An
InvestorLinks article
distributed every market day.
Verticalnet
Inc (NASDAQ: VERT)
Market Call™ for December 9, 1999
Contributed by Mark Seleznov, TrendTrader.com.
The purpose of this Market Call section is to
educate readers in technical analysis patterns and indicators. As with all investment
information, you need to research information and consult your financial advisor before
initiating any strategies that are contained in Market Call.
Also, you must realize that as with all trading strategies,
opinions can change quickly depending on market conditions and developments.
This column tries to present historical examples, potential set
ups, and examples of entry and exit strategies.
Staying with the trend.
The big winners occur by staying with the trend when you are right and
cutting losses when you are wrong.
Lets look at historical set up and trade that we focus on often in this
column.
The main style is momentum, using moving averages, MACD, Channel Breakouts,
and Momentum indicators.
We try to catch a stock in motion and follow the trend in a trade. If the
trend reverses, we exit with small losses.
Lets look at Verticalnet Inc. (NASDAQ: VERT).
VERT is a stock that on December 1, 1999 had all of the indications for a
rise that I look for in a stock.
1. It had a 20 bar channel breakout. 2. It had a MACD Buy signal 3. It had the shorter moving average cross the longer. 4. Momentum was moving up
As we look at VERT today, the stock is up from 91 to 132. These kinds of
gains make up for many small losses.
This is a picture of what a breakout could do for a trader. Over the past
week, there have been many breakouts by stocks. These are worth taking a
second look for a performance such as VERT.
Let profits run. Although it may be too late to enter VERT with a
reasonable stop, I would continue to let the profits run. Exit on a
reversal signal only.
Chart courtesy of
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Call Information
Mark A. Seleznov is a General
Securities Principal and Managing Partner of Trend Trader, LLC, a NASD, SIPC broker/dealer firm located in
Scottsdale, Arizona. A professional trader for over 25 years, Mark was a Market Maker on
the Philadelphia Stock Exchange, a Retail Registered Representative, and futures trader.
Mark is an author and recognized expert in equity Day Trading. He conducts seminars in
Equity Day Trading and offers his firm traders training and support. If his firm holds any
positions in the public companies he writes about, it will be noted at the bottom of his
article.
Market Calls is a daily syndicated column on trading by Mark A. Seleznov, Managing Partner
of Trend Trader,
LLC. For information on obtaining Market Calls for your web site,
newspapers, or publication, contact Trend Trader, LLC at 602-948-1146
Disclaimer: Trading in securities may not be suitable for
all individuals. Consult your broker or other professional to determine your suitability.
This is not an offer to buy or sell securities. The advice given above is of a general
nature and should not be taken as a recommendation to buy or sell the referenced security.
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Last modified: March 17, 2001
Published By Tulips and Bears
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