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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (37953)	8/7/2002 1:30:42 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69173

Trading Ideas: SEARCH by Dave Landry, Director of Research TradingMarkets.Com August 7, 2002 On Tuesday, the Nasdaq gapped higher and after a brief pullback, rallied nicely in early trading. It then generally worked its way higher throughout the day. Finally, it sold off going into the close but still managed to close well. The S&P also put in a decent day. So what do we do? As you know, one day does not make a bottom. The long-term trend still remains down. However, there's no need to fight it shorter-term--let's see if it can follow through. This is not to say that you should run out in pick bottoms in "one-day wonders" such as the semis. Stick with the few issues that have performed well and appear to be attempting to bottom. Biotech (see below) and to a lesser extent major drugs (which many will need as this bear market continues to linger) are about the only sectors that fit this category. As always, make sure you wait for entries and trail a stop just in case. Looking to potential setups, biotech reversed Monday's sell off. This action suggests its low-level cup and handle remains intact. Therefore, continue to look to nibble in the Ishares (BBH or IBB). Best of luck with your trading on Wednesday!