Resumption
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”>Do you swing? Read my latest trading
lesson, ”
Tenets Of Swing Trading.” As usual, your feedback
is welcome.
face=”Arial, Helvetica”>At the time this is being published,
the Globex S&P futures are trading 0.70 points lower and
the bond market is trading up 4 ticks.
face=”Arial, Helvetica”>On Tuesday, the Nasdaq opened flat
and then chopped around for most of the day. Going into the
close, it sold off and closed poorly.
face=”Arial, Helvetica”>3,600 (a) remains the minor support
level, and the May lows (b) remain the next logical target
after that.
width=”470″ height=”320″>
face=”Arial, Helvetica”>So here we are again, back in
sell-off mode. Therefore, once again, there’s no need to be
a hero who tries to catch the bottom. Continue to look for
shorts, and continue to be skeptical on the long side. I
still believe there is overhead supply waiting in the wings
(see
commentary).
Looking
to potential setups, Lehman Brothers
(
LEH |
Quote |
Chart |
News |
PowerRating), mentioned
Monday, still looks interesting to me. Just wait for
follow-through to the upside, as it closed off its high.
width=”470″ height=”320″>
Netegrity
(
NETE |
Quote |
Chart |
News |
PowerRating), on the
From Highs List, seems to have found support near its
50-day exponential moving average, and looks like it has the
potential to make one more stab higher.
For
you breakout players, Biomet
(
BMET |
Quote |
Chart |
News |
PowerRating), on the
60-Day Highs On Double Volume and
Momentum lists, broke to new highs out of a high-level
consolidation on an expansion of range and volume.
On
the short side, Insight Enterprises
(
NSIT |
Quote |
Chart |
News |
PowerRating), on the
Implosion List, formed a bearish outside day down (poor
close) and appears to be resuming its downtrend.
Also
on the short side, LSI Logic
(
LSI |
Quote |
Chart |
News |
PowerRating) and National
Semiconductor
(
NSM |
Quote |
Chart |
News |
PowerRating), mentioned Monday night and in the
weak semis sector
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), still look vulnerable.
Best
of luck with your trading on Wednesday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!