Let The Dust Settle

October 24, 2002
Dave Landry

On Thursday, the Nasdaq opened firmer and began to chop its
way higher. However, it found its high late in the morning and trended lower for
the rest of the day. This action has it closing poorly.

The S&P put in a similar performance. This action has it
closing back near its 50-day moving average.

So what do we do? Thursday’s action is frustrating. Just
when things are beginning to shape up, the market gets whacked. Some of the
better performing sectors such as the HMOs were hit especially hard. Further the
“improving” sectors such as biotech and the semis were also hit fairly
hard. Based on this action, I suppose the best thing to do is to continue to
keep it light–wait and see if the big blue arrow still remains valid.

No setups tonight.

And The Winner Is….

Tonight’s “no tickee, no tradee” award goes to
Biogen
(
BGEN |
Quote |
Chart |
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PowerRating), mentioned Wednesday night. On Thursday, the stock sold off
hard (a). Fortunately, it did not come close to triggering (b). Wait for
entries, especially in these volatile times.