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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: dennis michael patterson who wrote (13503)	7/31/1998 3:39:00 AM
From: Robert Graham	Read Replies (1) \| Respond to of 42787

I did not have much time to look at the charts. So here is a quick rundown. YHOO is up against the bottom of resistance range starting at 182. This stock has been in a downtrend that has not been compramised by today's price action.MACD and Stochs is is sell mode. There is a possibility that the bounce can continue tomorrow, but I am a bit skeptical about this. The volume did validate the move up today. The stock is currently right above its 20 day EMA. The BBs have collapsed and the top BB is not far above current position. The intraday chart shows a bounce at 171 and a break through intraday resistance that it pulled back to touch before continuing its uptrend. This is a sign of a strong move up that is likely to continue at least into tomorrow. Next intraday resistance is at 186 and 191. The resistance at 186 is significant because I think this is also represents the end of the resistance range on the daily chart. This stock is now encountering serious resistance which can limit its move up. AMZN is worse technical shape. Its downtrend has been in place for a longer period of time which has not been broken today. The stock is right below its 20 day EMA which can provide resistance. We did get the bounce that was anticipated by the chart, but I am skeptical that this stock is good for a continued move up from here. However, there is not the resistance in front of it that YHOO has. Still there is strong intraday resistance at 116. There is a triangle that was formed and the price is at its apex where it is encountering selling. There are additional intraday resistances at about 124 and 126. WCOM bounced starting yesterday which was no big surprise by the charts. Today it followed through and closed at its high. Now this part is a little surprising in its follow through. WCOM is now above its 20 day EMA. This price action is likely to continue tomorrow. But it is running into some resistance at this point. It is coming up against intraday resistance at 55, and there is also resistance at 55 7/8. There is intraday support at 53 1/4 and 52 3/8. This stock will not be able to go straight up from here, but it may be in a good position to recover and eventually challenge its high at about 58. This depends on the market since WCOM moves with the market. CMGI bounced off of its 50 day EMA. Considering what happened in the market, this is no big surprise either. I ran across someone who is popular on SI who thinks this chart was ready for a trend reversal, which is obviously different than a bounce. Looking at the technicals of this stock, I do believe they need some help reading charts. It appears every time they see a 50 day EMA with good downward price movement they think trend reversal. I have to admit that the graph did look good for a bounce which did happen. But a trend reversal?? Simple no understanding of the technicals of the stock is being demonstrated by this person. It shows that it is important to be careful who you listen to here at SI. For that matter, if the market did notmoveup today, I do not think you would of found many of these stocks bouncing at all. CMGI is still below its 20 day EMA with its steep downtrend intact. Considering the chart pattern, I would expect the volume to validate the bounce much better than it did. The 20 day EMA is downtrending which will offer more resistance to the price of the stock. The 50 day EMA is flat. The price movement will run into additional resistance on the daily chart at about 75. Looking at the intraday chart, it gapped up when it opened at 67 3/4 and quickly closed its gap and then shot past its gap to encounter intraday resistance at 69. This is where it has stayed for the rest of the day even when the NASDAQ and key stocks shot up further at the end of the day. Instead, right near the end of the day saw selling come in. Now does this sound like an imminent trend reversal to you?? A technically healthy pick?? Look at AMZN and YHOO for stocks demonstrating buying interest. I think CMGI will remain in the crapper for a period of time. At best it will end its downtrend and consolidate. Do not let the volatility you may see fool you. That would be only for the day trader to play. But I think the smart day traders will be playing other stocks tomorrow. MSFT has been in a consolidation pattern where it recently dipped below its 20 day EMA to pop back above it today where it will be encountering some resistance. The technicals on this stock do not look pretty for the type of stock it has been. Next resistance on the daily chart is 115 to 118. MSFT opened and moved up to meet intraday resistance that it faded from, and at the end of the day additional buying came in to take it above this resistance at 112. Next intraday resistances are at 113 1/4, 114 1/2, and about 117. So 117 should provide good resistance to price movement. Considering its performance today, I am not expecting this stock to make any new highs soon. INTC closed right next to its high which is the recent high it made on its breakout before its pull back. Volume not validating the move up from its pullback. MACD looks in a position where it can go either way along with the Stochs in terms of remaining in buy mode or giving sell signals. INTC has going for it the breakout in progess even though it is weak as breakouts go, the 220 and 50 EMAs are in a good uptrend, and the stock is moving past a very significant resistance on the daily chart. The intraday chart shows INTC gapping up on the open from a well-defined downtrend the other day. It met intraday resistance which it broke through near the end of the day. Lets see if this intraday resistance at about 87 is validated as support tomorrow. Significant resistance is at 88. This may still be worth a play. However, I have seen much healthier breakouts before. I would at least wait until 88 is broken through before playing this one. AOL suffered a steep decline losing what appears to be 40% of its value in less than two weeks. It has bounced off of its 50 day EMA. Looks like the bounce can follow through some more, but the technicals on this stock is not good. I do not see a trend reversal in this one in the near future.The stock did close at its high which would indicate follow through. A look at the intraday charts show that volume only toward the end of the day favored moves up made by this stock. Before then, volume was favoring sell offs of this stock. Right at the end of the day the stock came back to life from light trading through the day and moved up to 118 where it will be encountering resistance. Not pretty, but there may be some follow through here. IBM is doing the best here. It has made a new high which should get it on the radar screen of the speculators who follow such information. On its move it started a few days ago, there was one day of indecision, but today it took off again with an associated increase in volume. Nice long bar with stock closing at its high of the day. MACD looks very good but will be encountering resistance soon, so there may be a pullback tomorrow or Monday. Stochs just crossed and looks to be giving a buy signal. But I see divergence starting to set in on some of the indicators that I follow which has not confirmed a new high yet. The intraday chart shows good healthy price volume action on this stock. Friday will be telling if the breakout into new highs will follow through. Look at the tape on this one, it may be a good play tomorrow. I am sure the market will impact the above stocks, even though IBM is looking real good. I see a top end for some of the key stocks leading the market. So a time will come soon for money to liquidate their stock holdings, and if the market has gained momentum by then, to move into other of the same type of stocks. So now is the time to prepare one's watch lists in case today's market develops into another rally. I will be staying out of this market until this rally has developed some legs. Bob Graham