In This Corner… The Locals

Listening to the action in the pit reminds me of a boxing match between two
heavyweights who are just trying to beat the life out of each other. It’s the
locals versus the big firms. Who will win?  Ask me after it’s over, and
then I’ll tell you what I thought was going to happen.

Intraday Check-Up

The Nasdaq futures are having trouble
getting over the 3767-3670 area.  Though, intraday, they have put in a
series of higher lows.

Today’s Watchlist: 
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,
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,
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Sun Microsystems
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continues to show strength, despite
broader market declines. After taking out its all time high of 106 3/4 on
Tuesday, it headed even higher on Wednesday. On Thursday we are seeing only a
small pullback that is holding the very near-term trend line. Watch for a move
above the new all-time highs. In the bigger-picture, we see a large cup
formation.

Silicon Storage
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has decided to return to its lows.
Like with all of the plays from this week, we’ll watch for both a long and a
short opportunity. Swing traders will probably want to focus on the short side
and watch for a move below support followed by a continuation, which may offer
an entry. Daytraders should be unbiased and look to play both sides. Daytraders
could play a bounce off support or a new breakdown.

Ciena
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CIEN |
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has had a very bumpy ride. It has formed a
large cup pattern over the last few months. Currently, it may be looking to form
a handle for this cup. The near-term consolidation is only a wee bit off the
highs, in percentage terms. Daytraders should look for short-term plays based on
moves outside of the consolidation. Swing traders should watch for a handle to
form and for a continuation move to follow a breakout. Set your alerts both
outside the trading range and near the all-time highs.

Biomet
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is another strong player in the biotech
sector. After breaking out from a quadruple top, it formed a flag formation.
Thursday is the first move outside of near-term downtrending channel. Watch for
a continuation move on Friday, should it close outside of the channel. Note that
the volume has been accelerating for the last four days. The declining volume
during the downtrend could be a positive sign.

Ciao,

Dave Baker

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