“The” Tech
Whenever people talk about the Nasdaq,
they seem to immediately discuss the status of Cisco Systems. CSCO is perhaps
the center of the tech universe. While it has not been a leader for some time, it
still remains a prime bellwether of the longer-term picture of the techs.
Currently, CSCO stands just below a support level. While many see 58 as the key
level to watch, I think that there is a support at several different levels, as
shown on the chart. On the upside, CSCO continues to have resistance at 70.
Thanks to all who who took
my trivia test on Tuesday. The question was simple, “Which stock has the greatest
weighting in the semiconductor index?” While many people think that the answer is
Intel, in fact, in the number one position is — Rambus, followed by Xilinx.
Today’s AM Tech
Watchlist:Â
(
MSFT |
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PowerRating),
(
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Microsoft
(
MSFT |
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name that we are all familiar with. It rallies a bit on the Supreme Court’s
decision to let the trial follow the traditional order in the appeal process.
The failure to rally over the highs from earlier this month leads me to leave
MSFT on the short list. Testing support for the last three days, MSFT may still
break down. Set your alerts near 60 and Tuesday’s intraday low as we watch for a
breakdown. Look for a short opportunity based on a break of support.
Rational Software
(
RATL |
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PowerRating),
on the long side, rallied back quickly after its intraday move below the
breakout level on Tuesday. On Monday, it gapped open, perhaps killing the
opportunity to trade the continuation. Wednesday may in fact provide another
opportunity to trade the continuation. Set your alerts near Monday and Tuesday’s
intraday highs and watch for another move north. Volume-wise, it has been
trading consistently at just under two million shares, which provide ample
liquidity. If you are a pullback trader, watch for another retracement to the
breakout level highlighted below.
Today’s AM Non-Tech
Watchlist:Â
(
GCI |
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PowerRating)
Another setup has come
across my radar, this time not in the tech sector. Gannett
(
GCI |
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PowerRating) has been
consolidation near its lows for the past five days. This may be a pause before
another left lower. As always, we will avoid having a directional bias. Watch
for a move outside of the trading range. Set your alerts near 50 3/4 and 50.
Until later,Â