SDLI	Faded in the morning back into its trading channel and then headed north creating a channel breakout at the 332.2 upper channel boundary for 38 points
VIGN	Traded through its 220.7 upper breakpoint for a 14 point gain
VERT	Triggered long trades three times at its 202.2 upper breakpoint boundary - once for 2 points, again for 2 points, and finally for almost 15 points
PUMA	Gapped well beyond its 121.4 upper breakpoint and remained there - no trade
PDLI	Initially gapped beyond its 193.8 upper breakpoint but then pulled back and later broke through the breakpoint boundary for 17 points
CKFR	Blew through its 89.3 upper breakpoint within the first half hour yielding 2 points
AXP	Reversed near its 140.3 upper breakpoint triggering reversal players short for 3 1/2 points
TMPW	Broke through its 126.1 upper breakpoint boundary for a long trade worth 9 points
KOPN	Plummetted through its 89.3 lower breakpoint boundary triggering shorts for 8 points

PHG	Gapped open and stayed there - no trade
GBLX	Gapped beyond the 49 downward momentum failure boundary, but then sold off - no trade
QLTI	Reversed its downward momentum and triggered longs at its 61.5 failure boundary for 4 1/2 points
BDX	Reversed exactly off its 28.6 continuation boundary and rallied through its 30 momentum failure boundary - the reversal was worth 2 points, the break through 30 produced fractional gains
DCLK	Continued its downward momentum by falling sharply through its 83.6 continuation boundary for 7 points
YHOO	Reversed off its 153.3 downward momentum continuation boundary and charged through its 157.3 failure (momentum reversal) boundary - the break through 157.3 was worth about 13 points, taking the reversal off 153 was worth an extra 4 points
EBAY	Gapped above its momentum failure boundary and sharply reversed its previous course - unfortunately, the gap open produced no proper trade entry

AFFX	Gyrated wildly, but nevertheless gave good reversal off its 258.5 lower channel boundary twice - once for 13 points and again for 20 points.  If you didn't take the reversals, but rather waited for the 273.7 upper breakpoint breach - you were rewarded with 4 1/2 points
SDLI	Faded in the morning back into its trading channel and then headed north creating a channel breakout at the 332.2 upper channel boundary for 38 points
NSOL	Popped through its 285.4 upper breakpoint for 17 points
JDSU	Gave a long trigger at the 218.9 upper breakpoint boundary good for 19 points
CEPH	Put in a wild performance first triggering shorts at the 58.1 lower channel boundary for 5 points and then rebounding back into its channel
AXTI	Triggered longs at the 40.4 upper channel boundary for 1 point
ENZN	Opened at the 55.1 upper channel boundary and triggered longs good for 4 1/2 points - a subsequent selloff back into its trading channel resulted in yet another long trade at the 55.1 boundary for another 2 points
MLNM	Broke through its 254.9 upper channel boundary for 17 points
HGSI	Traded through its 180.4 upper channel boundary three times - once for 7 points, again for 2 points, and finally for 17 points
CREE	Sold off through its 164.5 lower channel boundary for 9 points
BBH	Gapped at the open and pulled back to less than a point from the upper channel boundary - if you risked this trade (against our normal trading rules) your risk was rewarded with 13 points - if however you waited for the breach of the 197.4 upper breakpoint (as you should have) you still made a nice 8 points gain

ADRX	Initially faded but then rallied through its 85.4 envelope continuation boundary for a long trade worth 7 points
DLTR	Reversed and traded through its 34.2 failure/reversal boundary for 1 1/2 points
TTEC	Gapped beyond its envelope continuation boundary - no trade
PUMA	Gapped well beyond its envelope continuation boundary - no trade
SEBL	Traded through tis 122.4 envelope continuation boundary for 8 points
T	Remained in a relatively tight range within its envelope boundaries - no trade

Of interest to daytraders, from the Trading Index - MLNM (17 points), PDLI (17 points), TERN (2 points on breakdown, 20 points on directional), RMBS (10 points), CMDX (43 points), CRA (15 points)

Knowing where to expect, and capitalizing on, reversals is a key profit making tool in the daytrader's arsenal.

Whipsaws can happen in choppy markets and traders should always step away from the trade or give themselves more distance from the original entry boundary when a reversal occurs (such as adding one point to the reversal side of the trade entry boundary) to reduce the effect.  Losses are a fact of life, but they can be easily kept to a minimum while maximizing your profits with proper stop management.

Recognizing that a mere one point per day profit when trading 500 shares (or 5 option contracts) is $120,000 per year, you  begin to understand the potential for profit in applying Trade Prospector's information.

Copyright 2000, by Third Millennium Trading.  All rights reserved.  This information is proprietary and reserved for the personal use of Trade Prospector users and registrants.  No other use is permitted without the express authorization of Third Millennium Trading.

Disclaimer: Third Millennium Trading does not recommend the purchase or short sale of any stocks.  Trading should be based on your own understanding of market conditions, price patterns and risk.  The information presented here is designed to contribute to your understanding. Controlling risk through the use of protective stops is critical (more).