Thanks to everyone for their postings. They are very helpful to me.
The following is (1) a technical analysis and a (2) Wall Street assessment contribution to the intermediate term bullish camp.
(1) The resistance battleground today was at $52.50 and the support battleground was at about $52.20. At this point in time, the bulls are winning.
Overall, a drop to 50 in this downmove makes sense, especially since so little time was spent there. Its a round number. There were major turnups in January and May, 2000 at $50.97, $48.97, and $47.50. Its 25% below the 20 day moving average.
EMC's action today is echoed by the action in the NDX, SOXX and many other indexes.
(2) Mostly though, in the convoluted way Wall Street works, I have found that temporary bottoms are sometimes put in just when the news gets terrible. Today seems to qualify with negative items from EMLX, CPQ, a negative item on DRAM prices, and the CMS semiconductor stocks being downgraded. I found found this to especially be the case when it is likely that news in the next days may be good: Greenspan, company commentaries at tech conferences, and earnings reports from companies that may be making it in spite of the economic challenges.
That EMC's intraday pattern can be interpreted as positive at this point in time, is encouraging to me. The situation for EMLX, MCDT, VRTS and BRCD is more challenging. On the other side, QLGC is almost 8 points off its low (but down substantially) and NTAP is positive.
I am in for 4 figure shares at about 52.92 and hope to be substantially increasing my position in the coming days. |
