Consulting With My Team

  • November 30, 2000
  • Dave Landry

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
market’s opening. Therefore, overnight events may alter the
outcome of these observations.

On Thursday, the Nasdaq gapped lower on the Gateway news and
after an early morning bounce, resumed its slide to new lows (a). Then, late in the
day, it mounted a 100-point comeback. However, it wasn’t able to hold all of
these gains and ended up pretty much where it started (b).

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Once again, the late-day bounce had many calling for a bottom.
I suppose if you want to be a hero, forecast early and often!

Me? I dunno. I had my team of 6-year olds look at the Nasdaq for me. Given the choice between up and down, none said up.

This “secret weapon” has kept me out of a lot as of late.

So what do we
do?  I don’t see any reason to get too excited in here, especially in front
of what could be a news-filled weekend. Stick with the defensive issues but keep
in mind that there was some selling here late in the day too. And, of course,
consider a short or two.

Laboratory Corp.
(
LH |
Quote |
Chart |
News |
PowerRating)
mentioned Wednesday night, appears to be resuming its uptrend.

Clorox
(
CLX |
Quote |
Chart |
News |
PowerRating),
mentioned recently and on the Pullbacks
Off Highs List, still looks like it has the potential to rally out of a
pullback.

On the short side,
Providian Corp.
(
PVN |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Lows List, appears to have stalled out in its retrace rally from
lows.

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Best
of luck with your trading on Friday! 

face=”Arial, Helvetica”>Dave Landry

P.S. Reminder:
Protective stops on every trade!

P.P.S. For a change, tonight I think I’m going to be shameless and plug my upcoming book
on swing
trading at a 20% discount. 

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