Crosscurrents
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”>For those of you planning to attend
the TradingMarkets2000 First Annual Traders Conference at
the Venetian Resort, Hotel & Casino in Las Vegas on
October 13-15, I’ll be speaking on Saturday afternoon
following Jay Leno. I’ll also be at the cocktail party
Friday night. Sign up soon, as space is limited.
href=”https://tradingmarkets.com.site/stocks/education/patterns/08092000-7762.cfm”>color=”#0000FF” size=”2″>Click herecolor=”#0000FF” size=”2″> to check out “Bow Ties,”
my latest trading lesson.
face=”Arial, Helvetica”>At the time this is being published,
the Globex S&P futures are trading down 0.30 points and
the bond market is trading up 3 ticks.
face=”Arial, Helvetica”>On Wednesday, the Nasdaq lapped
lower (a) and began to sell off. However, it found its low
within the first 45 minutes and began to rally. Then, after
some lunchtime drifting, the rally resumed.
face=”Arial, Helvetica”>The index managed to close exactly
on its high but failed to take out Tuesday’s high (b). This
level (4,011) will likely provide minor resistance on
Thursday.
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face=”Arial, Helvetica”>I’m somewhat confused. The
persistent low VIX reading (see href=”https://tradingmarkets.com.site/stocks/commentary/dlstoutlook/08212000-8032.cfm”>Tuesday’s
commentary) suggests that the market remains vulnerable.
On the other hand, the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) continue to
rally, with Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) making new highs. Tech
(
$MSH.X |
Quote |
Chart |
News |
PowerRating) in general is beginning to shape up, with
Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating) at new highs. And even market
bellwether General Electric
(
GE |
Quote |
Chart |
News |
PowerRating) is now at new highs.
face=”Arial, Helvetica”>I suppose the best thing to do in
face of such crosscurrents is to remain cautious and
continue to play both sides until the situation resolves
itself.
face=”Arial, Helvetica”>Looking to potential setups,
CacheFlow
(
CFLO |
Quote |
Chart |
News |
PowerRating), on the href=”https://tradingmarkets.com.site/stocks/indicators/up/pull.cfm”>Pullbacks
Off Highs List, is in its first pullback since rallying
out of a cup formation.
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face=”Arial, Helvetica”>Extreme Networks
(
EXTR |
Quote |
Chart |
News |
PowerRating), also
on the href=”https://tradingmarkets.com.site/stocks/indicators/up/pull.cfm”>Pullbacks
Off Highs List, closed well and looks poised to resume
its strong uptrend.
width=”470″ height=”320″>
face=”Arial, Helvetica”>GreenPoint Financial
(
GPT |
Quote |
Chart |
News |
PowerRating),
mentioned href=”https://tradingmarkets.com.site/stocks/commentary/dlstoutlook/08212000-8032.cfm”>Tuesday
night, still looks interesting to me.
face=”Arial, Helvetica”>On the short side, Affymetrix
(
AFFX |
Quote |
Chart |
News |
PowerRating),
on the href=”https://tradingmarkets.com.site/stocks/indicators/down/pbsl.cfm”>Pullbacks
From Lows List, appears to have stalled out at recent
resistance. Just wait for follow-through to the downside
here, as it did end up on the day.
Best
of luck with your trading on Thursday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!