Correct Or Continue?

  • November 14, 2001
  • Dave Landry

 

On Wednesday, the Nasdaq gapped higher on the open and
reversed. Then, late in the day, it recovered to recoup most of its losses.

 

The S&P put in a similar performance.

 

So what do we do? Once again,
we remain overbought. Combine this with Wednesday’s mixed performance and it
suggests that we are once again vulnerable to a correction. Therefore, look to
play both sides.

Looking to potential setups, Tektronix (TEK)
looks like it has the potential to rally out of a low-level cup and handle.

 

 

On the short side, Express Scripts (ESRX)
looks like it has the potential to resume its downtrend out of a pullback from
lows.

 

Walk Through Continued

For educational purposes, lately, we have been doing a walk
through on Networks Associates (NETA).
If you haven’t already done so, you might want to read the recent archives
before proceeding. When we last left off, we had moved the stop to break-even on
Network Associates (NETA)
after taking half our profits. We will leave the stop at this level (a) and
trail the stop at a two bar low. For more on money and position management, see
my articles under Traders
Lessons. 

 

Q&A

Dave—