Take A Break

November 20, 2001
Dave Landry

On Tuesday, the Nasdaq worked its way lower throughout the
morning, pulled back by mid-day, and then resumed its sell off (in earnest) late
in the day.

The S&P also sold off to close poorly.

So what do we do? It’s
ironic that one day after the media announces "it’s a bull,"
the market sells off. I wish it were that easy, but it’s not. Tuesday’s action
suggests that the correction has begun. The only problem is, chances are we will
have thin trading before Thanksgiving and thin trading on Friday. Therefore,
unless you’re running money and have to be in front of a screen, I think I’d
take some time off. I‘m
pretty sure the market will be there next week. If you do decide to trade, look
to play both sides
but, as always, wait for entries.

Looking to potential setups, Silicon Labs (SLAB),
mentioned recently, remains set up as a Trend Pivot Pullback. See last night’s
commentary for more details.

Smoke ‘Em
If You Got ‘Em

Boston Scientific (BSX),
mentioned recently (a), has been up sharply as of late. If you were fortunate
enough to catch such a parabolic move (b), make sure you lock in a piece and
trail a stop.