Newt Day
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.
face=”Arial, Helvetica”>Join me, fellow TradingMarkets.com
content providers, and other traders and money managers at
the Trading Markets 2000 conference at the Venetian Hotel
Resort and Casino in Las Vegas on October 13-15, 2000.
face=”Arial, Helvetica”>At the time this is being published,
the S&P Globex futures are trading down 0.80 points and
the bond market is trading up 3 ticks.
face=”Arial, Helvetica”>On Wednesday, it started out as a
pretty ugly day in Tech Land, but like the man who was
turned into a newt,* it got better. The Nasdaq lapped open
and sold off hard. Then, just when my phone started ringing
from the doom-and-gloom crowd, the Nasdaq reversed and
rallied to close well. Of course, it still ended down on the
day, but it was a definite improvement from earlier levels.
width=”470″ height=”320″>
face=”Arial, Helvetica”>Wednesday’s reversal was great for a
daytrade, but doesn’t really get me too excited for position
(swing) trades, especially in light of the poor performance
of the Dow and S&P. (Forget about index rebalancing;
they were down, period.) So once again, I’d remain cautious
until we can get a decent rally out of this consolidation.
Looking
to potential setups, Power One
(
PWER |
Quote |
Chart |
News |
PowerRating), mentioned
Tuesday night and on the
From Highs List, still looks like it has the potential
to resume its strong uptrend.
width=”470″ height=”320″>
Interwoven
(
IWOV |
Quote |
Chart |
News |
PowerRating), mentioned over the past few nights and also on
the
From Highs List, still looks like it has the potential
to resume its uptrend. Just wait for follow-through to the
upside before attempting an entry.
Manugistics
(
MANU |
Quote |
Chart |
News |
PowerRating), mentioned Tuesday night, still looks
interesting to me.
On
the short side, Chevron
(
CHV |
Quote |
Chart |
News |
PowerRating), on the
Implosion List, looks poised to resume its downtrend.
Best
of luck with your trading on Thursday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
*First person
(sorry, not every person) to name the movie I stole this
from gets a free T-shirt.