Step Aside

February 9, 2001
Dave Landry

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.

On
Friday, the Nasdaq gapped lower on the open (a) and ground lower all day in a
choppy fashion. This action has it closing poorly (b).

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About the only good I could
find is that the three-day average of the NYSE TRIN is at its highest level in quite
a while and it looks like we could get a reversal in the VIX index soon. This is
nothing to write home about, but does suggests that things are beginning to get
oversold.

So what do we do? Many
stocks on the short side remain oversold so there’s not too much setting up
there. I think the best thing we can do in this environment is to step aside and
let it fall. Then, once we have some signals and signs of a reversal, we’ll play
the bounce. So, until then, keep it light.

Looking to potential setups,
Advanced Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating), mentioned recently, still looks like it has
longer-term potential.Â

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Insight Enterprises
(
NSIT |
Quote |
Chart |
News |
PowerRating), on theÂ Pullbacks
Off Highs List, also looks like it has the potential to rally out of a big
picture low-level cup and handle. Just don’t overstay your welcome here as there
is overhead resistance in the 30’s.

No Tickie, No Tradie

Ironically, the tonight’s “no tickie, no tradie” award goes, once
again, to International Rectifier
(
IRF |
Quote |
Chart |
News |
PowerRating). Again, the stock sells off hard (a)
but comes no where near a possible entry (b). Wait for follow through,
especially in uncertain times.

Random Musings

Early this morning, I was cleaning
out my inbox and came across this email. I couldn’t bring myself to delete it. I
figured you guys (and gals) might get a kick out of it.

Sent: Friday, September 01, 2000 8:53 AM

To: suggestions

Subject: TradingMarkets.com COMMENT

To Dave Landry:

“I suggest that Dave Landry just stick to his stock picks for the next day and forget about his negative comments on what the market will probably
do based on the VIX Index. He mentions this index predicting a market correction everyday since August21. I have been out of the market each day since he has been predicting a correction.
Mr. Landry presents good stock picks but his prediction on what the market should do is sick.”