Not Much To Look At

  • July 3, 2001
  • Greg Che

As a trader,
it is important to always stick
to your
entry and exit rules. Like Dave Landry says, “No tickee, no
tradee.” This is true for any trader,
whether they are daytrading, swing trading or intermediate-term
trading. It could be very costly to a trader and their account if they
decide to front-run an entry. 

Trading requires tradable
setups. However, today not much on my screen was setting up.

BMET,
which was moving up a multi-week channel,
today violated the lower channel line.

Arena Pharmaceuticals (ARNA)
is scaling up the right side of its base. The company has developed a
technology called Constitutively Activated Receptor Technology (CART)
which is used to aid in the development of new drugs.

AdvancePCS (ADVP)
is basing and should continue to be monitored.

The Broadband Holdrs (BDH)
led the electronically traded funds higher in trading. The fund closed
higher 2.9%.

The WEBS-Mexico Benchmark (EWW)
edged higher by 1.4%. What is ironic is I was speaking to my accountant
who happens to own some land in Mexico. I was expressing my views that
it appears the economy is getting stronger in the country. His
sentiment was exactly the same. The fund broke out of its trading
range on good volume.

The WEBS-Australia Benchmark
(EWA)
closed higher 1.2%.

Some ETFs ending in the red
were the Internet Infrastructure Holdrs (IIH)
which lost 3.4%, as did the Ishares DJ US Internet Trust (IYV)
which closed lower by 3.4% as well.

The Software Holdrs Trust (SWH)
slid 2.6% as the stocks within the sector came out with a number of
earnings warnings.

Remember that all securities
are risky. In any new trade, reduce your risk by adjusting position
size and placing open protective stops where you will sell your
new buy or cover your short in case the market turns against you. For
an introduction to combining price stops with position sizing, see
Loren’s lesson, Risky Business.

Have a great July Fourth! 
See you on Thursday.

Greg

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