Countdown Three Days

December 27, 2000
Kevin Haggerty

After a
fast early up, both the NDX 100 and S&P 500
trended down until 2:15 p.m., and then rallied into the close with some program
help. The NDX 100
(
NDX |
Quote |
Chart |
News |
PowerRating) closed at 2405, down 1.3%, vs. Friday’s +9.5% gain,
and the S&P 500
(
SPX |
Quote |
Chart |
News |
PowerRating) finished +0.7%, while the Dow followed at +0.5%.
It was a light-volume day with total volume of 806 million, volume ratio of 60,
and advancers over decliners by 575.Â

The techs and chosen ones
gave back some of their explosive Friday gains, but not as much as one would
expect. The retail stocks also closed red. On the green side, the
“recession” stocks — such as the drugs, financials, utilities — all
closed positive, while the stocks of all seasons — the biotechs and energies —
also closed green. I thought the
semis would give back more of their Friday gain than they did, but several of
them managed another gain day.
(
ADI |
Quote |
Chart |
News |
PowerRating) closed +4.8% and
(
MU |
Quote |
Chart |
News |
PowerRating) +2.7%.Â

The first and best trades
of the day were the reversals of Friday’s highs by many of the chosen ones. I
alerted you yesterday
to have this in your morning trading plan. The best reversals came from stocks
that had advanced the most on Friday.Â

There were other reversals
of highs in the chosen ones, such as
(
SEBL |
Quote |
Chart |
News |
PowerRating) and
(
VRSN |
Quote |
Chart |
News |
PowerRating). Hopefully you
caught JNPR, QLGC and others on Friday, and got the chance on the reversals of
the highs yesterday. You can sit around all week and talk about what the market will
do, or has to do, or didn’t do, but that won’t get the job done
for you short-term. 401K decisions are not the same as trading decisions.

Make your trading plan and
react to situations as they dynamically set up. Manage your risk and the trade,
and you will be rewarded.

face=”arial, helvetica”>(March Futures)
Fair Value	size=2>Buy	size=2>Sell
17.35	Â 18.65Â	Â 16.15

Pattern
Setups

Have a good trading day.

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Countdown Three Days

BUY THE FEAR, SELL THE GREED

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