The Mobile Rally
The world’s biggest maker of mobile phones, Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating), is fueling a
broad-based rally in technology shares after predicting higher earnings in
the
fourth quarter.Â
After its worst close at a two-year low
yesterday,
the European market-cap giant appears to be
attracting some of the fund money purported to be awaiting allocation on the
market’s sidelines. TradingMarkets.com’s TradersWire alerted on the Java
applet
that Nokia did “100% of its average volume before noon.” Nokia
continues showing price persistency, trading near session highs, up 2.61 at
19.59.Â
The rally in Nokia is spurring demand for related
stocks
in broadband such as Ericcson, Applied Micro Circuit, and Broadcom. Â
The Nasdaq is up 44.73 at 2060.90, the S&P 500 is
up
8.47 at 1216.18, and the Dow is up 45 at 10615.
Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating) and Applied Micro
(
AMCC |
Quote |
Chart |
News |
PowerRating),
firms
that make chips for mobile phones, are also higher after concurring that
sales
should improve in the fourth quarter. Broadcom is up despite reporting it
lost a
whopping $3.34 billion last quarter. Ericsson’s
(
ERICY |
Quote |
Chart |
News |
PowerRating),
the
world’s largest maker of mobile communications networks, is up
3.5%.Â
Semiconductor giant Texas Instruments
(
TXI |
Quote |
Chart |
News |
PowerRating), a
firm
that has communications chips in its product line, is showing a critical
mass of
thrusts, gaps and laps as it continues its move above the pivot of its cup-and-handle pattern. This is a confluence of signals that Mark Boucher looks for
and
describes in his Trading Course, available to one-year subscribers to
TradingMarkets.com. Especially strong — and making it overextended — are
the
six consecutive bars higher. Today’s 1.85 to 41.51 rally leaves The Texan up
25%
in six days.