Simply Unpredictable

• October 15, 2001
• Dave Floyd

Friday’s
report of another Anthrax case, this time in New York City, sent the
markets plummeting before making almost a complete recovery. The markets, as we
all know, are simply unpredictable and continue to defy common sense. For
traders, it can be frustrating. The market continues to offer some good intraday
setups, but they are mainly concentrated in the first hour. The afternoon
sessions have been somewhat lifeless.

This week there are not a lot of
numbers due on the economic front, but a few deserve attention and may set the
tone for trading:

While most of these numbers are
released pre-market, they may very well give us an indication of any further
impact from the World Trade Center incident. A slew of corporate earnings
this week will should also set the tone. Retail sales released last Friday
showed the largest decline in more than nine years. If this trend continues, it
would be a bad sign. Retail stocks are particularly vulnerable here.
Opportunities exist for those who are prepared.

 Key
Technical Numbers

With regards to the earnings theme,
Greg Che and Larry Connors wrote an
excellent article with regards to stock performance after pre-announcement
of earnings.

My second lesson will be up on the
site some time today. While it breaks away from a sequential lesson approach to
my trading style, I believe under the circumstances of the current market, it is
more timely. I trust you will find it useful. As always, feel free to send me
your comments and questions.

Have a great trading day.

Dave