Not To Be Ignored

• August 25, 2000
• Dave Landry

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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.

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href=”https://tradingmarkets.com.site/stocks/education/patterns/08092000-7762.cfm”>color=”#0000FF” size=”2″>Click herecolor=”#0000FF” size=”2″> to check out “Bow Ties,”
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face=”Arial, Helvetica”>Other than some gyrations from the href=”https://tradingmarkets.com.site/stocks/quotes/goto~www.bigcharts.com~custom~tradingmarkets-com~quote-chart-news.asp?symb=emlx”>phony
Emulex
(
EMLX |
Quote |
Chart |
News |
PowerRating) news, it was pretty much a choppy,
non-event day on the Nasdaq.

face=”Arial, Helvetica”>I suppose the fact that it stalled
out has some meaning, but this can be expected for a Friday
late in summer.

face=”Arial, Helvetica”>src=”https://tradingmarkets.com/media/images/Landry/otc082500.gif”
width=”470″ height=”320″>

face=”Arial, Helvetica”>What is of interest is that, once
again, the VIX hit 13-month lows. At the risk of preaching,
this should not be totally ignored. Continue to honor your
stops and consider some candidates on the short side.

src=”https://tradingmarkets.com/media/images/Landry/vix082500.gif”
width=”470″ height=”320″>

face=”Arial, Helvetica”>Keep an eye on the S&P, too.
It’s  just shy of the July highs (a). If it fails to
break through convincingly, this could form a double top.

face=”Arial, Helvetica”>We’ll know soon.

src=”https://tradingmarkets.com/media/images/Landry/spx082500.gif”
width=”470″ height=”320″>

face=”Arial, Helvetica”>Looking to potential setups, SCI
Systems
(
SCI |
Quote |
Chart |
News |
PowerRating), mentioned recently, still looks like it
has the potential to resume its uptrend — especially if it
can take out Thursday’s pivot high.

face=”Arial, Helvetica”>src=”https://tradingmarkets.com/media/images/Landry/sci082500.gif”
width=”470″ height=”320″>

face=”Arial, Helvetica”>SPX Corp.
(
SPW |
Quote |
Chart |
News |
PowerRating), mentioned href=”https://tradingmarkets.com.site/stocks/commentary/dlstoutlook/08232000-8091.cfm”>last
night, is now in the do-or-die position. If it can rally
past Friday’s high, then its strong uptrend will likely
continue. Otherwise, avoid this stock.

face=”Arial, Helvetica”>Noble Drilling
(
NE |
Quote |
Chart |
News |
PowerRating), in the
strong oil service sector
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), is a Trend
Knockout (TKO).

face=”Arial, Helvetica”>As you know, surprises usually
happen in the direction of the trend. With that said,
Goldman Sachs
(
GS |
Quote |
Chart |
News |
PowerRating), on the href=”https://tradingmarkets.com.site/stocks/indicators/other/expl.cfm”>Explosion
List, is a stock in a strong uptrend that is also a
low-volatility situation. Watch for the possibility of a
larger-than-normal move higher as volatility reverts to its
mean.

face=”Arial, Helvetica”>On the short side, Internet Security
Systems
(
ISSX |
Quote |
Chart |
News |
PowerRating) appears to be stalling out at around 75
and looks poised to resume its strong downtrend.

Best
of luck with your trading on Monday!

face=”Arial, Helvetica”>Dave Landry

P.S. Reminder:
Protective stops on every trade!