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All,
All's right with the world <G>! I feel much better after today's
market action. First of all, my portfolio made a nice up move. Then the
DJI did creep back into its Short Term Up Trend Channel (STUTC) after
spending two days below the bottom of that channel. That was followed by
the NASD setting yet another new all time high. Then, to top that off, most
of the internet stocks that I follow broke out of their short term down
trends either yesterday or today. Therefore, I'm going to open a couple of
internet stock positions tomorrow. The charts all look similar, so I was
drawn to the ones that have been good to me over the last year -- Amazon.Com
(AMZN) and America On Line (AOL).
AMZN at 115 3/32 closed right under the top of its Short Term Down
Trend Channel (STDTC) today, but then broke out in after hours trading after
it announced smaller than expected losses for the quarter. It also bounced
off the bottom of a longer term, wide STUTC on good volume Friday. The top
of that STUTC is at 212 1/4 and the bottom is at 102 1/8. I told you it was
wide <G>. AMZN had a fast 50% correction from its
1/8/99 high of 199.1 to its 1/21/99 low of 92.56. I'll have to watch my
stop on this one <G>. I'll open a position tomorrow. I'll set my initial
target just under the old high at 198 and my initial stop just under the
bottom of the STUTC at 101 3/4.
AOL at 155 also broke out of its STDTC today. It had only pulled back
to about mid-channel of a longer term, wide STUTC. The top of that STUTC is
at 182 1/4 and the bottom at 118 3/4. I fully expect AMZN to test the top
of that channel soon. I'll open a position tomorrow with my target set just
under the top of the STUTC at 182 and the stop set under the 1/22 low at 134
3/4.
I haven't been able to down load my daily data from QP2 yet today.
They must be having problems. If I do get it downloaded, I'll send AMZN.GIF
and AOL.GIF charts to everyone on my email list.
JimG
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