Not The End Of The World
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.
Not
a bad day in Tech Land as the Nasdaq rallied on a benign
employment report. This has it closing above the recent
trading range (a) and above the psychological 4,000 level,
but shy of the two-month highs (b). On the downside, the
market did sell off during the last hour, closing off of its
intraday high (c). However, all things considered, it still
was a decent day.
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There
was some double-digit carnage here and there (e.g., Aether
Systems
(
AETH |
Quote |
Chart |
News |
PowerRating) and Broadvision
(
BVSN |
Quote |
Chart |
News |
PowerRating)). However,
this was offset by many double-digit gains (e.g., Nuance
Communications
(
NUAN |
Quote |
Chart |
News |
PowerRating), IXYS Corp.
(
SYXI |
Quote |
Chart |
News |
PowerRating), and
Sycamore Networks
(
SCMR |
Quote |
Chart |
News |
PowerRating)).
Based
on all of the above, my guess is that we’ll probably see
some profit taking early Monday, but the momentum will
likely kick back in. Considering this, I’d be a little
cautious on the open — maybe wait for second entries later
in the day.
Looking
to potential setups, Cell Therapeutics
(
CTIC |
Quote |
Chart |
News |
PowerRating), on the
From Highs List, looks poised to resume its strong
uptrend.
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Continuing
on the pullback theme, Mrv Communications
(
MRVC |
Quote |
Chart |
News |
PowerRating), also
on the
From Highs List, has formed a high-level
“mini” double bottom and looks like it has the
potential to resume its uptrend.
For
you breakout players, Foundry Networks
(
FDRY |
Quote |
Chart |
News |
PowerRating), on the
60-Day Highs On Double Volume List, broke to new highs
on an expansion of range and volume on Friday. Just don’t
overstay your welcome here, as it will likely run into
longer-term overhead resistance (not shown).
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On
the short side, General Motors
(
GM |
Quote |
Chart |
News |
PowerRating), on the
From Lows List, looks poised to resume its strong
downtrend.
Best
of luck with your trading on Friday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!