Hopeful, But Not Convinced

  • June 1, 2001
  • Dave Landry

Dave Landry is away from the office today.
Tonight’s column is written by TradersWire’s Duke Heberlein.

 

On Friday, the Nasdaq gapped higher on the open, then slid to its low at
10:30 AM Eastern. Then, when things looked their worst, rallied for more than 40
points and closed in the top portion of its range.

 

 

So what do we do? While the second higher high and higher low
are encouraging, I am not totally convinced that everything is peaches and cream
just yet. I am hopeful, but I am not going to rule out another probe below the
recent level of support. Keep nibbling on the long side, but don’t overstay your
welcome and like always, have a back up plan if things get ugly.

Looking ahead to possible setups, ICN Pharmaceuticals
(
ICN |
Quote |
Chart |
News |
PowerRating),
off the Proprietary
Momentum List is an expansion breakout.

 

 

Professional Detailing
(
PDII |
Quote |
Chart |
News |
PowerRating), from the Pullbacks
From Highs List, appears poised to resume its uptrend. InterMune
(
ITMN |
Quote |
Chart |
News |
PowerRating),
off the same list, is touching the top of a narrow flag pattern.

 

 

For you breakout players, Stewart and Stevenson
(
SSSS |
Quote |
Chart |
News |
PowerRating), off
the New
60-day Highs On Double Volume List, looks like an expansion
breakout/runaway.

 

 

On the short side, Adolph Coors
(
RKY |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
From Lows List, looks like it is ready to resume its meltdown.

 

 

Finally, EMC Corp.
(
EMC |
Quote |
Chart |
News |
PowerRating), on the Implosion
10 Technology List, is tracing out a small pennant pattern, and could retest
the April low.

 

 

Have a great weekend everyone, and best of luck with your
trading on Monday!

P.S. Protective stops on every trade!