Should Anyone Be Trading Right Now?

  • August 28, 2003
  • Tim Truebenbach


The major averages just can’t be held back…and
volume, well the Nasdaq volume almost came in at average!

 image src=”https://tradingmarkets.com/media/2003/Tim/tt082803-02.gif” />

Nobody is home right now at
the institutional trading desks around the Street. I’m the only one working
as I passed on a morning mountain-biking ride with a friend who is on
vacation from his trading station at the helm of a billion-dollar money
manager.

There are not a whole lot
of reduced-risk trades to take as stocks break out.  Most of the action is
coming as stocks just continue to ramp higher as speculators take advantage
of the illiquidity. Take a look at University of
Phoenix
(
UOPX |
Quote |
Chart |
News |
PowerRating), Inamed
(
IMDC |
Quote |
Chart |
News |
PowerRating)
and Genprobe
(
GPRO |
Quote |
Chart |
News |
PowerRating). The latter was
caught scrambling for buyers as volume was barely half of average.


image src=”https://tradingmarkets.com/media/2003/Tim/tt082803-03.gif” /> 


Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating) found nice
support at its 50-day but did not move higher along with the majority of
issues.

 image src=”https://tradingmarkets.com/media/2003/Tim/tt082803-04.gif” /> 


Metrologic
(
MTLG |
Quote |
Chart |
News |
PowerRating) was a
recent breakout through a double bottom base at 39.40.  The stock was unable
to hold its pivot at the close even though volume came in nice and heavy.


image src=”https://tradingmarkets.com/media/2003/Tim/tt082803-05.gif” /> 


Concord Camera

(
LENS |
Quote |
Chart |
News |
PowerRating) broke out yesterday through 11.40 (a weekly chart
shows the entire base).  The stock caught a slight follow-through today.

 image src=”https://tradingmarkets.com/media/2003/Tim/tt082803-06.gif” />


image src=”https://tradingmarkets.com/media/2003/Tim/tt082803-08.gif” />

Should anyone be trading
right now? Absolutely, but only if something sets up properly. When a
stock breaks out with only 100,000 shares trading and I’m trying to buy at
least 10-20,000 shares, you can be fairly certain I’ll take a pass on the
move. There are many stocks setting up. Names from the Internet, Semi and
Medical sectors such as Gilead Sciences

(
GILD |
Quote |
Chart |
News |
PowerRating) continue to set up. 

 image src=”https://tradingmarkets.com/media/2003/Tim/tt082803-07.gif” />

When the real players
return from the US Open, we should see a pick-up in action. As long as the
market remains healthy and people are in the buying mood, we should see good
opportunities.

Enjoy the long weekend and
take a deep breath, because this may be a busy autumn.


Tim Truebenbach