Summer Mondays Are Not Fun Days
The futures opened higher
this morning and retraced to fill the gap. They were then unable to take out the
morning high. Trading is light across the board.
Today’s Watchlist:
(
SFA |
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PowerRating),
(
NEWP |
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PowerRating),
(
EXTR |
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PowerRating),
(
PWER |
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PowerRating)
Scientific Atlanta
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PowerRating)
broke out from a cup pattern that formed on a bounce off the 50-day MA. On
Friday it hit a new high on strong volume. Watch for a continuation move above
Friday’s intraday high. If it trades down today, watch for it to hold above
Thursday’s intraday high. A close below that level would be a negative sign.
Ideally, another move higher will be on strong volume as well.
Newport Corporation
(
NEWP |
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Chart |
News |
PowerRating)
has been quite volatile in the last month. The stock was just trading 20% lower
not long ago. On the last dip, the 50-day MA came in and supported the stock. On
Monday it gapped up to nearly 123 on over 100,000 shares in the pre-market. Now
that the stock has gapped above resistance at 120, we’ll watch for another gap
above the near-term downtrend that has formed. Because this trend is so recent,
it’s still weak. More conservative traders should set their alerts near 131, the
all-time high. Others may simply watch for a move above last Wednesday’s
intraday high. Newport often has a large spread, so expect to see a lot of
volatility. In a strong move, the spread may close.
Extreme Networks
(
EXTR |
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Chart |
News |
PowerRating)
broke out to a new high last week but gapped low the next day. This morning the
stock ran back to the same high as the last false breakout and then died.
Because this level has been tested twice, we’ll now watch for a move above last
Wednesday’s intraday high. The volume has been slowly dying, but we are now deep
into summer, so it’s only to expected.
Power One
(
PWER |
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PowerRating) surged higher for
three days after coming off its recent lows. It then moved into a four-day
consolidation pattern. Monday it found the gusto to move higher outside of the
range. The volume looks on track to be strong than average, but it may slow late
in the day. Watch for a continuation move to provide potential long
opportunities. We may see resistance at 150 and at the previous highs. Use
caution as this stock is clearly volatile.
Until later,Â
Check back at 2:00PM ET
for Trading the Techs PM.