Why Is This Day Different From Any Other?
There is no doubt that
today’s slingshot move on the Nasdaq back from its lows to turn
positive during the final two hours will have the analysts talking. You
need to turn off the TV and do your homework…let the markets do the talking in
other words.Â
The market has been dealing in these short-lived
rays of hope for several month, always succeeding in disappointing the bulls.
Yet the long-term case for possible support remains intact. Refer to my February
23 Chart of the Day.
Also, once again, I urge to review
the Market
Bias page tomorrow morning for potential multiple signals.
Now to today’s chart.
In your own trading, you may be
using patterns and indicators entirely different from my own. Still, some
general principles probably apply to everyone. I’m always looking for multiple
patterns to hit simultaneously. In my experience, the odds are always better
that a good move will emerge from this kind of setup. What’s nice is that the
main work of identifying these potential setups is done after market hours–when
you’re away from the stress of the active markets. You find the candidates. You
watch them the next day for the setup to take shape. You take action if it does.
You stay on the sidelines if it doesn’t.
IDEC Pharmaceuticals
(
IDPH |
Quote |
Chart |
News |
PowerRating) is
one I’ll be watching tomorrow. In Thursday’s action, it pulled back to a
confluence of its 200-day moving average, range-lows of the past four months,
and a 10-month trendline. This also close to IDPH’s 50% retracement off the May
2000 lows and the Dec. 2000 highs.
Okay, the market’s closed. Let’s get
to work.
See you Friday,