Frank,
QCOM started the day near its YTD low.
Issue rapidly rose to 63 on an anticipated recovery rally.
But issue fell from 63 to close near session low for a 7% loss from session high.
It closed at the YTD low close (I think).
I believe this stuff is more significant (grave) than the drops seen in other issues you mention, since they are still well off their lows from March/April correction--those issues are retracing; QCOM, in contrast, is just declining.
could just as easily signal a strong bottom as the beginning of a new step down
It is anybody's guess where the stock goes from here, but in my mind, a strong bottom is one where you see a lot of volume and the stock rallies from there. QCOM rallied twice off of 60 on volume. This time, volume went away, and those hoping for a rally (inc. me) got the hell outta Dodge.
Good luck, but I think QCOM needs a real event to get the market interested again. Even if (when) that happens, I don't know how long traders will stick around until we see a better earnings picture (sequential momentum, that is). The most recent rally off 60 (based on a few PRs from QCOM about "we have great IPR on WCDMA" blah blah blah and an announcement that a bunch of Chinese makers you've never heard of will make prototypes--in other words, the kind of news that's good for a trading rally, but not much more [in contrast to something like an omnibus NOK deal, which would have some staying power]) and the subsequent denouement are pretty emblematic of the trading range quagmire, IMO. |
