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

To: Johnny Canuck who wrote (40126)	8/26/2003 1:18:00 AM
From: Johnny Canuck	Respond to of 69283

August 26, 2003 Looking to the indices, on Monday, the Nasdaq traded back and forth in a narrow range. It did manage to close well though. The S&P put in a similar performance. So what do we do? It's not so much what the market did on Monday, it's what it didn't do. It didn't come unglued on the heels of Friday's false breakout. Although, I really hate to read too much into late summer, light volume trading, the fact that the market stabilized is a positive. Also, I'm beginning to see setups on the buy side in areas such as retail, cyclicals, and semiconductors. However, since the S&P remains stuck in a trading range and volume remains light as summer winds down, I don't see any reason to get aggressive. Therefore, look to nibble in those stronger sectors mentioned above but wait for signs that their uptrends are resuming (e.g. entries). Looking to potential setups, Deere & Co. (DE) in the strong cyclicals, looks like it has the potential to resume its accelerating uptrend out of a Trend Knockout (as usual, if you need the rules, shoot me an email). Best of luck with your trading on Tuesday!