We have four setups today. Yesterday was a very narrow range day across the board for most of the major market indices, and today intraday traders will be looking for breakout conditions.
MAXIM: This would be an intraday high and run candidate. We can draw a neckline that also doubles as the lower edge of a potential triangle of some sort. After a narrow range day, traders will look to play in the direction of any first hour breakout to see if it can hit and two day high or low and keep going. Best to play this intraday, off a 10- or 15M chart, and enter on a small retracement pattern such as a 2-4 bar bull or bear flag, once yesterday's high or low is broken.
NEWMONT MINING: Gold stocks are seeing the public dive in big time at this point, because they all know that the Dollar is going to zero. With this straight up trajectory, all I know is that sudden reversals might materialize out of the blue. If you look at the Dollar Index chart, you can see a harami pattern forming here, so maybe things will get exciting. Be on the lookout for John Murphy on CNBC, and see if he will be asked to predict an upside target for gold, to which he will certainly say "$450". Any reversal is best played intraday.
XILINX: Stalked this one for ages, and now we can do it again. If yesterday's low of 36.91 is broken, I will wait for a few minutes for the smoke to clear, and then purchase December 37.50 PUTS with an initial stop loss at 37.88.
CISCO: Reaches the upside target of the ABC Correction to the 20-day EMA and is now on a test of top. Watch for intraday breakout conditions should yesterday's low be broken and you can scalp off the 10- or 15-minute charts. Same on the upside, should it be able to lift off...
That's it for today's picks.
03.12.03 09:28 #