Part Three of the DWA Market Analysis Report:
The-Trader's-Corner
Trader's Corner Ideas
This section of the report is designed to provide the "trader"
with timely, actionable trading ideas on a regular basis. It is meant
primarily for the more aggressive traders, yet there are times when
the idea will be acceptable for traders and investors alike. For those
who subscribe to the database, you can view the charts of all the
stocks on the Trader's Corner in one file under the Reports, Charts,
Trader's Corner function. At times the recommendations in this
section may differ slightly from what you see in the other parts of the
report; this is because in many cases the reasons for owning the stock
and what the objectives are will differ for a short term trader versus
the investor. This section is designed for those wanting to pick up
dimes in front of a bulldozer. Be sure to remember that this page is
for traders.
Date Entry Last Sell Posture/
Stock Symbol Bot Price Price Tgt/PO Stop Comments
Nucor *NUE 07/09 49 11-16 45 13-16 Lo 60s 44 Sold half
Lucent LU 08/16 65 13-16 63 1-4 79 62
Ericsson LM *ERICY 08/23 33 3-8 31 -- 29
Lexmark *LXK 08/25 75 15-16 82 1-2 105 81 Sold half
Oracle Systems ORCL 09/07 41 1-2 43 5-16 Lo 50's 41 Sold half
JDS Uniphase *JDSU 09/07 113 1-4 115 15-16 -- 102
Unisys *UIS 09/13 45 5-8 44 5-16 51 41 Sold half
Adlac Comm *ADLAC 09/28 59 7-8 58 1-2 69 56
Legend:
** = New Addition R = Removed # = Acceptable play for traders & investors
* = Still Actionable at current levels s = Short position
Mkt = At the Market PB = Pullback B/E = Breakeven PO = Price Obj
Comments:
No new additions today.
Oracle Systems (ORCL): Raise stop point for short
term traders to 41.
Lucent (LU): Hold current positions with a stop of
62.
JDS Uniphase (JDSU): Ran up to 121 then backed off
toward the end of the day. We will look to sell
half of our short term trading position at 121
should it get up there again.
Top of ReportStatistically Significant Technical Breakouts
Double Tops
New Signals Multiple Signals
AMTD 19-1/2 ADAC 9-1/2
ATHM 42 ASML 68
BHW 37 BEL 68
CAO 21 CA 59
CPTH 39 CUBE 45
DRTE 44 JMED 32
DTPI 44 LCOS 50
ETYS 65 MSTR 48
GIBG 5-1/2 NATI 35
ICIX 21 NVDM 15
KLAC 71 PAIR 14
LRCX 65 SPGLA 10-1/2
LSI 57 SUNW 95
MERQ 62 SYMC 36
MGCX 19 TAN 52
MMC 69 TDS 89
NITE 32 USWB 33
NTPA 37 VOD 236
OXGN 11 VRTY 66
PMCS 96
PROX 48
PSUN 29
RESM 29
RT 23
SDLI 83
SII 44
SIII 11-1/2
SMTC 39
TGLO 14-1/2
VICR 21
WINK 41
XLNX 69
Triple Tops
New Signals Multiple Signals
CINR 30 AMZN 69
GSNX 18 IMAL 18
SLVN 19-1/2 JDSU 118
NVLS 70
TSFW 27
Double Bottoms
New Signals Multiple Signals
ANF 34 ANCR 21
IMIC 2-1/4 BSC 38
KSWS 31 CGR 4
LU 63 CLTR 14-1/2
PSCX 7-1/2 COL 21
WWWX 3-1/2 DFS 24
EL 39
ESRX 75
FFD 11-1/2
FLO 14
LOD 3-3/4
LVCI 14-1/2
LVLT 52
MU 74
NCE 32
PCTL 3-3/4
SAWS 31
SKY 26
TCO 11
TRMS 16-1/2
UCOMA 75
Triple Bottoms
New Signals Multiple Signals
CORR 19-1/2 CL 46
DIIG 34 CTXS 60
MAT 21
WH 15
[ADAC] Adac Laboratories ($9.875) broke a double top at $9.50.
