Semi Comatose?

Presently, the Nadsaq futures are trading near their lows and have almost filled the entire gap from this morning.
As usual, the futures filled the gap not too long after the open. Currently, they are forming the very first part of a cup pattern. Several of the bigger
names are rallying of their lows. One group that is not participating is the semiconductors. Xilinx
(
XLNX |
Quote |
Chart |
News |
PowerRating), the leader in the group, mentioned as a
short last week, is down 7 points, and is not trading below 50. A tech rally without a confirmation by the semis is a scary rally.

The chart of Manugistics
(
MANU |
Quote |
Chart |
News |
PowerRating) shows the stock trading at a dual resistance area. Monday morning, it tested
both areas, one of which is the 50-day MA. There are, as there always seem to be two ways to play this pattern. This first is to watch for short
opportunities, like we saw this morning, or a failed move above this level. The second method would be to watch for a breakout above the two resistance
areas. If a breakout does occur, then you will want to know the next resistance levels,
so that you may be able target shoot a bit. In this situation, it looks like 100
and 110 are the trouble spots.

Until later,

David Baker