Some interesting technical questions:
Just took a look at the charts of Dell, EMC, Microsoft, Intel, MCI/Worldcom, Gateway, Cisco....
For the most part all hit 3 month (or close) bottoms last week, surged strongly thru Monday, and have retraced some of that up movement the last 3 trading days..
Very interesting: For most, they have retraced (down) between 40-50% of the 5 days up move from last week powerful up moves.....
I believe Intel was holding up better (down less than 40% of the move, but Microsoft was down more (about 75% of the move up)..but, overall, pretty consistent up, and then down pattern...
What, to me, is interesting is this: If these stocks rally Fri., or latest Monday (in tandem)...up and thru Monday's highs...we will have made a beautiful Big Leg UP (A), close to 50% retracement (B), and then thru the old "A" high....
Now, again, I am not a technician, but I believe that would be pretty bullish indeed...
In fact, it looks like these stocks could go down even a bit further, (Dell back to 35 1/2 or so) and if they bounce powerfully, then it is a good sign....If Dell get back to 35 1/2, it will be a bit white-knuckle time...because Dell will need to hold (for technicians) but if it does, then that would be a triple-bottom, which, I believe, most technicians see as a powerful springboard for up moves...(no going thru a triple-bottom)...because, supposedly, there are no quadruple bottom (right?)...
But, if we see an up move, in sync, in the top 6/7 stocks and that continues for a few days...that will be a nice move, indeed..and that the last few days will surely be seen as a healthy pause (and nothing else)...and the weakness the last few days was actually healthy (and not a sign of weakness...)
SO...the next few days will be telling!
Any comments thread? |
