Greg: A gap exists on the NAZ charts at around 2850, near the breakout point of the huge move to 5000. Theoretically, this gap should be filled and the breakout should be tested. I see it going somewhat below that breakout point and doing a V bottom back to the resistance of 3400-3600, at which time another wicked round of distribution/selling will occur. This is all JMHO and I could be way off base. But gaps on major average charts tend to be filled. If that is the case, you may see JDSU trade down into the 50's to 60's like you're looking for.
** OT ** The real scary thing is QCOM has a big gap at $60/share or $240 pre-split. Remember it wasn't that long ago we were thrilled to see QCOM go above $200 pre-split - that was a major event because of the struggle to get over that hurdle. Based upon QCOM's revenues which will be greatly reduced because of the handset sale (although margins will be greatly enhanced), and somewhat flat to slightly above earnings, QCOM could get decimated. That long base that was built over the last few months is now resistance, and in hindsight, a lot of distribution went on during that supposedly base-building period. I think the QCOM stock appreciation story over the next several months or more, is over. Sure we'll see bouts of upward thrusts only to be met by more wicked selling by those who didn't get out and are now given a 2nd chance. And when you think about that, why would anyone be given a 2nd chance - maybe this time it's different even though the talking heads are saying to get ready to buy this coming week. F%%k them is what I say. The China story is already in the stock and there are so many other issues to be resolved that QCOM might have seen its best days last year for quite some time. BWDIK.
My 5 favorite stocks at this time are SUNW, ORCL, INTC, FDRY & SDLI. I like SDLI so much more than JDSU it's not even close. Smaller cap stock growing earnings much faster not burdened by absorbing large acquisitions and selling higher margined items. As a matter of fact, SDLI bounced $26 off its lows on Friday and didn't even come close to revisiting them. That being said, if my above scenario of filling the NAZ gap of 2850 comes to be, none of the above picks will be spared but those are the ones I would enter first. Good luck all - we're all going to need it. Can you spell the word P A I N.
jmanvegas |
