Scroll For The Rally

  • September 27, 2000
  • Kevin Haggerty

The
Generals were probably too busy yesterday unloading
Intel
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focus on the rest of their key stocks. The semis tried to
run early on, but only Micron Technology
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survived. Texas Instruments
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which I had mentioned as a classic short, opened at 51 5/8, rallied to 52 1/2,
then caved, breaking Monday’s low of 51 and trading down to an intraday low of
47 7/8, closing at 48 1/2.


I think there is a good
chance that Intel rallies after the quarter, as some of the Generals buy back
some of their stock they blew out on the way down from 75.81. Intel is down 43% in 16
days, and is now at some interesting levels. Do the work and have some
fun by framing Intel from the 6/98 low and also the 6/99 low. You will see some
familiar levels. 


Who would have imagined at
the 75.81 high, that 16 days later, you could buy Intel and sell Nov. 45 calls
at 4 1/4 for a breakeven below 40? There are some very
interesting strategies to get involved in with Intel on a position basis. Check
the LEAPs vs. selling near-term calls.


There were three longside
plays yesterday in the
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coming on the early morning rally to 92 3/4 from a low of 8982.


There hasn’t been a
quarter-ending week that I can remember that hasn’t given you a couple of great
trading days, so be all over your five-minute charts today and scrolling those
high RS stocks for opportunity. Even if the averages finish
down on the day, there will still be some sharp daytrading rallies during this
report-card week.














face=”arial, helvetica”>(December Futures)


Fair
Value

size=2>Buy

size=2>Sell


18.90


20.10

17.70


Pattern
Setups


There aren’t many.


Take a look at
(
AMCC |
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above 199 1/4),
(
ADBE |
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(
JNPR |
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(
SUNW |
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(
PMCS |
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and
(
CMVT |
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PowerRating). 


Also look for intraday patterns in the
following stocks that will get marked up if at all possible: 



(
EMC |
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(
ORCL |
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(
ARBA |
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(
BRCM |
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(
BRCD |
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(
CIEN |
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(
NEWP |
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(
BEAS |
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(
NTAP |
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(
SEBL |
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and
(
VRSN |
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(
AIG |
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PowerRating) and
(
GE |
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PowerRating)


Have a good trading day.


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