I See Nothing
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.
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is welcome.
face=”Arial, Helvetica”>At the time this is being published,
the Globex S&P futures are trading 1.10 points higher
and the bond market is unchanged.
face=”Arial, Helvetica”>On Tuesday, the Nasdaq opened
slightly lower and mounted a rally to around its
well-watched 50-day and 200-day moving averages (a).
However, the market stalled out and ended up essentially
where it started.
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face=”Arial, Helvetica”>It looks like the upside cap for now
is about 100 points higher, at around the 4,000 level. If we
get there and stabilize, things could start shaping up.
However, so far, I see nothing that tells me we aren’t going
back to the old lows.
face=”Arial, Helvetica”>After the bell, Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating)
reported better-than-expected earnings. It, along with some
of its big-cap sexy sisters, is rallying in after-hours
trading. This action will likely pop up the Nasdaq,
especially the Nasdaq 100, on Wednesday’s open. Watch to see
if the market can follow through from this. If not, this may
provide a nice shorting opportunity.
face=”Arial, Helvetica”>Looking to potential setups, Dura
Pharmaceuticals
(
DURA |
Quote |
Chart |
News |
PowerRating), on the
From Highs List, sold off earlier on Tuesday (a) but
reversed to close well. This suggests that its uptrend
remains intact.
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For
you breakout players, Biomet
(
BMET |
Quote |
Chart |
News |
PowerRating), mentioned
recently, closed at an all-time closing high on
Tuesday and looks poised to break higher.
Once
again, the continued pullback from lows in the Nasdaq has
set up some decent shorts. Just let them get good and open
before attempting entries, as we could see a pop-up on
Wednesday morning.
With
that said, Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating), on the
From Lows List and in the weak semiconductor sector
(
$SOX.X |
Quote |
Chart |
News |
PowerRating),
is a three-bar pullback from lows that looks poised to make
another stair step lower. Just use caution, as earnings
reports are due here. Teradyne
(
TER |
Quote |
Chart |
News |
PowerRating), on the same list,
is a somewhat similar pattern.
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Dell
Computer
(
DELL |
Quote |
Chart |
News |
PowerRating), also on the
From Lows List, looks poised to resume its downtrend,
especially with the market’s newfound interest in Compaq
(
CPQ |
Quote |
Chart |
News |
PowerRating).
Allegiance
Telecom
(
ALGX |
Quote |
Chart |
News |
PowerRating), mentioned Monday night, appears to be
resuming its downtrend.
BTW,
by now I’m sure you’ve noticed that Barr Labs
(
BRL |
Quote |
Chart |
News |
PowerRating), a
long I picked Monday night, got creamed on Tuesday. The good
new is, it never traded above Monday’s high (a). This is a
great example of why I always preach follow-through.
As you can see, this simple concept can often keep you out
of trouble.
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Best
of luck with your trading on Wednesday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!