Nasdaq Bounce

The Nasdaq led a bounce back today clearing yesterdays high on decent volume. As most of you know I key in on the Nasdaq, and particularly the QQQQ etf. When they are leading the move, good things happen. It is still too early to say whether the indices will break out here for another wave higher, so it is probably best to take it light right now. I think I'm gonna do things a little differently this year as far as how I post my charts. I usually post a mess of charts with just a few comments, but I think I will narrow down how many I post and offer more thorough comments. We'll see how it works out. Here are a couple charts of one of the stocks I was looking at for my contest. I looked at weekly charts for the contest, but I will drill down to daily charts in case any of these setup for a nice trade.

Qiao Xing Universal Telephone Inc. (Public, NASDAQ:XING)

What struck me about XING's weekly chart was the huge saucer base with clearly defined resistance. It broke through resistance a month ago, and came back into the base. I like the volume on the right side of this chart and it looks like it is only a matter of time before this breaks resistance. I didn't take it for the contest because it wasn't over resistance, although I bought some "real" shares of this before any of my contest picks.
Here is a daily chart showing the past few months. It looks like it is trying to breakout out of this consolidation channel while holding near a previous pivot high. It is still a little dicey here as it is being pushed back by the 50sma, but the recent action looks bullish to me.




This year has started off quite interestingly testing traders right off the bat. Keep calm and stick to your rules.

Good Luck,

DT