Boy the markets are all over the road recently. They gave back all of yesterdays gains and then some today. Breadth was extremely negative as well. The Nasdaq is very close to breaking down which should end up dragging the rest of the market with it.
Here is a chart of the QQQQ showing a breakout failure and the subsequent fall back into the base. If it falls out of this triangle then the move down could be very swift.
NASDAQ 100 Trust Shares (ETF) (Public, NASDAQ:QQQQ)
I think I will stay away long and short from most of the general market, however, it looks like the oil service stocks are starting to pull back again. While I think oil will be a decent trade soon, I think this move down can be played.
Oceaneering International (Public, NYSE:OII)
First up is OII. It has been rising like most of the oil stocks in a bear pennant. The target for these types of pennants is a measurement of the previous leg added to the point where it falls out of the pennant. Conservative traders can half that.
Frontier Oil Corporation (Public, NYSE:FTO)
FTO looks like it already fell out of it's pennant.
Dril-Quip, Inc. (Public, NYSE:DRQ)
And yet another one. This is actually more of a flag as the lines are parallel. The target is measured the same way as a pennant.
eFuture Information Technology Inc. (Public, NASDAQ:EFUT)
EFUT is one of the only bullish stocks I saw. They closed above this descending trendline for the first time. This is a wild one, so be careful.
Hopefully tomorrow sheds some light on the next move for the general markets.
Good Luck,
DT
It was a pretty strong day higher today as the Dow and S&P 500 made new highs. The Nasdaq led the charge up today but is back to lagging overall. I've been mentioning the 44.20 level as an important level on the QQQQ (Nasdaq 100 tracking ETF) and it closed just above it. It was well above that number following an 18% move in Ebay and a 15% move in NFLX. QCOM was also trading higher so the techs may get some follow through tomorrow. Here are a few stocks I am watching.
Consulier Engineering, Inc. (Public, NASDAQ:CSLR)
I took a position in CSLR a couple days ago and it looks like it is starting to move. Shorts will be scrambling if this can get over 6.80.
Harman International Industries Inc./DE/ (Public, NYSE:HAR)
HAR is pulling back to the rising 20sma after bouncing the lower band. It looks like it is getting ready to test the 52 week high.
priceline.com Incorporated (Public, NASDAQ:PCLN)
Internet stocks have been rolling and should continue to move tomorrow following EBAY's lead. PCLN has pulled back to the lower band near the 50sma and is narrowing in range. It may be close to turning back up.
Books-A-Million, Inc. (Public, NASDAQ:BAMM)
BAMM is a chart that is looking bearish to me. It broke under a horizontal trendline and looks to be headed towards 17.5.
Good Luck,
DT
The markets bounced a little higher today relieving some of the recent weakness. It's a little early to say whether this is a corrective move higher before further weakness, or if the markets are forming a near term bottom. The QQQQ is looking pretty weak to me on the 60 minute chart I follow, so it will be interesting to see if YHOO can help firm up the tech's. It is looking like the Nasdaq will gap higher on YHOO earnings so be on alert for a reversal. Surely, there will also be moves based on the State of the Union address, but be careful of chasing anything as these moves tend to regress within a day or two. The ethanol stocks have already been moving for a few days and will surely be sold to retail traders over the next few days. Here are a few charts I am watching.
Ultratech, Inc. (Public, NASDAQ:UTEK)
I shorted UTEK recently and covered for a small gain, and it looks like it is setting up again. I will be watching for any weakness at this descending trendline and or 50sma.
Brocade Communications Systems, Inc. (Public, NASDAQ:BRCD)
BRCD looks like it is finding support again near the 20sma and could be headed to the recent highs.
American Science & Engineering, Inc. (Public, NASDAQ:ASEI)
ASEI completed a bullish engulfing candle today at support of the lower bollinger band. If it can reclaim the 200sma, it may cause a short squeeze.
U.S. Global Investors, Inc. (Public, NASDAQ:GROW)
GROW looks like it is due bounce here. It is extremely oversold and starting to show signs of life at the lower band and 61.8% fibonacci retrace. Even a dead cat bounce to the 9 or 20 sma would yield a nice trade.
Corinthian Colleges, Inc. (Public, NASDAQ:COCO)
COCO is forming a nice cup and handle base, although technically it needs to clear the handle.
Good Luck and thanks to the readers who have left some great comments recently.
DT
It's funny how out of tune I feel with the markets after missing only one day. I've been reviewing charts tonight and the picture is clear as mud right now. On one hand, the indices have been weak for a few days now and could have a bounce, but on the other hand, they aren't oversold yet and could be headed to the lower bollinger bands. TXN may give the semiconductors and technology in general a much needed lift tomorrow, but the key is if they can hold on to any of the morning strength. The 60 minute chart for the SPY and QQQQ etf's still look pretty weak, so I am hesitant to have faith in any sort of morning gap higher.
In lieu of charts tonight, I linked to some of my more popular recent posts. My normal routine is to spend a few hours on Sunday reviewing sectors and then drilling into individual stocks and I couldn't do that this weekend due to being out of town. I should resume normal posting tomorrow.
Who is the house?
How I use my charts
Trade Ideas Review
Profit Taking Strategies
Know when you're lucky
Good Luck,
DT
I'm about to hit the road and make the drive back to Miami, so no trading today. For those that don't normally check out the Stocktickr blog, they gave me the opportunity in their Interview series. Check it out and let me know if anyone has comments or questions,
Thanks,
DT
