Microsoft
Corporation (NASDAQ: MSFT)
Market Call™ for December 15, 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.
As the post election rally failed to materialize, once again focusing on
exit is critical to protect gains.
Two days ago, we highlighted CIEN as having a pattern that could signal a
reversal. Yesterday we took a look at the same pattern in BRCM.
Today, we can use MSFT, as an example.
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
Microsoft Corporation (NASDAQ: MSFT).
MSFT is a stock that as we look at the signals that occurred, we see a
pattern of lower highs in rallies and lower lows.
On December 8, the Moving average method flashed a Buy signal. But today,
December 14, 2000, MSFT flashed a Sell signal early in the day at 57.
By the end of the day, MSFT was 55 �. After the close, MSFT issued a
earnings warning. I suspect MSFT will be down in the morning.
If you are going to do short term trading, you need go tools and charts. A
eye on the market intra day could have saved a trader some money.
Many stocks look like CIEN, BRCM and MSFT and exit plans should be
determined to maintain profits and avoid losses.
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.
Copyright �
1998-2000 Tulips and Bears LLC.
All Rights Reserved. Republication of this material,
including posting to message boards or news groups,
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is strictly prohibited.
Last modified: December 16, 2000
Published By Tulips and Bears
LLC
