What a Week!
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.
Wow, what a week! The market seemed to find low on Monday and on balance, rallied the rest of the week. It was even able to shrug off the “Big Blue†blues on Friday. For the week, the Dow gained 450 points, the NASDAQ gained 85 points and the S&P gained 55 points. The S&P is now just a stones throw away from its 50 and 200 day moving averages (a). Going forward, it’s important for the S&P to climb and stay above these well watched averages.
Global Crossing [GBLX>GBLX], on the Cup and Handle and Pullbacks Lists, appears to be rallying out of its handle (a).
Donalson Lufkin and Jenrett [DLJ>DLJ], on the Above 50-DEMA-DV List and in the strong Broker/Dealer Sector [$XBD.X>$XBD.X], appears to be rallying out of a double bottom formation. Watch for follow through to the upside here or better yet, wait and analyze the nature of the first pullback to see if this new found interest in the Broker/Dealers is for real.
For you breakout players, Metricom [MCOM>MCOM], on the New 60-day Highs on Double-Volume List, appears to be breaking out of a big picture saucer and handle formation.
On the short side, Unisys [UIS>UIS], mentioned last night and on the Implosion 10 Technology List, still looks poised to resume its meltdown. Xerox [XRX>XRX], on the Pullbacks From Lows List, is a similar pattern.
Best of luck with your trading on Monday!
Dave Landry
PS – Reminder: Protective stops on every trade!