Tonight’s Set-ups
Each evening we focus on the most interesting aspects for the upcoming trading day. The comments are based on observations of the nightly updates of the Stocks/Sectors and Market Bias pages. They are provided for educational purposes only and are not intended to be direct trading advice. Also, keep in mind that these remarks are made up to 12 hours in advance of the markets opening. Therefore, overnight events may alter the outcome of these observations.
At the time this is being published, the S&P Globex Futures are trading 6.00 points higher and the Bond Market Futures are trading up 2 ticks.
Emulex [EMLX>EMLX], on the Pullbacks List, has formed a mini triangle after a fast move. Watch for potential continuation to the upside. VoiceStream Wireless [VSTR>VSTR], also on the Pullback List, closed well and looks poised to resume its strong uptrend.
Nokia [NOK>NOK], on the New 60-day Highs On Double Volume List, looks like an interesting breakout candidate to me. The stock formed a big picture cup and handle, broke out, formed a flag, then today broke out of the flag. If you’re not a breakout player, wait for the next pullback before attempting an enty.
Continuing on the breakout theme, Macromedia [MACR>MACR], on the New 60-day Highs, broke out of a “mini†pennant today.
On the short side (I know, after today all is good in the world and we should not have to short stocks ever again…but just in case), IBM [IBM>IBM], mentioned last night, still looks poised to challenge its old lows (around 89). Eaton [ETN>ETN], on the Pullbacks From Lows List, closed poorly in spite of today’s rally and looks poised to resume its downtrend. And finally, Biochem Pharmaceuticals [BCHE>BCHE], on the Implosion 10 Technology List, appears to be breaking down out of an inverted cup and handle formation.
Best of luck with your trading on Friday!
Dave Landry
PS – Reminder: Protective stops on every trade!