Ex Post Facto
The futures have been consolidating since the morning reversal.
Wait for a move outside of the trading range to give us an idea of market
direction.
Tonight, consider going over a list of stocks that rallied off
their lows and watch for those to breakdown. We won’t know if today’s rally is
for real until we see a strong close and several continuations. Go over a list
of stocks that bounced and set your alerts near their intraday lows. Watch the
high flyers, the semis, the internets, the B2Bs, etc.
Today’s Watchlist:Â Â
(
ISSI |
Quote |
Chart |
News |
PowerRating),
(
CREE |
Quote |
Chart |
News |
PowerRating),
(
SDLI |
Quote |
Chart |
News |
PowerRating)
Integrated Silicon
Solutions
(
ISSI |
Quote |
Chart |
News |
PowerRating), along with many of the chip makers and semis, has been
moving south lately. ISSI hit a weekly support level last week and bounced. The
closing break of the 200-week MA is not a positive sign. Combine this with the
fact that the move was on strong volume — we may see a negative scenario forming.
On the daily charts you’ll see that it’s trading below the
200-day MA as well. We’ll monitor ISSI for both another bounce off support and a
breakdown. Should it close below support, look for potential short
opportunities.
Cree Systems
(
CREE |
Quote |
Chart |
News |
PowerRating) broke its 200-day MA on Friday and
closed below it. On Monday it gapped higher and found support at the trendline
which began in mid-April. Right now, we see that the 200-day MA is creating a
problem and acting as resistance. CREE needs to move back above the 200-day to
inspire shareholders and traders.Â
Watch CREE for a move below support, which I’ve highlighted with
the redline below. A breakdown below support could result in a retesting of each
of the other lows which created the trendline. CREE may also find psychological
support at 100.
SDL Inc
(
SDLI |
Quote |
Chart |
News |
PowerRating) turned former resistance into support on
Monday. On Friday, the move lower looked like it might be en route to fill the
gap from early July. With the markets acting quite weak, watch for a move below
the support level. In a breakdown scenario, you’ll want to watch for support at
the bottom of the gap from early July, as well as at the 200-day MA, where many
stocks are known to bounce. SDLI is not for the faint of heart — it’s very
volatile. Keep that in mind before opening a position.
Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating) has been trending back toward its lows. Watch for a move below
the July low to provide a potential short opportunity.
Until later,Â
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