Going Once. . .Going Twice. . .Going Higher
Some of the old Net stocks continue to form
promising-looking bases. Two days ago on August 15, 2000, I talked about how the
Internet HOLDRs has been forming a base for the past three months following the
the March/April shakeout. I stated that this base building looked a lot like
what we saw in many biotech stocks over the course of April, May, and June prior
to their explosive breakout.
Continuing with this theme, let’s take a look at eBay
(
EBAY |
Quote |
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PowerRating).
Ebay is hitting the top of its seven-week base on good volume.
With a little help from market dynamics, the outcome of this could be a
breakout. But don’t be surprised if it doesn’t happen. Ebay looks like it could
use some more time in hibernation coupled with accumulation patterns.
Waiting is often the hardest part of trading, but it’s usually
the one smart discipline that many traders have trouble executing.
That said, I think intermediate-term players will need to sit
this one out if a breakout doesn’t materialize today in eBay.
See you tomorrow,
Eddie