Breakout Candidates for 1/10/00:
(Format is Symbol, Company Name, Resistance, Target)
ACTM--ACT Manufacturing--16 1/2--18.00--Electronics
ADIC--Adv Digital--26.00--29.00--Computer Peripheals**
APCC--Amer Pwr Conv--14.00--15.00--Electronics
CFBX--Community Bankshares--19 1/4--22.00--Regional Bank
CROS--Crossman--25 1/8--27.00--Construction Services (Low Volume)
CTL--Century Tel--38 1/2--42.00--Communications
DRYR--Dreyers Ice Cream--34 5/8--38.00--Food Processing
EFII--Electronics Imaging--16 3/4--19.00--Software
EPEX--Edge Petroleum--10.00--12.00--Oil & Gas
FAF--First American--33.00--36.00--Insurance
GYMB--Gymboree--14 7/8--16.00--Retail Apparel
HPC--Hercules--20 3/16--23.00--Paper Products
INFT--Inforte--17 3/4--20.00--Computer Services (Low Volume)
NIS--Nova Corp--21 3/4--24.00--Consumer Fin Servs
NUE--Nuecor--41 1/4--45.00--Iron & Steel
SAPE--Sapient--17 1/8--18 1/2--Computer Services
SEI--Seitel--19 3/4--21.00--Oil & Gas (Low Volume)
SQNM--Sequenom--16 5/16--18.00--Biotech
SIAL--Sigma Aldrich--41.00--45.00--Chemicals
SSOL--SmartServ Online--11 1/4--13.00--Computer Services
STRA--Strayer Education--27.00--30.00--Education (Low Volume)
Today, I'm going to be watching a 60 minute chart of the Nasdaq more than anything. I would like to see a bounce here and for it to carry over at least until Thursday before I take any aggressive position trades on the short side. In the past couple of months, we have had some terrific opportunities to short. Each time, however, we had a sustained trend line on the charts that spanned a minimum of 3 days. If we do happen to sell off tomorrow and are unable to take out the highs from last week, I may take a couple of small short positions.
ADIC, in my opinion, looks like the best Breakout Csndidate for tomorrow. Be careful playing the Breakouts should anyone decide to do so. Make sure volume is present, and do not go long if any of them break resistance the first 15-20 minutes of trading. Just as importan, protect all positions with Stops and take your profits quickly. Remember, preservation of capital is still our number one priority.
Below are the shorts I've got on my list to consider if the market pukes. I will post a message when, and if, I decide to do anything.
Biotechs: PDLI, ABSC, ABGX, HGSI, DNA, IMNX, MEDI, IMCL
Technology: PMCS, RIMM, BLDP, OPWV, ARBA, JNPR, VTSS
**In order for a Breakout to occur, the stock must trade THRU its Resistance, not at it. Target prices are where I think the stock price could go if they perform well.
**Avoid playing any Breakouts that gap past Resistance the first 15-20 minutes after the open. In my experience, th
**Protect all positions, long and short, with Stops. I normally place a 5% Stop on all of my orders. As an example, if I purchase a stock for $40/share, I will place my Stop at $38. If the price increases, I will trail the increase with my Stop to lock in profits should the Breakout fail and pull back.
**Gentry200m is not an Investment Advisor. Do your own D&D. |
