Responses
I don't have an after hour indication, but will know what the preopen numbers are running on monday about 7. If its at 24 now, Then I will probably set a market buy for whatever its at if the indication is at that or lower for Monday morning. CPQ will probably run just like INTC did on its afterhours announcement. The gap will be selling well below the ask and the stock should rise during the day. It will probably generate about 25 million shares and drive a down open and another drop in the NASDAQ. DELL's 2:1 split on Monday should also prove an interesting play. It will either rocket from the competition's problems, or suffer a deprssed trade - one the reason for CPQ's $1 billion sales shortfall is corporate users waiting for MS Windows NT version 5 (late as usual) and putting off high end workstation buys. DELL is not as heavily dependent on those sales, but it may affect the market's demeanor on the split. DELL was overpriced anyway, but that doesn't seem to bother anyone. I'll think about it and repost something Sunday night.
ASND should also move up regardless what the market does Monday due o the upgrade.
TXN and PMCS - now there is an intresting situation. Ignoring the intraday charts for a moment, I was looking at the daily's and thinking about the chart pattern comment. At first I noticed the ascending pennant, and then it struck me that both were forming a large cup and handle. That, threaders, is a rare and wonderful pattern that precedes a major jump up. There was an uncharacteristic blip two months ago for one of them, but I traced that to some news. I will look at it in more detail this weekend, but I may set limit buys for them afer I see what the market opens at. Right now, assuming it would be a regular day I would set PMCS at 35 and TXN at 54. But that will get refined at open, sdo don't go by those numbers.
My view of the market response is that the peple are looking for reasons to sell/short/unload, and the mm's are obliging them. The numbers are too high, and the January housing starts were up more due to better weather than economic strength. Jobless rise made national news, but I don't see the inventoies going down accordingly or the Purchasing Manager's outlook improving significantly to justify it continuing. The folks I read and respect are still giving it the 'not to hot, not to cold' goldilocks scenario, but they are now saying all the risk is to the upside. Some mind fodder for the weekend I guess.
Be safe gang.
lastshadow |
