Sunday Night Update

It's been an interesting start to the year to say the least. Volatility looks to be coming back into the market, and despite some swings, there is no clear direction yet. My guess would be a move up soon based on the Nasdaq taking the lead from the blue chips. How high or long this move will be is anyones guess, but we are likely close to setting an intermediate to major high. The 2007 Consumer Electronics Show (CES) is in Vegas this week, and I imagine there will be plenty of moves in stocks like HAUP and IRBT. Here are a few stocks I am looking at this week.

Brocade Communications Systems, Inc. (Public, NASDAQ:BRCD)
BRCD's consolidation may be complete as it found support at the lower bollinger band. It may be headed to new highs from here.


Daktronics, Inc. (Public, NASDAQ:DAKT)
DAKT has been consolidating well above gap support. It may be ready to turn back up here.


InnerWorkings, Inc. (Public, NASDAQ:INWK)
INWK has worked it's way back to previous resistance which should revert to support. Watch for a candle pattern here confirming support.


Perficient, Inc. (Public, NASDAQ:PRFT)
PRFT may be a decent short, especially if I'm wrong on the near term market direction. It has worked it's way up to a declining 50sma and descending trendline which may serve as resistance.


Sun Communities, Inc. (Public, NYSE:SUI)
SUI is another possible short, but it is a little further along then I usually like. However, volume rose as it broke under some trendline support.


One thing that has been clear so far is that Precious Metals and Oil are getting hammered. I think the oil services stocks are setting up for a tradeable bounce for short term traders. I'm not sure what to think about the metals. It looks like the dollar is starting to turn and everywhere I look people are saying they are not worried about gold because it's in a multi year bull market. If no one is worried, then there is more downside.

If you have some time, check out this post by the Highchartpattern team on their trading rules and how they came about. The whole narrative series is worth checking out for those that have never visited them.

Good Luck,

DT