Bears 28, Bulls 2
This is not a day for the faint of heart to trade — just look at what the
futures did this morning. They made several explosive moves in only a few
minutes. Along with the futures, so went many of the big-name stocks, moving
several points in only a short period. The Nasdaq futures showed that today is
one of those days when we must look to quickly lock in profits. If you are
planning on chasing stocks, you might want to think again. Simply take a look at
the big boys’ three-minute and five-minute charts, you will see scary topping
action that would require a quick trigger finger. Set your alerts for a
Nasdaq Futures move back above intraday resistance of 2740. Do not forget
that the futures are halted at -95.00 points. 2700 is also a key level.
As for the semiconductors, they are not helping one bit. They saw similar
volatility in the early morning and then sold off later on. Currently, they
point to another move lower. Of course, based on what we have already seen this
morning, they could turn at any moment. Set an alert on the SOX near 600, at
which point they will either find support, or provide a great short opportunity.
Remember that you can trade the SOX by trading the SMH.
With the all of the major groups in the tech sector pointing
down, it is likely that there will be more red before there is more green. If the
market continues to be weak, you will want to watch those names that bounced
after Monday’s sharp decline, such as Xilinx
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One name which continues to show unstoppable selling is Broadcom
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went from trading higher day after day to a downtrending channel on simply one
little announcement.
The intraday chart is equally distressing.. Watch for a short
opportunity here as well.
PMC Sierra
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watching for weakness. Triquint
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able to recover.