Welcome to Momentum Trends! Here, you will learn how to interpret technical trading formations/patterns and signals to make more informed decisions in the stock market. The model described below helps you to determine when stocks, indexes and sector-groups are being accumulated (bought) or distributed (sold). The Momentum Trends' approach enables you to analyze what is happening to the price of a stock/index now and make more reliable projection (see Technical Trading Signals - column 8) of what may happen in the future. Being able to detect whether a stock/index is starting to rise or decline is the first step toward making profitable decisions. A stock/index is rising if it is in an uptrend, and is declining if it is in a downtrend. Therefore, our mission is to identify the primary trend and then follow it. Please, consult column 3 (Previous week trend) and column 4 (Current Trend). Furthermore, it is important to identify the trading formation/pattern. Being able to determine successfully the overall trading formation/pattern is the second step towards making profitable decisions. If you are not familiar with the most common trading formations/patterns, please go to our Technical Analysis Education Section. Once we've determined the trend and trading formation/pattern, the third step is to watch support and resistance levels (columns 6 and 7) in order to confirm a current trend or identify that a trend/trading formation is reversed. Support and resistance levels involve both price and volume and usually indicate areas where it is prudent to open new positions or close existing positions. 

Company/ Index

Symbol

Previous Week Trend

Current Trend

Trading Formation

Support

Resistance

Technical Trading Signal

Airline Sector

AMR Corp.

AMR

Ascending Triangle

26.50

29.70

Buy*

Continental
Airlines

CAL

Symmetrical Triangle

33.44

39.64

Buy

Southwest Air  

LUV

Rectangle

20.00

22.00

Buy

UAL Corp.

UAL

Double Bottom

14.00

17.24

Buy

Airline Index

XAL

Rectangle

99.01

116.97

Buy

Oil Sector

Chevron Texaco

CVX

Double Bottom

85.60

89.18

Buy

Forest Oil

FST

Triple Bottom

25.85

27.00

Buy

Murphy Oil Co.

MUR

Rectangle

84.00

87.85

Buy

Schlumberger

SLB

Ascending Triangle

59.87

62.00

Buy

Oil Index

XOI

Ascending Triangle

525.00

548.45

Buy

Retail Sector

Best Buy Co. 

BBY

Rectangle

65.25

70.00

Sell

Costco Wholesale Co

COST

Double Top

40.00

42.00

Sell

JC Penney Co

JCP

Descending Triangle

18.64

21.00

Sell

Pier 1 Imports

PIR

Double Bottom

18.84

21.21

Buy

Retail Index

RLX

Rectangle

950.00

966.66

Buy

Financial-Banking Sector

Bank of America

BAC

Double Bottom

62.00

62.00

Buy

Bank of New York Co.

BK

Double Bottom

39.50

42.00

Buy

Bank One

ONE

Double Bottom

37.35

40.00

Buy

Wells Fargo

WFC

Rectangle

47.50

51.71

Buy

Banking Index

BKX

Double Bottom

860.00

875.37

Buy

Pharmaceutical & Biotechnology Sector

Glaxo SmithKline

GSK

Double Top

47.00

51.00

Sell

Icos Corp. 

ICOS

Rectangle

44.00

48.61

Buy

Myriad Genetics

MYGN

Rectangle

35.00

40.00

Buy

Protein Design Labs

PDLI

Double Bottom

16.00

24.00

Buy

Pharm. Holdrs Tr. Index 

PPH

Double Bottom

99.23

100.60

Buy

Technology Sector

EMC Corp.

EMC

Double Top

11.00

12.00

Sell

Micron Tech.

MU

Rectangle

32.00

39.45

Sell

Qualcomm 

QCOM

Double Top

35.00

40.00

Sell

Sun Microsys

SUNW

Double Top

7.80

8.75

Sell

Tech. SPDRs

XLK

Double Top

20.00

23.00

Sell

Milo's Watch List

Gold/Silver Index

XAU

Rectangle

62.89

66.00

Sell

Internet Hldrs

HHH

Double Bottom

32.00

36.00

Buy

Nasdaq 100 

QQQ

Descending Triangle

35.00

38.00

Sell

Realty Index

ICF

Rounding- Bottom

86.50

90.04

Buy

SPDRs  Index

SPY

Descending Triangle

113.00

118.00

Sell

Wireless Hlds

WMH

Double Top

44.60

48.00

Sell

CMGI Inc.

CMGI

Descending Triangle

1.25

1.68

Sell

Dollar Thrifty

DTG

Ascending Triangle

17.65

20.00

Buy

Lyon W Home

WLS

Double Top

18.30

22.00

Sell

Covad Co.

COVD

Double Bottom

1.50

2.00

Buy

* "Buy" and "Sell" technical trading signals  are provided only as an educational tool, intended to illustrate Technical Analysis principles of trading. Trading in securities is a high-risk venture, which could result in a loss and should not be undertaken without serious independent study. Neither EquityInvest.com nor its employees or affiliates recommends any security for purchase or sale or specific approach to invest in securities. Past performance is not a guarantee for future results. EquityInvest.com and its employees or affiliates may have positions in some of the securities mentioned on this web site, and is under no obligation to disclose the amount of the position or when it was acquired.

Last Update March 04, 2002                        Next Update March 11, 2002