We are forming a rectangle from the 15th through today thus far. Rectangles imply a continuation of the previous trend which was down from the high of the 13th. With us both having buy signals, I am hoping this rectangle will be negated to the upside and we will get a break out as shorts cover but it is something to keep an eye on.
EDIT - I should have said a continuation from the high of the 8th, not the 13th which was a secondary lower high in the down trend I was looking at the chart too zoomed in.
From Briefing....
15:04 ET Avnet (AVT) 21.68 +0.23 (halted): -- Update -- Company expects a 25%-30% sequential decline in sales (consensus -10%) and EPS of breakeven to slightly positive (consensus $0.42). Firm seeing some stability in its computer businesses and incoming component orders appear to be picking up, but cautions that it is too early to anticipate a turn in the environment.
15:00 ET Cisco Systems (CSCO) 16.27 -0.37: Hearing from sources at Lehman that the firm made cautious comments on CSCO; said that enterprise customers have been pushing out orders/projects to Aug/Sep, that pricing pressure remains significant, and that a global financial services customer that had been Cisco-centric is taking advantage of pricing to buy some EXTR and FDRY switches.
14:38 ET Tyco Intl (TYC) 52.92 -1.22 (-2.2%): -- Update -- Merrill Lynch reiterating its opinion that Tyco will not make another bid for Honeywell (HON); would discount concerns about any interest that Tyco may have in Honeywell; firm also comfortable with TYC's ability to achieve Q3 and full yr numbers; views recent price weakness as a buying opportunity.
14:36 ET Avnet (AVT) 21.68 +0.23: Stock halted; news pending. There has been widespread speculation of late that AVT, KEM, and VSH might all have to take down numbers for the qtr.
14:30 ET Nasdaq Composite : -- Technical -- Resolve of short sellers will be tested for the first time in six sessions. Index is making its first significant late day move over that time span and currently testing very near term resistance in the 2,000 area. The Dow is assisting late day Nasdaq strength as it appears to be holding support at its 200-day moving average just over 10,600.
14:20 ET Qwest Comms (Q) 29.58 -1.69: -- Update -- Stock catching a bid as Q conference call continues; CEO Nacchio vehemently defends Qwest against the accounting issues raised by Morgan Stanley.
By Lee_Lichterman on Wednesday, June 20, 2001 - 02:53 pm: Edit
Covered my short call at about break even on this most recent intra day pullback after the short rally. Thus far, support has held, we both have a buy signal on, and I am seeing a imperfect invertred H&S on teh intra day NQ chart. I still don't like the TRIN being high and the TICK shows they are trying to force it up but a lot of bad news has been streaming out the last few days and they may need to take this higher to get enough momentum to break it below the support that has held teh last 3 attempts at down.
I am in no way bullish but just didn't like the risk to reward here of being short. Don't get me wrong, I will likely put this short back on very very quickly but think I may be able to do so from a higher level over the next couple days...... -gulp - At least I hope so -ggggg-
Good Luck,
Lee |
