The Name of The Game
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.
Once again, we added more products to
Trader’s
Galleria. For instance, you can now get video tapes as well as audio tapes
from the TradingMarkets 2000 Conference. And, while you’re there, don’t forget
to order my upcoming book on swing
trading at a 20% discount.
Based on recent emails and phone calls, it appears that
many of you are finding these times trying. I suppose the best advice I could
give is to remember that you don’t have to trade everyday. This is especially
true in an uncertain environment. If you are getting beat up emotionally and/or financially,
take a break and observe the market–you’ll be surprised how much you’ll see
(and learn) as a spectator versus being a speculator. Then,
pick your spots carefully and slowly ease back in when you feel the time
is right. The name of the game is long term survival. The markets will
always be there.
On Friday, the Nasdaq gapped lower (a) and kept on going.
It closed on its low (b) which suggests that no one was willing to step up to
the plate before a weekend.
Friday’s action leaves up right at the October lows (c).
Looking at the
weekly chart, we see that this also corresponds with the May lows (a). Let’s
hope we stick here as the next level of support is in the 2600 range (b).
It’s hard to get too excited in here about anything other
than the fact that some of our recent short setups have followed
through. Â
So what do we do? Remain cautious and above all, don’t try
to pick a bottom in here. Nibble if you must on the long side, but, for the most
part, stay defensive and consider a short or two. Where have we heard
that?Â
Looking
to potential setups, Broadvision
(
BVSN |
Quote |
Chart |
News |
PowerRating), on the Internet
Fab 5 List, has formed a low level cup and handle. Just don’t overstay your
welcome here as there is plenty of overhead resistance above 37.
Myriad Genetics
(
MYGN |
Quote |
Chart |
News |
PowerRating), mentioned
Thursday night, closed off its highs on Friday but still looks like it has
potential.
Cima Labs
(
CIMA |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, has formed a high level “micro” cup and handle.
On the short side, Noble Drilling
(
NE |
Quote |
Chart |
News |
PowerRating), on
the Pullbacks
Off Lows List, looks poised to resume its downtrend.
Cooper Cameron
(
CAM |
Quote |
Chart |
News |
PowerRating), mentioned recently,
still  looks vulnerable.
Best
of luck with your trading on Friday!Â
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
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