This completes a bullish catapult formation and follows a higher
bottom made at 7 1-2. Trying to make a definitive bottom after a
year-long sell off. Ok to bottom fish here for more aggressive traders
as there is room to trade up to 15 before the trend line is met.
[AMTD] Ameritrade Holding Corp-Cl A ($19.125) broke a double
top at $19.50. Trend and relative strength are still negative despite
this breakout. Stock has resistance in the lower 20'S. Others look
better right now.
[AMZN] Amazon.Com Inc. ($80.500) broke a spread triple top at
$69.00. Stock up strong today and it now lies at the top of its ten
week trading band. Need to see a pullback or some sort of
consolidation before initiating new positions.
[ANCR] Ancor Communications ($20.000) broke a double bottom at
$21.00. Third consecutive sell signal here though the stock remains
above its uptrend line. Would stay away from ANCR for now and
hedge if still long. Stock has been performing worse than the overall
market.
[ASML] Asm Lithograpghy HLDG NV ($68.563) broke a double top
at $68.00. This break completes a bullish triangle as the trend and RS
remain positive. Okay to play here.
[ATHM] Excite@Home Corp ($43.438) broke a double top at
$42.00. While the stock is back on a buy signal the RS and trend
remain negative. No new positions here.
[BEL] Bell Atlantic Corp ($65.750) broke a double top at $68.00.
This break completes a bullish catapult as the trend remains positive.
The RS is in a column of X's. Okay to play here.
[BHW] Bell & Howell Co ($36.688) broke a double top at $37.00.
Bouncing off its bullish support line. However, relative strength is
bearish so this is only for traders. 31 breaks a triple bottom and also
violates the uptrend line so use that as the stop. Would look to enter
in the 35 area.
[BSC] Bear Stearns Companies, Inc. ($38.375) broke a double
bottom at $38.00. Completes a bearish catapult formation as well.
Trend and relative strength are bearish and would avoid BSC here.
[CA] Computer Associates Intl Inc ($58.750) broke a double top at
$59.00. Good support is formed in the 55 area and we could now see
a test of old highs. RS and trend are positive. Okay to play here.
[CAO] CSK Auto Corp. ($22.875) broke a double top at $21.00. First
buy signal off the bottom and puts the stock just below the bearish
resistance line. Would take a move to 24 to get through it, and we
would wait for that to occur before considering buying. RS is
negative.
[CINR] Cinar Films Inc ($29.625) broke a triple top at $30.00. Trend
is now positive as CINR breaks through strong resistance. Daily
momentum just turned positive and RS will likely reverse up to X's
this week. Okay to buy CINR with the optimum buy point being a
pullback to the 27 area. On the downside, 22 is a double bottom
while it would take a move to 19.5 to break a spread quadruple
bottom and violate all near term support.
[CL] Colgate Palmolive Co ($46.063) broke a spread triple bottom at
$46.00. This hits our stop point on the Best page as it also violates
the bullish support line. For those still long we would look to exit or
hedge CL, especially on a bounce back up.
[CLTR] Coulter Pharmaceutical Inc. ($12.750) broke a double
bottom at $14.50. Yet another sell signal and follows a lower top.
New low and takes out the September 1998 low. Trend is negative
and RS is in O's. Avoid.
[COL] Columbia/Hca Healthcare Corp ($20.563) broke a double
bottom at $21.00. Third straight sell signal and follows another lower
top. Also violates the bullish support line. RS is negative. Take signal
if long, otherwise avoid.
[CORR] Cor Therapeutics Inc ($19.813) broke a triple bottom at
$19.50. Topped out at 27 recently after a strong run up. This
breakdown takes the stock through all near term support and from
here could see a test of the uptrend line at 15 1-2. Those long should
lighten up or hedge here. RS is in X's.
[CPTH] Critical Path, Inc. ($41.375) broke a double top at $39.00.
Stock is now back on a buy signal as the trend and RS remain
negative. Would limit plays to traders only on a pullback to the 38
area.
[CTXS] Citrix Systems Inc ($58.563) broke a spread triple bottom at
$60.00. This break follows a lower top and violates a strong area
support. Can lighten up here. A move to 56 will violate the uptrend
line.
