Good evening, Judy.
>> I shall look for declining volume as we approach previous lows.
If we dip below previous lows, watch for very low volume compared
to the previous fall. On each rebound, look for breadth and volume
greater than the previous fall. Until we see this, the market will
continue down. <<
Let me do some mumbo jumbo. Looking at indices and big-name tech
stocks, we may see either double bottom reversal or double bottom
breakout. The latter will bring some margin calls...not a pretty
picture. Yet, new shorts may also get squeezed here. The way
things are going, we will get to the technically oversold point
when Fed meets on Wed. So I am leaning to a relief rally to form
double bottom. Then let's hope HWP and AMAT bring some good news.
Now let's go through some quality stocks technically:
Stocks above or slightly below 50-day emas:
ADBE, AMGN, ASYT, CA, CDG, CIEN, CSCO, CTEC, DD, DO, EMC, GE, GLX,
HAL, IMNX, IOM, HAL, LOR, LU, MSFT, NE, NXTL, ORCL, PAIR, PFE, RIG
SYMC, TRV, WLA ... those stocks should be good for a trade
in a snap-back rally because I consider they are still
technically intact. No surprise to see oil-related and drug
co's, but also notice those software names in there.
Stocks around 200emas....I like these stocks best because
they give good mid-term returns if picked carefully. Money
flow could help a great deal in distinguishing winners and
potential DSTs:
BAY, CAT, CCI, DD (emas are converging), HWP, NN, TLAB,
ORCL (emas are converging), ORFR.
Stocks between 50 and 200-day emas: flippers?
DELL, TXN ...
A long list of stocks deep under water (lower than 200ema).
Won't hurt to have a few turtles:
AMAT, APM, ATML, COMS, CPQ, CS, CYMI, EGLS, INTC, KLAC, KLIC,
LRCX, LSI, MOT, RMBS, SUNW, QNTM, SEG, WDC, WFR.
Some stocks could form double bottom if previous lows hold:
AMAT, KLAC, KLIC, INTC, SUNW, MOT, LRCX.
I left the market around the time it topped so the bearish
side of me will take time to sink in. That may be the time to
go long. TT, you listen? :) |
