Happy New Year all! I wanted to stop by and very quickly point out some observations on the charts. Just finished reading Barron's. Good luck trying to Navigate the markets after reading the best and the brightest. Let's just say that the pros agreed to disagree. I know many are looking for a January bounce for the beaten Compx. If fact the double bottom (possible!!!)for the SOX has gotten much attention all over SI to include many of the technicians on CNBC. I would agree that even on a very long term trend line the SOX is sitting right on key support as we speak. Stocks like KLAC and XLNX have held up well over the past couple of weeks. However, with many of these stocks sitting at such critical points on the charts Fridays action alone was not a good sign. XLNX, ALTR, INTC, and AMD either broke ugly on the last trading day of the year or in the case of INTC are continuing to break into new lows. Now I ask those out there that believe that the SOX is ready for a January bounce how far this index can run without the likes of an INTC or AMD to lead the charge. The bottom line is this upcoming week should answer our questions whether this next leg is indeed down rather than up. Looking at the rest of the tech area I am still seeing stocks across the board with very bearish, ugly patterns. RIMM, ARBA, CMRC, AKAM, SUNW, ORCL, INKT. Look at AMGN, IDPH, IMGN, VRTX and OSIP in the medical biotech areas. These stocks have had big runs. Topping pattern have been developing. Besides INTC, look at the daily chart for SUNW. Where's the bottoming action? What about ORCL?? Look at the broadening action of the past couple of weeks. Look at BEAS one of the stars of 2000, January will be a make or break month for the future direction of this company. What about RMBS? This coming week will be critical for this stock. AMZN?? Money in the bank this stock will see lower lows the first month of the year.
My point is that stocks need a platform of stability to rise to new heights. Something that is severly lacking on most charts today. Like I said we have "do or die" situations across the board. Failure will definitely cause stocks to seek out lower lows. If in fact this stocks rise to the occasion, I would watch the character of trading in these stocks as they push upward, i.e., is it broad based or are they moving in a group.
Good luck trading and have a healthy and happy New Year!
SO |
