First, I would stay away from VectorVest. It's a mechanical device that is clever, but can't do fundamentals, market sentiment, etc. However, VV and I agree at the moment. The trend is down on QNTM, unfortunately. Further, the negative sentiment on DD is not going to go away overnight. Then there is the uncertainty over how far up the DD ladder the pricing pressure will go. Will Fujitsu start price cutting in the 3-4GB range? We don't know yet. I expect the stock to trade in the 26-30 range for the near term. If we get a sustained, strong tech rally in December, and QNTM hasn't broken below 25-26, then it's sure possible QNTM maybe could get to 35 in December. Meanwhile, I still am not ruling out QNTM slipping below 25, and that would diminish chances of going back to 35 near term.
The problem for tech stocks is that right now they are leaderless. The box makers have had huge runs this year already, but at the moment they are the most likely candidates to resume leadership. If Dell can post really good earnings, that will certainly help. If not, then we're still leaderless.
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