Reagrding AOL , read this:
Closing Bell
by IntelligentSpeculator.com
This is a review of trading for Friday, June 11. The
Producer Price Index figures were released today.
They were in line with expectations. However, with
the strong downward momentum in bonds in place, no
surprising good news and the general consensus that
a rate hike is coming at the end of this month after the
scheduled meeting of the Federal Open Market
Committee, sellers just kept selling.
This is a review of trading for Friday, June 11.
The Producer Price Index figures were released today. They were in line with
expectations. However, with the strong downward momentum in bonds in place, no
surprising good news and the general consensus that a rate hike is coming at the end of
this month after the scheduled meeting of the Federal Open Market Committee, sellers
just kept selling.
The September S&P futures contract opened to test the gap overhead in the 132450 to
132900 area. It made a morning high of 1327, could go up no more and basically traded
down all day before a bounce going into the close. It broke support at the top of last
week's trading range around 1320, and traded through Thurday's low. The lower
boundary of support is in the 1295 area with key support at 129050. We fully expect this
level to be tested next week.
Next week will be a long one, with a slew of economic statistics coming out midweek.
Friday will be triple witching, with the expiration of futures, options and options on
futures.
We are going to look at four stocks today. As discussed, Yahoo had formed a bear flag
over the past couple of weeks and on Friday it broke support at $140 on increased
volume. The target for this down move will be a test of the recent low at $120.
Broadcom is still in a test of top position and if it fails to gain momentum on this breakout
right here, many traders will be selling it on the assumption that it has failed at the high.
CMGI is a classic broken and is near the first level of support. It tried to bounce this
week, but like the rest of the market, it found sellers at the 20-day exponential moving
average overhead. It will be interesting to see if it can hold at the $80 level and rebound
from there. If not, the full measurement of the triangle formation gives a target of $60.
America Online has the same broken triangle formation as CMGI. Support is seen at
$90, with a measured target of $64. Please note that YHOO, CMGI and AOL are all
trading under their respective 20- and 50-day moving averages and we would expect any
bounce to find resistance in those areas overhead.
Chart may be viewed at: iqc.com
(Voluntary Disclosure: Position- Long; LT Rating- Strong Buy) |
