Repeat Performance

As usual, we opened up and traded down. That is usually a sign of a bear market,
which it seems we have been in for some time now. Watch for another late-day reversal if the buyers come in. Stocks have been jiggy and market makers are
lifting over and over to try to get you to over-pay. Use caution on stocks whose
intraday patterns you are not familiar with. 

Personally, I did alright on my one bellwether that I held overnight, and
otherwise, I am watching financials and drugs when techs weaken.

Today’s Tech Watchlist:
(
PDLI |
Quote |
Chart |
News |
PowerRating)
,
(
QCOM |
Quote |
Chart |
News |
PowerRating)

Protein Design Labs
(
PDLI |
Quote |
Chart |
News |
PowerRating)

has been trending quite well for the past few months. Wednesday’s intraday
reversal was a rally out of a pullback, and a 1-2-3-4 setup. Once again, it
depends on the attitude of the broader market and the other biotechs. This
subgroup has been performing rather well of late, but remains volatile. Set your
alerts for a move above Wednesday’s intraday high, and watch for a continuation of
the short-term rally. If we see weakness again, it may be a viable short, should
it continue to extend the downward channel that it started to form.

Remember when Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating)
was the king of the market?
Remember when it just would not die? While those days are gone (at least for the
moment, I don’t make predictions), it is trying to make a bit of a comeback. The
comeback is in the form of a low-level breakout. QCOM has appreciated more than
25% since its lows of September. The intraday high from Wednesday tapped the
resistance level set in September. Watch for a breakout above this level to
offer a long opportunity. If you take a position, put your stops in, because
this market turns on a dime (and thanks to decimals, sometimes on a penny).

 


Until later, 

Dave Baker