Sunday Night Roundup

Posted by downtowntrader | 9/17/2006 11:22:00 PM | 1 comments »

Last weeks gains were quite impressive for bulls, but with overbought conditions, and the Fed meeting coming up, I would be very careful about what positions I initiate in the next couple of days. The Dow is just a few points from an all time high, so it will be interesting to see if there is a squeeze that takes it there or if the rally is too tired. The Nasdaq has been leading this move up which is bullish, but in looking at some sector charts tonight, I noticed the hardware index and Sox coming up to 200sma resistance. I would think that a pullback, at a minimum, is in order here. As usual for Sunday's, lot's of charts.

BBBY has been strong but may run into trouble at resistance here. The key here is what the Fed says about the consumer and / or housing this week.

Re-Posting XING for those that didn't trade Friday. MACD is turning up nicely.

While the hardware index is looking like it is near some resistance, RACK looks like it will touch 29's at least.
IBCA found support at it's rising trendline and looks good if it can clear the 50sma.
TIE is back at major support and with Basic Materials oversold, it could be due a nice bounce. Of course, if it breaks under 24, it could get ugly real fast. Either way works, as long as it moves ;)
CTXS has managed to work it's way up to trendline resistance. If the Nasdaq runs in to trouble this week, then CTXS should give back a decent chunk of this last leg up.
NSM may be running out of steam, and is in danger of breaking down from this bearish wedge.

BNI didn't quite make it to the descending trendline, but did stall at a previous piot area.
UARM looks like it got a nice short squueze but formed a doji near resistance. This could turn into an evening star pattern if tomorrow is ugly.
I was looking at the Biotech indices and thinking they were looking bullish, and Trader Jamie also mentioned a possible rotation into Biotechs on his blog. Here are two that I think looks bullish.

First up is LIFC. It is finding support at the 20sma right under trendline resistance. Slow Stochastics is turning back up as well.
Second is ILMN which I mentioned last week. This looks like it is starting the next leg up.
LVS looks like it is done here. It tried to rally and gave back all the gains the next day. It is leaning out of a rising wedge in what could be the right shoulder of a Head and Shoulders top.
SIRF is another short chart that may be failing at a declining trendline. MACD is about to cross as well.
At this point I think it's best to either start nibbling on the short side or stay on the sidelines. The markets could get a push as the media frenzy on a new Dow high may get some people to chase, but the markets rarely break major resistance successfully if they are overbought before getting there. Shorting heavily could be quite dangerous as well, as bulls have been strong. As always, adhere to your plan and wait for the markets to confirm the move.

Good Luck,



  1. Anonymous // 2:05 AM  

    Hello DT,

    Could you look at SMSI's chart when you have a chance? Thank you.

    Scott K