Follow-Through Friday?
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.
face=”Arial, Helvetica”>Want a sneak peek at one of my
favorite, never-before-published patterns?
here!
At the time this
is being published, the Globex S&P futures are trading
up 2 points and the bond market is trading up 1 tick.
face=”Arial, Helvetica”>A decent day (Thursday) in the
Nasdaq, as it rallied for a solid trend day — the first in
a long time. This puts it marginally above its 50-day and
200-day moving averages and just at its recent swing high
(a).
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face=”Arial, Helvetica”>The Nasdaq 100, fueled by
heavyweights such as Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating), fared
even better. It’s now nicely above the averages and the
recent swing high. My only concern here is the potential for
a head-and-shoulders (or a triple top) to form.
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like the momentum may push through on Friday. Just be
careful (on either side), as the volume will likely erode as
the day wears on.
face=”Arial, Helvetica”>One last point: For those who don’t
read my
Market Outlook, the VIX is at its lowest levels of the
year. This doesn’t mean the market will reverse
(immediately); it just means that the market has the potential
to reverse.
face=”Arial, Helvetica”>Looking to potential setups, Quest
Diagnostics
(
DGX |
Quote |
Chart |
News |
PowerRating), mentioned forever, still looks like
it has the potential to resume its uptrend. When will
it go? The day after I stop talking about it!
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face=”Arial, Helvetica”>Donaldson, Lufkin & Jenrette
(
DLJ |
Quote |
Chart |
News |
PowerRating),
mentioned Wednesday night and on the
From Highs List, had a nice reversal on Thursday and
appears to be resuming its uptrend.
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Biovail
Corp.
(
BVF |
Quote |
Chart |
News |
PowerRating), also on the
From Highs List, looks poised to rally out of a running
cup-with-handle formation.
On
the short side, Worldcom
(
WCOM |
Quote |
Chart |
News |
PowerRating) and Level 3
Communications
(
LVLT |
Quote |
Chart |
News |
PowerRating), mentioned Wednesday night, still
look vulnerable.
Allegiance
Telecom
(
ALGX |
Quote |
Chart |
News |
PowerRating), on the
Implosion List, has formed a bearish outside day down in
a pullback.
Best
of luck with your trading on Friday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
P.P.S. Due to a
scheduling conflict, I won’t be writing my commentaries
Friday night. If you happen to be in Ontario, California,
look for me at the Online Trading Expo over the weekend.