The small caps followed through today and could be in rally mode now. It's good for the markets when small caps or tech lead the way as it shows market participants are willing to put capital in riskier investments. The fact that the techs are lagging could short circuit this rally, but I am giving the bulls the benefit of the doubt until proven wrong. I am short of time tonight so I am just going to add one chart to this weeks list.

Riverbed Technology, Inc. (Public, NASDAQ:RVBD)

RVBD has been consolidating the IPO run up in a very orderly manner. It is starting to hug the 20sma and may push past resistance in the next day or two.


Good Luck,

DT

The markets responded positively after the fed announcement this afternoon pushing the Dow back to all time highs. I wouldn't put too much stock into the fed reaction as these types of moves have a way of regressing to where they began. While todays move wasn't overly impressive, there were a few things that should have bears getting a little nervous. Volume was higher today, the Russell is attempting to breakout, the Transports are attempting to rally, the Dow made it to all time highs, and the S&P made multi year highs. I get nervous when everyone hops on the same train, but it looks likes the markets will rally here.


iShares Russell 2000 Index (ETF) (Public, NYSE:IWM)
Here is a chart of IWM which tracks the Russell 2000. It cleared the recent base and may breakout here.


NASDAQ 100 Trust Shares (ETF) (Public, NASDAQ:QQQQ)
Here is a chart of the Q's holding in the triangle. It's technically not a triangle failure until it closes out of the triangle, so the chart pattern is still valid here. I've been mentioning that the 44.20 area has been important and once again it proved itself as a congestion area.


Rambus Inc. (Public, NASDAQ:RMBS)
Here is a chart of RMBS pulling back into gap support. It looks like it may be turning back higher here.


Brocade Communications Systems, Inc. (Public, NASDAQ:BRCD)
BRCD continues to look good holding this rising trend line. It's holding near the 20sma and may get a lift if the techs bounce higher.


Daktronics, Inc. (Public, NASDAQ:DAKT)
DAKT is drifting back in a descending broadening wedge. Sometimes the stock makes a partial decline at the end of this type of base before breaking out, so I will be watching a decent candle to confirm the halt.


iRobot Corporation (Public, NASDAQ:IRBT)
IRBT looks like crap, but volume is coming in near the bottom of this large trading range. It looks like it may be bottoming out here.


American Science & Engineering, Inc. (Public, NASDAQ:ASEI)
ASEI is quite oversold and narrowing in range here. It looks like it started to turn up already.


Guess?, Inc. (Public, NYSE:GES)
GES broke out and made it's first pullback to the rising 20sma. This often provides a decent entry point for a stoke in a strong trend upwards.



Good Luck,


DT

There is not much for me to say today, as the markets basically treaded water today with tomorrow Fed announcement looming. It seems like the past few Fed days, the markets moved ahead of the release and then continued the move after the brief volatility immediately surrounding the release. We'll see if tomorrow is the same, as everyone assumes the Fed will stand pat. If the Fed moves one way or the other, then all bets are off as the markets would probably go haywire. There should be plenty of charts to go over tomorrow.



Good Luck to anyone trading tomorrow,



DT

The markets had a volatile day today moving higher before reversing and closing near the lows. It seems that traders are hesitant with the fed meeting looming mid week. I'm not sure that it means anything at this point, but smallcaps had a positive day outpacing the large caps and the Russell is only a few points from an all time high. It is still clear as mud right now, so I am taking it lightly. I did manage to find a few more bullish charts tonight.

Ross Stores, Inc. (Public, NASDAQ:ROST)
Classic pullback to breakout area for ROST. At this point you have to give bulls the benefit of the doubt which means ROST could head back to the previous high at a minimum.


Autodesk, Inc. (Public, NASDAQ:ADSK)
ADSK doesn't look that clean, but it retraced to a key fibonacci level (61.8%) and started to turn higher.


Target Corporation (Public, NYSE:TGT)
TGT looks almost exactly like the ROST chart pulling back to the breakout area. The rising 20sma may offer good support here.



Good Luck,



DT

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