Sun
Microsystems (NASDAQ: SUNW)
Market Call™ for April 20, 2000
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.
Focus on Exit � Take what the market gives you, the market is always
right.
Many stocks have rebounded recently. We have moved up during the past few
days from a very oversold condition, but some stocks look like they may have
run their course already.
The MACD indicator that we look at each day, is a good indicator of momentum
and can signal a change in direction.
Let’s look at an exit strategy using Sun Microsystems (NASDAQ:
SUNW).
SUNW started bottoming early Monday morning.
However, the MACD has now turned back negative and today’s price action
confirms that SUNW may be turning back down again.
A MACD sell signal occurred late this afternoon, April 19, 2000.
If SUNW opens up down in the morning, I would exit longs in SUNW.
An aggressive trader may want to consider a Short on a break down.
I would enter a stop at 92.
If SUNW opens up in the morning, do NOT exit and do NOT short SUNW.
Chart courtesy of
Interested in adding Market Call to
your website?
Click here for details: Market
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: March 17, 2001
Published By Tulips and Bears
LLC