[CUBE] C Cube Microsystems Inc ($43.906) broke a double top at
$45.00. Third consecutive buy signal here and a new high as well.
Trend and relative strength are positive. Would wait for pullbacks to
the mid to upper 30's to buy. 30 would violate the uptrend line and
would be the stop loss.
[DFS] Department 56 Inc ($23.875) broke a double bottom at $24.00.
Trend and RS remain negative. Avoid.
[DIIG] Dii Group Inc ($33.250) broke a triple bottom at $34.00.
Stock has been working sideways for a couple of months with
resistance around 38-39 and support in the 33-35 range. Still in an
uptrend with the RS chart in X's. Those long can give this one a little
room here. A move to 32 would break a spread triple bottom and
below that the bullish support line lies at 29.
[DTPI] Diamond Tech Partners Inc ($43.250) broke a double top at
$44.00. Stock bounced back after breaking a spread triple bottom the
other day. On the downside, a move to 38 would now break a double
bottom while a rally to 50 would take DTPI to new highs. Buyers
here use a stop or hedge point of 38.
[EL] Estee Lauder Companies ($40.438) broke a double bottom at
$39.00. Stock now lies just above its uptrend line with RS in a
column of O's. If still long can give this one room to 36, a violation
of the bullish support line.
[ESRX] Express Scripts Inc ($75.875) broke a double bottom at
$75.00. Third straight sell signal as bearish signal has formed. This
breakdown also brings a violation of the bullish support line. Those
still long should sell or hedge here. RS is still positive.
[ETYS] eToys Inc. ($65.875) broke a double top at $65.00. This
break follows a higher bottom as the trend and RS remain positive.
Look to play on a pullback.
[FLO] Flowers Industries Inc ($14.500) broke a double bottom at
$14.00. New low for this stock as negative trend continues. RS is
negative too. Continue to avoid. Next support is around 13 1-2.
[GSNX] Gasonics International Corp ($17.938) broke a triple top at
$18.00. This break completes a shakeout pattern with RS in a column
of X's. Okay to play here.
[ICIX] Intermedia Communications of Florida ($21.000) broke a
double top at $21.00. First buy signal off the bottom and good
support is formed in the 18.5 area. Okay for bottom fishers with a
stop loss of 18, a triple bottom break.
[JDSU] JDS Uniphase Corporation ($115.938) broke a spread triple
top at $118.00. Good support is formed in the 106 area as the trend
and RS remain positive. Look to play on a pullback to the 110 area.
[JMED] Jones Medical Inds Inc ($31.438) broke a double top at
$32.00. New high for this stock and comes after forming initial
support at 24. Trend is positive and RS is in X's. OK to buy JMED
but would prefer to get in on a pullback to the high 20'S. First initial
stop is 23.
[KLAC] Kla-Tencor Corp ($69.375) broke a double top at $71.00.
This break reverses a series of lower top and changes the trend back
to positive. Okay to play here.
[KSWS] K Swiss Inc ($30.750) broke a double bottom at $31.00.
Stock now ready to test its recent lows and a move to 28 would
violate the August lows. Trend is negative here and would hold off
for now.
[LCOS] Lycos Inc ($50.375) broke a double top at $50.00. Third
consecutive buy signal and this break follows a higher bottom. RS is
in a column of X's. Okay to play here.
[LSI] Lsi Logic Corp ($56.500) broke a double top at $57.00. Stock
back on a buy signal and follows a higher bottom. RS is positive as is
the trend. Okay to play here.
[LVCI] Laser Vision Centers Inc ($14.563) broke a double bottom at
$14.50. Yet another sell signal and follows a lower top made at 19.
Trend is negative and RS is in O's. Avoid.
[LVLT] Level 3 Communications Inc ($52.375) broke a double
bottom at $52.00. This break completes a bearish catapult as the
trend remains negative. If long can move to the sidelines.
[MAT] Mattel Inc ($20.313) broke a spread triple bottom at $21.00.
Stock has now gone through last support at 22 after making lower
highs and lows. RS and momentums are also negative. Continue to
avoid.
