January 11, 2001 Breakout Candidates:
(Format is Symbol, Company Name, Resistance, Target)
AEIS--Advanced Energy Ind--27 1/2--31.00--Electronics
AGIL--Agile Software--39.00--43.00--Software
ALLY--Alliance Gaming--11 9/16--13.00--Casinos
AMKR--Amkor--19 5/8--22.00--Semiconductor
ANDW--Andrew Corp--27 1/2--30.00--Communications
AXTI--AXT Inc--43.00--47.00--Semiconductor
BEAV--BE Aerospace--19 5/8--21.00--Aerospace
BSYS--Bisys Group--55 3/4--60.00--Computer Services
CFBX--Community Bankshares--19 1/4--22.00--Regional Bank
CIEN--Ciena--89 1/2--100.00--Communications Equip
CROS--Crossman--25 1/8--27.00--Construction Services (Low Volume)
CRUS--Cirrus Logic--28.00--32.00--Semiconductor
CTL--Century Tel--38 1/2--42.00--Communications
CUBE--Cube Micro--12 1/16--13.00--Semiconductor
CWOM--Choice One--13 1/2--15.00--Communications
DGIN--Digital Insight--20.00--23.00--Computer Services
DGIX--Digex--27 3/8--30.00--Computer Services
DRYR--Dreyers Ice Cream--34 5/8--38.00--Food Processing
ECLP--Eclipsys--28.00--31.00--Software
EFII--Electronics Imaging--16 3/4--19.00--Software
FAF--First American--33.00--36.00--Insurance
HPC--Hercules--20 3/16--23.00--Paper Products
HOTT--Hot Topic--21 1/2--24.00--Retail
HSIC--Henry Schien--36 1/2--40.00--Medical Equip
INFS--Infocus--17 1/2--20.00--Computer Peripheals
INFT--Inforte--17 3/4--20.00--Computer Services (Low Volume)
ITCD--ITC Datacom--9 1/2--11.00--Communication Services
JDEC--JD Edwards--19 1/4--21.00--Software
JNIC--JNI Corp--22 1/2--25.00--Semiconductor
LRCX--Lam Research--20 1/2--23 1/2--Semiconductor
MUSE--Micromuse--60.00--66.00--Software
MXIM--Maxim Integrated--56 1/4--62.00--Semiconductor
NHAN--NHancement Tech--7.00--9.00--Software
NIS--Nova Corp--21 3/4--24.00--Consumer Fin Servs
NUE--Nuecor--41 1/4--45.00--Iron & Steel
NVDA--Nvidia--45.00--49.00--Semiconductor
ORCL--Oracle--33 1/2--36.00--Software
PLMD--Polymedia--39 1/2--44.00--Medical Equip
PSFT--Peoplesoft--50.00--55.00--Software
QSFT--Quest Software--29.00--31.00--Sofware
ROIA--Radio One--14.00--17.00--Cable TV
SEBL--Siebel--71.00--76.00--Software
SEI--Seitel--19 3/4--21.00--Oil & Gas (Low Volume)
SQNM--Sequenom--16 5/16--18.00--Biotech
STRA--Strayer Education--27.00--30.00--Education (Low Volume)
SWBT--SW Bank--45 5/8--50.00--Regional Banks
TSIX--360 Networks--15.00--16 1/2--Communication Services
VRSN--Verisign--85.00--93.00--Software
WBST--Webster Financial--30 5/8--35.00--S&L
WWCA--Western Wireless--48 1/2--52.00--Comm Services
ZRAN--Zoran--18 1/2--21.00--Semiconductor
After the rallies we've had the past couple of days in the Nasdaq, it's easy to sit back a feel a little fuzzy inside. I will, however, remind everyone that we are still in the downtrend channel that began at the end of August. Until it breaks, I'm going to be cautious with every move I make. It looks like we have Resistance in the 2650 area before we can break it. I've added a lot of Breakout Candidates to the list, and we could have some nice ones if the we get a continuation in the rally. If the rally fizzles out and rolls over, I will go short when my trend line on the 60 minute chart breaks.
Short List on Nasdaq Breakdown:
Biotechs: PDLI, ABSC, ABGX, HGSI, DNA, IMNX, MEDI, IMCL, MRK
Technology: PMCS, RIMM, BLDP, OPWV, ARBA, JNPR, VTSS, ADBE, ONIS
**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, they usually pull back and underperform.
**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 |
