Comments from Gary Smith from TSC. Could not post his charts but will give his comments on the charts from a TA perspective
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Leave it to Intel (INTC:Nasdaq - news - boards) to so rudely interrupt our Olympic discussion!
But interrupt it it did, so I thought I'd devote this column specifically to the Nasdaq, Intel itself and Cisco (CSCO:Nasdaq - news - boards). As they go, so goes everything else, I suppose.
Now remember, I'm putting this column together after Intel announced , but before the market opens. By all accounts, it looks to be ugly from the get-go, but besides that, I know as much as you do. So, here are a few charts and a few suggestions.
Good luck today. It's going to be rough no matter what.
From Gary Smith:
The Naz: for short termers, if the Naz closes below 3700, then we probably will test 3100. I'd probably give up on my techs long and go short on the QQQ's. But, until proven otherwise, we are still in a trading range, so wait til the close.
AND DON'T BE SWAYED BY THE OPEN.
The Naz: for long termers, we could still drop to 3100 and still be in an uptrend (one the weekly chart). Could the Naz drop below 3100, possible but not likely....too many people on the sidelines waiting to buy.
Intel: for short termers, any close below 50 and Intel makes a good short to $40 (old breakout support).
Intel: for long termers, it will be tempting to buy down to $45 but any drop below $45 is dangerous because a long term uptrend (on the weekly chart) will have been broken.
CSCO: for short termers, there are three key areas; if CSCO close below $58, it is broken and its probably a good short to $50,a nd if it breaks that its a good short to $37.
CSCO: for long termers, this will probably test your buy and hold mantra I would think. But, the fact is CSCO is still in an uptrend as long as it stays above $30. In fact if you are a believer, you can buy all the way down to that level.
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That's pretty much the words of G. Smith....I have followed him for 2 years and he's usually pretty accurate. He never looks at fundamentals.....just the TA.
I think its real important not to panic.....even when the sh*t hits the fan, and it will today.
Good luck. |
