New
Focus Inc (NASDAQ: NUFO)
Market Call™ for January 25, 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.
Indicating an Exit
Two of my favorites trading indicators are Moving Average Crossovers and
MACD. When these two indicators in sync, trading signals tend to be more
reliable.
I also use and watch channel breakouts of support and resistance.
The move off Friday’s lows was impressive. It coincides with a very
oversold condition that the market has been in for weeks. The move
coincides with monthly and yearly cycle lows.
Do we have a tradable bottom?
I feel the risk vs. reward says YES!
As always, we need to manage risk and use stops.
Focus on Exit
Let's look at New Focus, Inc. (NASDAQ:
NUFO)
After making a terrific run from a low of 34 on Jan 12th to a high of 56
5/16 on Jan 24th Nufo at least for now appears it may be running out of
steam. Looking at our moving averages our 5 period moving averages crossed
over our 20 period signaling a sell in the stock.
Also our MACD crossed
below the signal line giving us further confirmation to exit the stock.
If you did not exit today I would exit now and wait for one or both of my
indicators to confirm a buy before reentering.
As an opening position I
would look to go short if NUFO were to break 48 15/16. As a short at 48
15/16 I would look to cover if my indicators turned upward. I would look to
a possible downside of 39 � filling in the gap from Jan 17th. The stock may
see some additional support at 45. At this level I would look to adjust my
stop to lock in any profits.
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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: January 25, 2001
Published By Tulips and Bears
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