Most of the indices continued a little higher today, although not by any impressive measures. Since it is options expiration day tomorrow, I will be taking the day off from trading to focus on some other projects I am working on.


Good Luck,




DT

The Nasdaq got in gear today rallying strongly well over 1%. The S&P 500 and Dow also had decent days. Surprisingly, the Russell was weak, but it was a positive day overall. If the Nasdaq and the semiconductors follow through here, then a short covering rally may propel the tech index to fresh highs.

Here is a chart of the Nasdaq 100 tracking ETF (QQQQ). It held the lower boundaries of the triangle and appears to be testing the upper side for a breakout. If this makes it out of this base, then a decent rally should follow suit. If it reverses, then I think a top would be in.
Here is a 60 minute chart showing more volatility recently. These are 1% moves up and down. It looks like todays move was impulsive, so there may be follow through.

No charts tonight as we are fast approaching options expiration.

Good Luck,



DT

The large caps pushed ahead today closing near the highs of the day, but I couldn't help but notice the weakness in tech and semiconductors. At least small and mid caps were strong. The Nasdaq is still in a position where it could move higher, and with all other indices moving higher, I am choosing to lean to the bulls side (for a day or two). It seems as if everyone expects strength into and after Bernanke's testimony, but I am a little skeptical. As always, stay on guard and trade what you see.

Here are a few more charts I am watching.


The Estee Lauder Companies Inc. (Public, NYSE:EL)
Nice bullish action here as EL is forming a high tight pennant. It could waffle around and become more of a flag, but it could just as well bust out right here.


Mentor Corporation (Public, NYSE:MNT)
MNT is looking like it will bounce off the lower trend channel. It has converging support and oversold indicators in it's favor as well.


Advanced Magnetics, Inc. (Public, NASDAQ:AMAG)
AMAG is close to falling out of this rising wedge, but it is looking like it may turn higher here. I will be watching for a strong candle pattern to emerge that would send it higher.

Good Luck,


DT

Today was a weak day, although it was also a weak effort from the bears. All the major indices are comfortably above their rising 50day sma's save for the Nasdaq (and $ndx). One could expect a bounce in the next day or two with most of the indices hovering near the 20sma's and after a small string of consecutive negative days. The Nasdaq however is threatening a full fledged breakdown which would be an ominous sign here.

Here is a chart of the Q's which tracks the Nasdaq 100 ($ndx). Not looking too strong here, although there is support below.

NASDAQ 100 Trust Shares (ETF) (Public, NASDAQ:QQQQ)


iShares Russell 2000 Index (ETF) (Public, NYSE:IWM)
The IWM has been looking much better then it's large cap tech counterpart, still holding well over the breakout area. Look for a bounce here in the next day or two.


Here are a couple of charts that are looking bullish to me.

Travelzoo Inc. (Public, NASDAQ:TZOO)
TZOO has been consolidating a move off the lower channel for a few days now. It may attempt the next leg up soon. Keep in mind that this stock has been basing for a very long time and should have enough fuel for a decent rally. PCLN's numbers after hours may help TZOO tomorrow.


Ross Stores, Inc. (Public, NASDAQ:ROST)
ROST reported earnings last week on a weak day. They have been stalling with the general markets continuing to show weakness, but they haven't given back anything either. I see this as bullish, and they should participate in any sort of bounce that comes in the next few days.


Thats it for tonight.


Good Luck,



DT

The bears took a shot at the bulls Friday with a day full of broad selling. While the large caps basically just dropped to their rising 20sma's, the action in the Nasdaq and Sox has me thinking that a correction may be upon us. The semiconductors continue to lag and the markets won't move up much without their participation. Interestingly, I found more short setups this weekend then long setups. While the indices are still holding support on a closing basis, and every dip has been bought, last week was the first time that most of my short setups played out as expected. We'll know soon enough if a high has been put in. On to the charts.


Pactiv Corporation (Public, NYSE:PTV)
PTV has been weakly consolidating along the lower third of a wide range bearish candle. It could be headed to try and fill the gap below.



Under Armour, Inc. (Public, NYSE:UA)
I don't care what Jim Cramer thinks about this company. It looks like an intermediate top is in here to me and it may fail here after a partial retrace back into the broadening wedge top.


Dril-Quip, Inc. (Public, NYSE:DRQ)
I was early last time I mentioned DRQ as a short, and most of these oil stocks look a little extended to me. While the rising 20sma may prove to be support, there is a shot that DRQ gets a measured move down which would take them to a lower pivot low.


Research In Motion Limited (USA) (Public, NASDAQ:RIMM)
RIMM looks like it is failing here. This would be a lower high and possibly mark an intermediate term top as well.


NVE Corporation (Public, NASDAQ:NVEC)
NVEC has been slammed for months now, but it looks like the bears aren't done yet. It can't make it's way higher and could be headed down a few more points.


Best Buy Co., Inc. (Public, NYSE:BBY)
BBY is a great looking short setup in my opinion. It is right up against converging resistance, and could be helped along with a weak market. Indicators are looking great too.


Continental Airlines, Inc. (Public, NYSE:CAL)
CAL may be falling out of a little continuation flag, and while it has support below, it still offers a decent risk / reward trade setup.


UAL Corporation (Public, NASDAQ:UAUA)
Similar setup in UAUA here as it shares sectors with CAL.


Lumera Corporation (Public, NASDAQ:LMRA)
LMRA is a chart that is looking bullish to me. It has been drifting back and could be turning here at the 200sma.


The Knot, Inc. (Public, NASDAQ:KNOT)
KNOT is another bullish looking stock as it has been heading up this channel without too much difficulty.


Meridian Bioscience, Inc. (Public, NASDAQ:VIVO)
VIVO popped out at me as I was looking at my watchlist in the weekly timeframe. These are all time highs here and it just cleared a solid looking base. I am showing the daily chart as an inset showing what Thomas Bulkowski calls a scallop pattern. It is pulling back to support and may offer a good entry for a medium term trade.



Good Luck,


DT