Soylent Greenspan

June 26, 2000
Dave Baker

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.

Let’s quickly recap the stocks that made up last weeks Watchlist:

This Week’s Watchlist:

It was quite a busy week. A day like
today is ideal for preparing forÂ potential moves following tomorrow’s
meeting.Â

Analog Devices
(
ADI |
Quote |
Chart |
News |
PowerRating) looked like it
broke out from a bigger picture cup with handle roughly two weeks ago, but it
decided to consolidate near its all-time high again. Now that it has retraced to
a longer-term trendline, we’ll add it to our list and watch for a bounce. Per my
technique, I’ll be watching for resistance at 100. As for entry points,
aggressive traders may want to play the bounce of this trendline. There may be
resistance at the top of the current trading range. Note that ADI often has a
large bid/ask spread.

Vignette
(
VIGN |
Quote |
Chart |
News |
PowerRating) broke down from the pennant that was
highlighted here several weeks back. After consolidating for a while it has
entered an ascending triangle formation, with the topside of the triangle at the
apex of the pennant. Set your alerts at 48 1/2 as we watch for a breakout. Keep
an eye out for resistance at 50, as well as the next two levels mentioned
below.Â

Axent Technology
(
AXNT |
Quote |
Chart |
News |
PowerRating) broke out last week but quickly hit
former resistance. On Monday it has pulled back to an area below the breakout
level. We’ll watch for a continuation move above 25 1/2. It can never hurt to
have another background play in a somewhat stale market.

Superconductor Technology
(
SCON |
Quote |
Chart |
News |
PowerRating) is still sitting in a
trading range. We’ll continue to watch for a breakout. Because resistance from
March is not too far above the top of the trading range, you may want to
consider waiting for a move above this level before opening any positions. Of
course, swing traders can still take advantage of small 1 to 5 point moves. Set
your alerts just above and below the range.Â

Allergan
(
AGN |
Quote |
Chart |
News |
PowerRating), in the biotech group, is trying to breakout
again. Since I started writing this article the price has moved up another 2
points. Perhaps this move is for real. Allergan has shown us exactly why swing
traders will want to wait for a continuation move. It has broken out intraday
four times already, but never put in a continuation move. Should it close
outside of its trading range on Monday, set your continuation alerts roughly 1/4
point above the intraday high.

Until tomorrow,

Dave Baker

Check back tomorrow
morning at 9:15AM ET for Trading the Open.

Soylent Greenspan

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources