Going Nowhere Fast

November 15, 2001
Dave Landry

On Thursday, the Nasdaq chopped lower, then chopped higher
and finally finished right about where it started.

The S&P chopped around and ended up going nowhere too.

So what do we do? We still remain overbought.
Combine this with Thursday’s mixed performance and it
suggests that the potential still exists for a correction. Therefore, continue
to look to
play both sides.

Looking to potential setups, Boston Scientific
(
BSX |
Quote |
Chart |
News |
PowerRating),
mentioned recently, appears to be resuming its uptrend.

On the short side,Â Cima Labs
(
CIMA |
Quote |
Chart |
News |
PowerRating), found by my
friend and colleague Greg Che, looks poised to continue its meltdown out of a
pullback from lows.

Walk Through Continued

For educational purposes, lately, we have been doing a walk
through on Networks Associates
(
NETA |
Quote |
Chart |
News |
PowerRating). If you haven’t already done so, you
might want to read the recent archives before proceeding. When we last left off,
our stop was near the breakeven level. We will now trail it at a two-bar low.
Below I have updated the chart. For
more on money and position management, see my articles under Traders
Lessons.Â