Trading Range, Oh, Trading Range

November 26, 2002
Dave Floyd

Not a bad day actually given the small travel range experienced by the
futures.Â Once again, the SOX was the lead sled dog.Â I trust you took advantage
of the trade in Micron Technology
(
MU |
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PowerRating) at
the 15.85 level featured in yesterday’s column.

However, given that the S&P futures closed with an inside day, the spring has
simply gotten tighter.Â With the techs so extended it would be logical to be
looking for a pullback, but every day defies gravity.Â Rather than question, just
look for high-probability entry points and thank the trading gods that
speculative money is still with us even as the bear market is 2.5 years old.

Again, the quick spikes on the one-minute bars were few, so I spent most of
my time viewing the 5- and 15-minute bars for pullback entries.Â I focused on
Advanced Micro Devices
(
AMD |
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PowerRating).Â While it
is only an $8 stock, it is very liquid and extremely orderly.Â Sure you will not
get .25 and .50 spikes in price, but what you will get is a stock that trends
nicely in a very choppy market.Â If you are comfortable throwing around share
size, a few thousand shares for .10 cents a few times a day makes the trading
account look OK when all is said and done.