Downtowntrader

As I was going through the charts this weekend I couldn't find any clear cut direction to trade in. The Nasdaq looks like it is surely headed lower and the semiconductors are looking pretty weak. While the large caps held up better, they also looked like they were headed lower. In spite of all this, I did find some bullish looking charts to accompany the bearish ones. I guess I will wait to see which direction we head in the next few days and trade accordingly. Here are some charts I will be watching this week.

We will start with the bullish charts.


priceline.com Incorporated (Public, NASDAQ:PCLN)
The internet stocks have looked decent and PCLN has drifted back to support.


MedImmune, Inc. (Public, NASDAQ:MEDI)
MEDI has pulled back to support after clearing the base shown below. It could find support here and resume the uptrend.


Ansoft Corporation (Public, NASDAQ:ANST)
ANST is a difficult trade due to the low volume, but it looks like it may break out here.


DXP Enterprises, Inc. (Public, NASDAQ:DXPE)
DXPE has been shifting from a down trend to a slight uptrend as it tries to carve out a bottom. It may find support here for the next leg up.



General Cable Corporation (Public, NYSE:BGC)
BGC has been trading a fairly tight range for a couple months. It has pulled back to a rising 50sma and may attempt to breakout out of it's trading range.


Walgreen Company (Public, NYSE:WAG)
WAG seems to be shaking off the recent correction and may be breaking out of the bull flag shown below.
Here are some short ideas.

Ultratech, Inc. (Public, NASDAQ:UTEK)
I've mentioned UTEK a few times recently and nothing has changed. It still looks like a pretty decent bet on the short side.


Cintas Corporation (Public, NASDAQ:CTAS)
CTAS looks like it is drifting up in a bear flag to resistance. It found selling pressure at the declining 50sma and may be headed lower.


Lam Research Corporation (Public, NASDAQ:LRCX)
LRCX completed a head and shoulder top and looks like it is ready to continue the down leg. Watch for a breach of the pennant shown below.


Xilinx, Inc. (Public, NASDAQ:XLNX)
XLNX looks a little sloppy, but it the recent uptrend broke down and it looks like it is encountering some stiff resistance. It looks like it will make a trip down to the bottom of the broadening wedge shown below.


Broadcom Corporation (Public, NASDAQ:BRCM)
BRCM broke the rising trendline shown below and subsequently rose to test it as resistance. While the indicators are coming off oversold status, the price action is pretty weak.

The markets are at a critical juncture as further weakness will confirm a major top being established. This may be a signal that the current bull market is over. This is not the time to be pulling stops and waiting declines out.



Good Luck,


DT