More On How To Handle An Event-Driven Environment

April 1, 2003
Dave Landry

On Tuesday, the Nasdaq chopped back and forth. It was able
to close in the plus column though. This action puts it back above its 50-day and
200-day moving averages.

The S&P was more orderly. It generally worked its way
higher for much of the day. This action has it closing well.

So what do we do? The fact that the S&P rallied after
just hitting the 50% retracement and 50-day moving average is constructive. However,
looking to charts, I’m finding it virtually impossible to find any meaningful
setups. As I’ve learned, when this occurs, you’re usually better off sitting on
the sidelines.

To make matters worse, Tuesday night promises to be event
filled. So far, there is news of potential SARS in the U.S. and more
importantly, a pending Cent-com announcement
(only). Obviously, the markets will be held hostage by these events.

No setups tonight.

Smoke ’em If You Got ’em

Teva Phamaceuticals
(
TEVA |
Quote |
Chart |
News |
PowerRating), mentioned Monday night,
rallied fairly sharply on Tuesday. This action puts it near its old highs (a).
Although this is shy of 2-full points (which I generally view as a
minimal goal on stocks $40 or higher), in this environment, you probably
shouldn’t look a gift horse in the mouth (i.e., take partial profits).