Still Room Up Top
David Landry is staying behind and enjoying the
sights and sounds of fabulous Las Vegas for a couple more days after
TradingMarkets2000. Tonight’s column is being written by TradersWire’s Duke
Heberlein.
Well, Friday’s rally kind of ended Monday with a whimper, but not all was
bad, as the Nasdaq
(
COMPX |
Quote |
Chart |
News |
PowerRating) managed to make a higher high (a), and several
stocks had large-range days, closed strongly, and some even broke out to new
highs.
How do we proceed in a market like this? Well, the higher high
in the Comp still leaves us in either a bear-market rally mode, or stuck in a range
with a definite bias to the downside, depending on your point of view. In either
case, the market still could have some upside motion left in it – evidenced by
the five up indicators we have tonight on the Market
Bias Indicators. The best plan is most likely to stick with the stocks that
showed strength on Monday, and if the market does decide to flex some muscle
Tuesday, they should be the first to take off. Also, keep some shorts on hand
and be ready to go that way if we go south on Tuesday.
BEA Systems
(
BEAS |
Quote |
Chart |
News |
PowerRating), from the New
60-Day Highs on Double Volume List, took out the October 2 high and made a
new high on an intraday basis. Look for continuation if the stock can take out
(trade above) Monday’s high.
Myriad Genetics
(
MYGN |
Quote |
Chart |
News |
PowerRating), off the Proprietary
Momentum List, is set up in an Expansion Breakout, making wide-range
bar on double average volume. Watch for additional follow-through to the upside
from here.
The NCO Group
(
NCO |
Quote |
Chart |
News |
PowerRating), off the Pullbacks
From Highs List, sold off early in Monday’s trading but reversed and closed
in the upper half of its range. Look for for it to possibly stage a rally out of
this latest pullback. Alza Corp.
(
AZA |
Quote |
Chart |
News |
PowerRating) started to make a move out of its
pullback and could challenge its prior highs.
Looking at the short side, Chartered Semiconductor
(
CHRT |
Quote |
Chart |
News |
PowerRating)
is consolidating in a small pennant at its lows, look for a short opportunity
here if it breaks to the downside, and Celera Genomics
(
CRA |
Quote |
Chart |
News |
PowerRating) closed poorly
and looks vulnerable in a short, two-bar pullback from lows. If the market is
weaker Tuesday, CRA could find itself subject to downside pressure.
Best of luck with your trading on Tuesday!
P.S. – Protective stops on every trade.
P.P.S- I really enjoyed meeting all of you in Las Vegas and
hearing your suggestions and comments regarding the website, trading, and
TradersWire. It is all of you who allow us to be here for you every day. To
those of you who were unable to make it this year, hopefully next year I will
get to see you, TM2000 should only get better.