Hasta La Vista, Correccion?

May 4, 2001
Dave Landry

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.

Dave Landry is enjoying a well-deserved
vacation in beautiful Cancun, Mexico. He will return on Wednesday, May 9. In his
absence this column will be written by TradersWire’s Director of News Duke
Heberlein.

On Friday, the Nasdaq gapped lower, found low in the first 10
minutes of trading, then rallied more than 80 points into the close for a solid
trend day. This forms a bullish outside day in the Naz’s recent pullback/ handle
of a mini cup and handle. Both the Dow and the S&P have traced out the same
pattern.

It has been said by people smarter than I that a strongly
trending market rarely pauses for more than 1-3 days, so I feel no need to fight
what is often a bullish pattern in the indices and will focus on the long side.
However, as always, I will keep a couple of shorts in the bullpen in case the
game does not play out the way it looks it should.

Looking ahead to some setups for Monday’s trading, GTech
Holdings
(
GTK |
Quote |
Chart |
News |
PowerRating) has formed a Boomer/flag pattern.