Jane,
<<<"Charts, TA, FA, resistance levels, trends, etc... mean little in this market">>>
I hate to disagree with you (respectfully) considering this is my first post on this thread, but a quick look at a long term chart (monthly) for stocks like RNWK, CMGI and especially AOL would point to one of the most obvious of reversal patterns known to technicians - Head and should patterns of the most massive size. Those were just some of the clues that techs were in trouble. Of course the recent break in their stock prices is obvious now, but lets take a look at some of the high flyers YET to show signs of weakness. Take a look at PMCS's chart on a WEEKLY basis - what do you see? While your at it also take a peak at BRCM, same time frame. Close observations to what stock prices do on a multi-time frame will often show what the smart money has in store for prices. Both PMCS and BRCM have formed obvious H&S for this time frame. Although this pattern is not 100%, considering this current market environment I would say that the smart money is distributing their position in these co's. The breakdown in their prices should show itself over the next couple of weeks.
I could be wrong, but at least the charts are giving me a "heads up" to what might be coming.
Good trading,
SO |
