Orderly Correction

November 21, 2001
Dave Landry

On Wednesday, the Nasdaq chopped around in a a
fairly narrow range before ending slightly lower.

The S&P also had a choppy but modest sell-off.

So what do we do?Â I
don’t want to read too much into thin pre-holiday trading. With that
said, the market continues to correct in an orderly fashion. However,
for now, continue to look to play both sides. And, as mentioned
Tuesday, if you don’t absolutely have to trade on Friday, take the day
off,
as
it will likely be thin and choppy.

Looking to potential setups, Silicon Labs (SLAB),
mentioned recently, remains set up as a Trend Pivot Pullback. See
archives for more details.

Trail ‘Em
If You Got ‘Em

I seemed to get asked a lot of questions about
trailing stops. One of the simplest and probably my favorite technique
is a two-bar low stop. Let’s look at where this stop (a) would be
placed on Boston Scientific (BSX),
a stock mentioned recently (see archives for more details).
Â Â