Groans
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”>Do you swing? Read my latest trading
lesson, “
Tenets Of Swing Trading.” As usual, your feedback
is welcome.
face=”Arial, Helvetica”>At the time this is being published,
the Globex S&P futures are trading 2.30 points higher
and the bond market is trading up 3 ticks.
face=”Arial, Helvetica”>On Wednesday, the Nasdaq opened
flatish and sold off slightly. Soon after, it began to rally
and was up almost 100 points from the lows. However, after
some sideways drifting, the selling resumed. You could
almost hear the groans as the index slid and went negative
on the day.
face=”Arial, Helvetica”>At the risk of being redundant,
3,600 (a) remains minor support, and the May lows (b)
remain the next logical target.
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face=”Arial, Helvetica”>Essentially, my recent commentary
still stands: There’s no need to be a hero trying to catch
the bottom. Continue to look for shorts, and remain
skeptical on the long side. I still believe that there is
overhead supply waiting in the wings (see
commentary).
Looking
to potential setups, Tut Systems
(
TUT |
Quote |
Chart |
News |
PowerRating), on the
From Highs List, seems to have found support in the high
70s and looks like it has the potential to make one more
stab higher.
Celestica
(
CLS |
Quote |
Chart |
News |
PowerRating), also on the
From Highs List, appears to be snapping back out of a
deep pullback.
The
St. Paul Companies
(
SPC |
Quote |
Chart |
News |
PowerRating), on the
Momentum List, has formed a tight flag in its first
pullback since breaking out from a high-level base.
On
the short side, it looks like the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) are
in trouble and poised to resume their downtrend. Notice that
stocks such as Advanced Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating) have already
put in major tops.
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Continuing
on the short side, Keithley Instruments
(
KEI |
Quote |
Chart |
News |
PowerRating), on the
Where The Action Is List, looks poised to resume its
meltdown.
Best
of luck with your trading on Thursday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!