow so that we can compare your
trades which were initiated in the first hour to your trades from the other 5
1/2 hours of the trading session.
Kevin Haggerty made a
great point this morning when he noted that there simply aren’t that many great
setups out there, so daytraders will want to continue to focus on intraday
patterns.
Today’s Watchlist:Â Â
(
AZA |
Quote |
Chart |
News |
PowerRating),
(
WCOM |
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Chart |
News |
PowerRating),
(
PRTL |
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Chart |
News |
PowerRating)
Alza
(
AZA |
Quote |
Chart |
News |
PowerRating) is hitting
its 50-day MA on Thursday. This MA is backed by a secondary support level as
well. Traders who like to play pullbacks might want to watch this one. Set your
alerts just over Wednesday’s close. Thursday’s volume is light once again. If
the stock tanks, it could be a sign that the highs from June and July formed a
double top, but we won’t know until it makes a move. The pullback we are seeing
here is the third consecutive lower low.
Worldcom
(
WCOM |
Quote |
Chart |
News |
PowerRating) broke
down below support on average volume on Wednesday. On Thursday we got our first
continuation move on stronger-than-average intraday volume. Surprisingly, volume
in the markets is quite high for this time of year. If you missed the
continuation move, don’t worry. With the market acting weak, there may be more
opportunities. If you are going to trade Worldcom, make sure to check the new
headlines, as there is talk out there of changes in management. Look for another
leg lower in a weak market on Friday. Should the stock reverse, watch for former
support to become resistance.
Primus Telecomm
(
PRTL |
Quote |
Chart |
News |
PowerRating)
broke down below its support level as well. Watch for another continuation move
tomorrow to take out Thursday’s intraday low. Watch for support to kick in near
10, and at each whole number. The volume on Thursday is very strong, perhaps
signaling that there is more to come.
Until tomorrow,
Â