[MERQ] Mercury Interactive Corp ($62.500) broke a double top at
$62.00. Rallied to 65 to test its previous highs. Extended right now
and those looking to buy should wait for pullbacks to initiate
positions.
[MMC] Marsh & McLennan Cos Inc ($68.125) broke a double top at
$69.00. This breakout comes from below the bearish resistance line
and the RS chart is still in O's. Too many things still stacked against
this one. Sidelines for now.
[MU] Micron Technology Inc ($72.125) broke a double bottom at
$74.00. This break also violates a spread triple bottom taking the
stock through all near term support. Can lighten up here or take some
other type of defensive action.
[NATI] National Instruments Corp. ($34.063) broke a double top at
$35.00. 4TH straight buy signal and a new high as well. Would wait
for pullbacks in NATI to initiate new long positions. 25 would
violate June low and would use that as the stop loss.
[NCE] New Century Energies ($32.438) broke a double bottom at
$32.00. Series of lower tops and lower bottoms persists, with this
marking a new low. Trend is negative as is RS; we would continue to
avoid.
[NITE] Knight/Trimark Group, Inc. ($31.000) broke a double top at
$32.00. Trend and relative strength are negative. Hold off for now.
[NTPA] Netopia Inc ($40.000) broke a double top at $37.00. Stock
back on a buy signal and is now testing old highs. RS is positive and
this break follows a higher bottom. Look to play on a pullback.
[NVDM] Novadigm Incorporated ($14.750) broke a double top at
$15.00. This break takes the stock to new highs. Traders can buy with
a stop loss of 12 1-2 which breaks a double bottom.
[NVLS] Novellus Systems Inc ($67.625) broke a triple top at $70.00.
Third consecutive buy signal with good support formed in the 62-63
area. Okay to play here adding on any dips.
[OXGN] Oxigene Inc ($10.875) broke a double top at $11.00. Was
able to find support at 8 1-2. But still has considerable resistance in
the low teens and RS is negative. Others look better here.
[PAIR] Pairgain Technologies Inc ($13.500) broke a double top at
$14.00. Second consecutive buy signal and follows a higher bottom.
RS vs DWA is in a column of X's. Okay to initiate partial positions
here and add on any pullback.
[PMCS] PMC Sierra Inc. ($94.375) broke a double top at $96.00.
Stock back on a buy signal and follows a higher bottom. RS and
trend are positive. Okay to play here.
[PROX] Proxim Inc ($49.125) broke a double top at $48.00. First
buy signal off the bottom after falling to a low of 39. Still has plenty
of resistance in the mid 50's then the old high is 61. Trend is still
negative and RS chart is in O's. Others look better here.
[RESM] Resmed Inc ($30.625) broke a double top at $29.00. Was
able to find support in the 24-25 area, but is now right up against the
bearish resistance line, and has plenty of overhead resistance in the
mid 30'S. Others look better here.
[SAWS] Sawtek ($31.000) broke a double bottom at $31.00. Has
again run into strong resistance in the mid 30'S. Still has some decent
support in 29-30 area, then below that the bullish support line lies at
27. RS is positive. Those long can give this one a little room and use
26 as the worst case stop.
[SII] Smith International Inc ($42.813) broke a double top at $44.00.
Stock back on a buy signal with good support formed in the 40 area.
RS remains positive. Can trade this one here.
[SIII] S3 Inc ($11.313) broke a double top at $11.50. Above its
uptrend line but relative strength is bearish. A move to 13 would take
the stock to new yearly highs. A move to 8 would violate the uptrend
line and would be the stop loss here.
[SLVN] Sylvan Learning Systems Inc ($18.625) broke a triple top at
$19.50. RS is negative and the stock now lies just below its
downtrend line. RS is negative. No new positions here.
[SMTC] Semtech Corp ($38.313) broke a double top at $39.00. Stock
now back on a buy signal and this break follows a higher bottom.
Could now see a test of old highs. Okay to play here.
[SUNW] Sun Microsystems Inc ($91.563) broke a double top at
$95.00. 4TH successive buy signal here and it takes SUNW to new
highs. Wait for pullbacks to the upper 80's to buy this one. A move to
74 would violate the uptrend line.
