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NOTE: As a Platinum Zone member, you may call Sunny at (760) 930-1050 if you have any questions about terms used herein.

Commentary

We did a little cherry picking today, with the stocks singled out in the Weekend Alerts: NOC & STI. Both broke through their upper pennant lines (the breakout points listed in the table). Rather than hold for overnight I picked off a little intraday profit and will look for re-entry tomorrow.

The Dow Jones ($INDU) is holding nicely above its sjh_Attractor that lies at 8361. and might be now forming a base. A little up yesterday, a little up today, etc is the way bull markets are made. The slope of the trendline the Dow is currently riding is about 30-degrees, which is a nice, sustainable angle. I'm looking for that line to be the "wall-of-worry" line for some time, and expect we will continue following it upward until something compels us to sell.

On an intraday basis the last few days look like a novice scuba diver who can't quite get his buoyancy leveled off. First we sink a little from the day before, then we climb back up and add a little to the pile. Next day, we sink a little and then make the pile a little higher. If that holds true tomorrow, we should sink to 8475 in the morning, and then spend the rest of the day climbing to about 8650.

QQQ

The observation above translates to a move down to 23.00 on the QQQs, followed by a run upward for 23.66 afterward.

Since 23.66 has been an sjh_Attractor for weeks, and weeks, I expect we should at least make it to that level.

In addition, the action on the 15-minute chart over the past several days has formed in inverse Head-and-Shoulders pattern, and as Technicians we would expect the resolution to be to the upside, with the measured move hanging out around 24.36. Even more interestingly, that would be a nice shoulder for the very complex Head-and-Shoulders pattern we have been discussing for weeks in this column. So, a little upside-down H&S is inside a rightside-up H&S.

Don't forget that in yesterday's commentary I expected that the QQQ would make a play for 26.63 with everyone else expecting it to continue on downward. You heard it here first.

STI

This stock, from the Weekend Alerts, broke above our target this morning (in fact the target was the low of the day) and so we bought. It spent the rest of the day climbing, and settled up a hefty 2.02 points from the entry. If it continues on upward tomorrow, we'll get back in for the ride up to 70. Be nimble, however, at 70 as 70.20 is the high from May 17, and it's best not to be greedy around new highs (unless they are broken resoundingly).

ABX

ABX was another beautiful call from the Weekend Alerts. In fact, it gapped open this morning, so we can expect that this is behavior seen in 3rd waves and we should make the run for 18, where the next attractor sits.

Gold

Yesterday we stated that we expected gold to move on upward to 326. It hit a high today of 325, only to close at 321.70. I expect it to continue the move to 326 tomorrow before (as we said yesterday) forming a 4th wave and backing off just a bit.

UNH

Yesterday we said to watch this one on a breakout of 87.95. It accomplished that today, and so I expect we are off to the races, moving toward the 91.50 mark I called yesterday. Watch for this to take 3 or 4 days.

WMT

Wal-Mart Stores also broke above its pennant formation (as called for in the Weekend Alerts) so we should be long for the move to 58.75, with a stop below at 50.87. Move your stop up as price moves up to capture profit if this one takes a nosedive.

CHARTS OF INTEREST FOR THIS COMMENTARY
QQQ	ABX	UNH


NOTE: As a Platinum Zone member, you may call Sunny at (760) 930-1050 if you have any questions about terms used herein. Commentary 09/09/02 We did a little cherry picking today, with the stocks singled out in the Weekend Alerts: NOC & STI. Both broke through their upper pennant lines (the breakout points listed in the table). Rather than hold for overnight I picked off a little intraday profit and will look for re-entry tomorrow. The Dow Jones ($INDU) is holding nicely above its sjh_Attractor that lies at 8361. and might be now forming a base. A little up yesterday, a little up today, etc is the way bull markets are made. The slope of the trendline the Dow is currently riding is about 30-degrees, which is a nice, sustainable angle. I'm looking for that line to be the "wall-of-worry" line for some time, and expect we will continue following it upward until something compels us to sell. On an intraday basis the last few days look like a novice scuba diver who can't quite get his buoyancy leveled off. First we sink a little from the day before, then we climb back up and add a little to the pile. Next day, we sink a little and then make the pile a little higher. If that holds true tomorrow, we should sink to 8475 in the morning, and then spend the rest of the day climbing to about 8650. QQQ The observation above translates to a move down to 23.00 on the QQQs, followed by a run upward for 23.66 afterward. Since 23.66 has been an sjh_Attractor for weeks, and weeks, I expect we should at least make it to that level. In addition, the action on the 15-minute chart over the past several days has formed in inverse Head-and-Shoulders pattern, and as Technicians we would expect the resolution to be to the upside, with the measured move hanging out around 24.36. Even more interestingly, that would be a nice shoulder for the very complex Head-and-Shoulders pattern we have been discussing for weeks in this column. So, a little upside-down H&S is inside a rightside-up H&S. Don't forget that in yesterday's commentary I expected that the QQQ would make a play for 26.63 with everyone else expecting it to continue on downward. You heard it here first. STI This stock, from the Weekend Alerts, broke above our target this morning (in fact the target was the low of the day) and so we bought. It spent the rest of the day climbing, and settled up a hefty 2.02 points from the entry. If it continues on upward tomorrow, we'll get back in for the ride up to 70. Be nimble, however, at 70 as 70.20 is the high from May 17, and it's best not to be greedy around new highs (unless they are broken resoundingly). ABX ABX was another beautiful call from the Weekend Alerts. In fact, it gapped open this morning, so we can expect that this is behavior seen in 3rd waves and we should make the run for 18, where the next attractor sits. Gold Yesterday we stated that we expected gold to move on upward to 326. It hit a high today of 325, only to close at 321.70. I expect it to continue the move to 326 tomorrow before (as we said yesterday) forming a 4th wave and backing off just a bit. UNH Yesterday we said to watch this one on a breakout of 87.95. It accomplished that today, and so I expect we are off to the races, moving toward the 91.50 mark I called yesterday. Watch for this to take 3 or 4 days. WMT Wal-Mart Stores also broke above its pennant formation (as called for in the Weekend Alerts) so we should be long for the move to 58.75, with a stop below at 50.87. Move your stop up as price moves up to capture profit if this one takes a nosedive.
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"The Sunny Side of the Street"

Commentary

QQQ

STI

ABX

Gold

UNH

WMT

Weekend Stock Alerts