‘Speculators, Your Table Is Ready’

• June 16, 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.

---

In Trading the Techs PM at 2:00PM ET, I will go over an example from Thursday
of a intraday pattern that I have have used time and time again in my daytrades. 

Today’s Watchlist: 
(
ECIL |
Quote |
Chart |
News |
PowerRating),
(
VISX |
Quote |
Chart |
News |
PowerRating),
(
OAKT |
Quote |
Chart |
News |
PowerRating),
(
ADCT |
Quote |
Chart |
News |
PowerRating),
(
MRVC |
Quote |
Chart |
News |
PowerRating)

ECI Telecom
(
ECIL |
Quote |
Chart |
News |
PowerRating)
is consolidating for a third day near a low-level breakout point. Watch for a
move above 34 1/4 to take ECI to the next resistance level. With a low-level
setup like this one, it’s important to analyze the average daily range of the
stock. Looking at ECI, we see that the range is not that wide, thus we will
target a smaller move in the case of a breakout. Should you open a long
position, watch each whole number move carefully, as you may see a pause
there. 

VISX
(
VISX |
Quote |
Chart |
News |
PowerRating), from our long-term consolidation list, broke
out two days ago and put in a first continuation move on Thursday. It’s good to
see strong volume along with the breakout move. Look for another leg higher on
Friday and over the course of the next week. Watch for a break of Thursday’s intraday
high.

Oak Technology
(
OAKT |
Quote |
Chart |
News |
PowerRating) is setting up for a W-bottom as it
consolidates nears a key resistance level. The recent uptrend may soon converge
with the longer-term resistance level. Remember that converging trendlines often
lead to significant moves. Watch for a move resistance followed by a
continuation. The gap above the 50-day MA several weeks ago provided enough of a
booster to continually push the stock higher. In the case of a breakout, you’ll
want to watch for a higher-than-average volume day. Set your alerts just over
20.

ADC Telecom
(
ADCT |
Quote |
Chart |
News |
PowerRating) was brought back to our Watchlist last
week after putting in a three-day pullback from highs. On Thursday we saw a
continuation move above the high of the pullback. Look for another continuation
above Thursday’s high as ADC keeps setting new all-time highs. Because of the
pending merger, keep an eye out for news on both ADC and Pairgain
(
PAIR |
Quote |
Chart |
News |
PowerRating).
You can always find a list of the latest headlines by simply entering a ticker
symbol in the quote box on the Tradingmarkets.com site.

Because I’m primarily a short-term and daytrader, I find it
necessary to constantly re-evaluate both positions I’m in and that I’m watching
for breakouts. MRV Communications
(
MRVC |
Quote |
Chart |
News |
PowerRating) provides a great example. Before
and after each move, it’s important to draw trendlines that show upcoming
resistance levels. Since MRV was able to move above its April high, we will now
watch for a continuation to the next level and add a marker which designates up
coming resistance. Watch for resistance at 57, 60, and 70.

 

Until later,

Dave Baker

Check back at 2:00 PM ET
for Trading the Techs PM.