Craving Action
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.
face=”Arial, Helvetica”>Join me, fellow TradingMarkets.com
content providers, and other traders and money managers at
the Trading Markets 2000 conference at the Venetian Hotel
Resort and Casino in Las Vegas on October 13-15, 2000.
At the time this
is being published, the Globex S&P futures are trading
down 0.40 points and the bond market is trading up 1 tick.
face=”Arial, Helvetica”>On Tuesday, the Nasdaq chopped
around all day and ended up going nowhere.
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face=”Arial, Helvetica”>The recent pivot high (a) — which
also is roughly around the 50-day and 200-day moving
averages — will likely provide resistance, and the recent
pivot low (b) will likely be the nearest downside target. So
this could set up for a trading range — at least until
summer is over.
face=”Arial, Helvetica”>I still see nothing that gets me too
excited about Tech Land, especially now that the broader
market has begun to chime in with a correction of its recent
run.
face=”Arial, Helvetica”>So what do we do? The traders whom I
spoke with today (Tuesday) seemed to be craving action —
action that does not exist in this present market. So if you
haven’t got in enough golf or sailing this summer, now might
be the time. That’s what I’d be doing if I didn’t have to be
here.
face=”Arial, Helvetica”>Looking to potential setups, Quest
Diagnostics
(
DGX |
Quote |
Chart |
News |
PowerRating), mentioned recently and on the
From Highs List, still looks like it has the potential
to resume its uptrend. Just wait for follow-through to the
upside, as it did close poorly on Tuesday.
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face=”Arial, Helvetica”>Continuing on the pullback theme,
Tut Systems
(
TUTS |
Quote |
Chart |
News |
PowerRating), also on the
From Highs List, appears to be finding support near its
recent breakout levels.
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On
the short side, Melville
(
CVS |
Quote |
Chart |
News |
PowerRating), on the
From Lows List, is a four-bar pullback from lows and
closed poorly.
Web
Methods
(
WEBM |
Quote |
Chart |
News |
PowerRating), mentioned Monday night, continues to
consolidate at lower levels and looks poised to resume its
downtrend.
face=”Arial, Helvetica”>Looking Ahead
MMC
Networks
(
MMCN |
Quote |
Chart |
News |
PowerRating), on the
60-Day Highs On Double Volume List, broke to new highs
on an expansion of range. This one might be worth watching
for the next pullback.
Best
of luck with your trading on Wednesday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!