It's not polite to say I told you so, but Friday's action tends to confirm what I've been seeing in the NASDAQ lately. A new source of concern comes from looking at the NASDAQ and the MACD analysis after Friday's close.
First, the NASDAQ broke through its 200-day MA for the first time since April. If it breaks through the psychological 1500 barrier and extends this fall below the 200MA, it could easily go down another 40 - 60 points. INTC earnings on Tuesday will have a lot to do with whether this happens.
Second, despite the above, the MACD lines above the median STILL HAVEN'T CROSSED. This could foreshadow another move up and a confirmation that they won't cross. On the other hand, another move down with a firm line cross means we could be in for a further drop below the old 1500 resistance.
Enough bad news. If the sun comes out on Monday and the NASDAQ futures are up before the open, my best picks for short-term gains are AMTD, AMZN, ATLPA, CGN and maybe WCII if it's not too overbought already. On the short side, a down day would make shorting CMOS, SEBL, ITWO, PMTC, TSS and ZONA attractive.
If you are shorting, watch out for a down open and a whiplash reversal during the day. Overall this week is not for the faint of heart.
Good luck all.
P.S. I haven't dug into PUMA or NETA in detail but their high PE's would put me off for the moment. |
