Ciena
Corp (NASDAQ: CIEN)
Market Call™ for January 2, 2001
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.
As we go into the New Year, I would like to wish all our readers a Happy New
Year.
We have changed the charts we use to 30-minute charts to enable quicker
entry and exit as well as smaller stops for Day Trading purposes.
A trader doesn’t care if the market is rising or falling, there are
profits that can be made from the long side and the short side. Being out
of a stock and having no position in a stock is also a trading decision.
Staying out during declines can be a profitable decision.
The use of real time 30 minute charts will help your entry and exit of
trades.
Focus on Exit �
When a trade entered goes as planned, the next step is to exit the trade.
If you are following a trend following method such as crossing moving
averages, MACD signals, or Momentum, these indicators will also be your
trigger to exit.
Many methods will keep you in a stock either long or short. Other methods
will use one or more indicators just for exit, and another for entry.
Let’s look at our chart below on Ciena Corp. (NASDAQ: CIEN).
After a large decline during the first two weeks of December, CIEN rallied
on MACD Buy signals and Moving Average crossover signals.
The most recent rally retraced about 62% of the decline and now CIEN looks
to be rolling over again and may move lower.
The MACD and Moving Average methods just signaled an exit, and for some an
exit and short.
I would exit any longs in CIEN on any morning weakness.
An aggressive trader may want to Short CIEN on any morning weakness.
If a Short were entered, I would use a stop at 84.
Do NOT exit or Short if CIEN gaps up in the morning.
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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.
Copyright �
1998-2000 Tulips and Bears LLC.
All Rights Reserved. Republication of this material,
including posting to message boards or news groups,
without the prior written consent of Tulips and Bears LLC
is strictly prohibited.
Last modified: January 01, 2001
Published By Tulips and Bears
LLC
