Creek (NASDAQ: CWTR)
Market Call for December 27, 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.
Buying a Breakout
Many times investors are looking to buy the breakout after a security has
had a period of consolidation. Alternatively, other investors choose to
enter a breakout after a period of confirmation.
A good example of how this strategy is advantageous may be seen in Coldwater
Creek (CWTR). Since December 13th, Coldwater has traded in a tight 2 1/2
point range between 24 ½ and 27. Some investors may have even tried to buy
the breakout on 12/18.
This was a failed break and the stock retraced down to 22, looking like a
break to the down side. The investor buying and selling on the initial
breaks may find they can never stay in a trade and are always on the wrong
Looking at Coldwater at the close today shows the stock broke above the
previous short-term consolidation at 27, went to a high of 32 3/8 today
without any large retracement until the end of the day closing at 30 7/8.
I would buy Coldwater now and into the morning as long as it is above the 20
period moving average. I would place a stop 5/8 below the 20 period moving
average at the point of entry (as of close today 29 3/8).
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
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.