Fake-Out
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”>Kevin Haggerty’s seminar is now sold
out. For those who are still interested, the seminar will be
taped (approximately 14 hours). This, along with a 200-page
manual, will be available in mid-July 2000. Those who order
by August 1 will be offered a $100 discount. Call
1-888-543-8003 to order, or
here for more information.
At the time this
is being published, the Globex S&P futures are trading
up 3 points and the bond market is trading down 2 ticks.
face=”Arial, Helvetica”>Check out my latest trading
lesson,
Structure With Volatility. The techniques you’ll
find here are some of the most powerful I’ve ever published.
Be warned, though, that if you’re new to trading, it’ll take
a little background work before you can run out and apply
the concepts. But it will be well worth the effort.
On
Tuesday, the Nasdaq gapped lower (a) and sold off to test
the bottom of its trading range. Just when it looked like
the bottom was going to fall out, the index reversed and
rallied to close well (b).
The
bulk of the rally came late in the afternoon, which suggests
that traders were willing to chase stocks into the close and
hold overnight.
width=”470″ height=”320″>
Is
all well and good? Who knows? But for now (and this could
change tomorrow!), the fake-out below and the rally back to
near the top of the recent trading range suggests that the
Nasdaq has the potential to break out and resume its rally
from the May lows.
Looking
to potential setups, Aurora Biosciences
(
ABSC |
Quote |
Chart |
News |
PowerRating),
mentioned Monday night and on the
Momentum List, still looks poised to rally out of a
pennant.
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Superconductor
Technologies
(
SCON |
Quote |
Chart |
News |
PowerRating), on the
Where The Action Is List, is in its first pullback since
its fast move higher off of its extended low-level base.
E.Piphany
(
EPNY |
Quote |
Chart |
News |
PowerRating), on the same list, rallied sharply on
Tuesday, reversing Monday’s sell-off. This suggests that its
uptrend from its May lows remains intact.
On
the short side, Mead Corp.
(
MEA |
Quote |
Chart |
News |
PowerRating), mentioned Monday
night, sold off in spite of Tuesday’s rally and looks poised
to challenge its old lows.
Best of luck with
your trading on Wednesday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!