FWIW.........'kensey' has recommended MSFT (Long)'kensey' said:
Microsoft (MSFT) shucked the red trending bar that
has hovered since mid April on big volume on Friday.
Yes, the stochastic lines have shot through the
overbought marker but Microsoft has an excellenttrack record in the green.
Technology has been strong of late and it will
become apparent in the next few days whether
the rally is going to stick as many of the
leading stocks are at important inflexion points.
EMC Corp (EMC) also shucked the red trending bar
on good volume. Similar configuration there aswith Microsoft.
Sun Micro (SUNW) also shucking the red. Note that
the last time SUNW went green, it fell back to retest
support. But this attempt looks better than the knee
jerk back in May as evidenced by the stochastic lines.
Sure they bumped and hopped, but the current rise issteadier and less volatile.
Lucent (LU) - one to watch closely. Pressing against
resistance at 63 for the 5th time in two months - a
model of range bound trade. Busting this range on the
upside would be emboldening. Cisco (CSCO) is one to
watch for the same reason - hitting resistance
at 120 for the 5th time in two months. Crossing
this price level would be very bullish for technology.
If you think the recent technology rebound is bunk,short them both.
Quantum (QNTM) took out long standing resistance at 22
and closed at the high end of intraday trade on
Friday on big, exploding, love you long time volume.
Maybe a small trade by more than likely watchlist
fodder to await the fade as this guy tends to pull
down and head back under water after periscopingout of a prior range.
Worldcom (WCOM) has succeeded in doing some range
busting - crossing resistance at 94 after 4 prior
attempts on accelerating volume (camera pans to
the lengthening stack of blue bars on the VIG(volume indicator graph).
Online brokers - limp across the boards. In fact,
it's not a bad time to short Schwab .... The
announcement by Merril that it is entering the online
space caused the group to sell off hard. They have not
recoved and here it is weeks later. Which means the threat
is real. Or, perceived as real in the minds of the majority
(who count most) and that the Merril online advent is
going to 'fundamentally change things' (such insightful
words I've read in several reports) and impact the
rate of growth of the existing players 'in some way'.
Sometimes I wished my dog ate paper. All of which
confirms to me (once again) that the internet space
continues to be poorly understood and that the
complexities of putting up a website to handle immense
amounts of traffic and transactional volumes
is being discounted. And every time I see the mugs
of these guys in the WSJ I have a difficult time
believing that they will get it right. I'll just bet
stud web programmer types are beating down their door.
Then again, most rich old money folk I know has a
Merrill account. Which doesn't mean that much as not
many of them trade individually. The gun slinging
active trader Merril crowd? Please stand up to be
counted. The reality is that the market has been
populated by an empowered new generation of individual
investor/trader to whom the name 'Merrill' consists of
an association with the culture club arrogance that
produced all those years of pronouncements that
trading is 'too dangerous' for the individual
investor that best be spoon fed. Generational
issues, branding issues, and logistics abound.
Advanced Radio Telecom (ARTT) - classic stochastic
overbought buy signal following early June volume
explosion. But I'm hesitant as I'm not sure what
all the high volume hoopla was about back in earlyJune.
Atmel (ATML) looks good (note stochastic dive bomb).
Octane trade followed by a rest on the 13-day EMA.
Check out how the MACD lines of Gemstar (GMST) were
steadily declining while prices were steadily rising
for the entire month of May. If you know why, thenyou understand MACD.
Laser Center (LZRC) - good to go? Bounce off 50-day
EMA? So far my guess is no - the top and then the
fade to the 50 took too long to develop. Indicates the
stock is priced and moves horizontal for the next6 to 8 weeks.
COX Communications (COX) - bouncing off strong support
at 32. This line held in mid Feb and mid April and
here we are here again in mid June to maintain 2month periodicity.
Doubleclick (DCLK) - short candidate. Note the sub13-day EMA hugging.
Morgain Stanley (MWD) - short candidate soon but notquite yet. And maybe not.
Fannie (FNM) - time to dump out. That red bar has teeth.
Then again, the odds are called the odds for a reason.
That fish is belly up and glazed.kensey
See the annotated graph of this recommendation at:
clearstation.com
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