[SYMC] Symantec Corp ($35.125) broke a double top at $36.00.
Good support is formed in the 32 area and could now see a test of old
highs. Trend and RS are positive. Okay to play here with a
stop/hedge point of 31, a triple bottom break.
[TAN] Tandy Corp ($50.875) broke a double top at $52.00.
Completes a bullish triangle as well. Trend and relative strength are
positive here. A move to 57 would be new highs. Traders can buy
here. 46 would break a double bottom and traders use that as the stop
loss.
[TGLO] Theglobe.Com Inc ($14.125) broke a double top at $14.50.
First buy signal off the bottom though the RS and trend remain
negative. No new positions here.
Trimeris Inc. ($16.625) broke a double bottom at $16.50.
Second straight sell signal and aborts a shakeout pattern. Also
violates the bullish support line on this breakdown. Those long
should lighten up or hedge positions here.
[TSFW] Tsi International Software LTD ($26.813) broke a triple top
at $27.00. Trend is positive as is the RS. Good support is formed in
the 23 area. Okay to play here with a stop/hedge point of 22, a triple
bottom break.
[VICR] Vicor Corp ($20.875) broke a double top at $21.00. Steady
uptrend persists as good support has formed in the 18 1-2 area. The
overall trend is positive and the RS chart is in X's. Ok to buy here and
use 18 as the stop point as that would violate the long term bullish
support line.
[VOD] Vodafone Air Touch Public Limited Co. ($234.188) broke a
double top at $236.00. Second consecutive buy signal and follows a
higher bottom. This break marks a new chart high. Okay to trade here
with the first sign of trouble coming at 222, a double bottom break.
[VRTY] Verity Inc ($65.500) broke a double top at $66.00. This
break marks a new chart high and follows a higher bottom. RS and
trend are positive. Look to catch this one on a pullback to the 63 area.
[WH] Whitman Corp ($14.875) broke a spread quadruple bottom at
$15.00. This follows a double bottom at 15 1-2 and now puts it back
down to where it bottomed this time last year. A move to 14 1-2
would take this stock through all good near term support and if long
we would use that as your stop point. Avoid otherwise.
[WINK] Wink Communications, Inc. ($42.250) broke a double top at
$41.00. First buy signal off the bottom with good support in the 35
area. RS is positive. Okay to bottom fish here.
[WWWX] Worldwide Web Networx Corporation ($3.625) broke a
double bottom at $3.50. Stock unable to move through the downtrend
and is now back on a sell signal. Continue to avoid.
[XLNX] Xilinx Inc ($66.875) broke a double top at $69.00. Stock
back on a buy siganl and follows a higher bottom. Need to see this
one move through its downtrend line before initiating new positions.
RS is positive.
[ANF] Abercrombie & Fitch Co. CL A ($34.375) broke a double
bottom at $34.00. Stock once again is unable to move through its
downtrend line. RS is negative and a move to 32 will break a spread
triple bottom.
[DRTE] Dendrite International Inc ($8.500) broke a double top at
$44.00. Stock able to hold its uptrend line for the second time. RS is
positive. Okay to play here. A move to 37 will break a spread triple
bottom.
[LU] Lucent Technologies Inc ($63.250) broke a double bottom at
$63.00. While this break violates the uptrend line the RS is positive
and the stock now lies at an area of support. A move to 62, will break
a spread triple bottom.
[SDLI] SDL Inc ($82.250) broke a double top at $83.00. Stock back
on a buy signal with good support in the 75 area. Look to play on a
pullback to the 78 area. A move to 74 will break a triple bottom.
Telephone & Data Systems Inc ($88.500) broke a double top
at $89.00. Third consecutive buy signal and follows a higher bottom.
This break marks a new chart high and the stock is now trading at the
top of its ten week trading band. Okay to trade here. A move to 82
will break a spread double bottom.
[USWB] US Web ($33.375) broke a double top at $33.00. Stock has
made a nice recovery after finding a bottom at 17 back in August. RS
is now positive as is the trend with good support formed in the 29
area. Okay to play here. A move to 28 will break a triple bottom.
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