Death By Association
Do you what happened when
Eli Lilly released news regarding their Prozac case? On the Nasdaq, the
hardest hit was Sepracor. It’s amazing how the technicals on the five-minute
charts had set it up for a move and then news broke it out.
Today’s Watchlist:Â Â
(
AXE |
Quote |
Chart |
News |
PowerRating),
(
GD |
Quote |
Chart |
News |
PowerRating),
(
WEBM |
Quote |
Chart |
News |
PowerRating),
(
ALGX |
Quote |
Chart |
News |
PowerRating)
Anixter International
(
AXE |
Quote |
Chart |
News |
PowerRating)
broke out to a new high on strong volume on Wednesday. The stock traced out a
cup pattern on the charts over the last few months. This new high breakout
brings it to our Watchlist. Watch for another volume-backed move over
Wednesday’s intraday high.
General Dynamics
(
GD |
Quote |
Chart |
News |
PowerRating)
broke out of a a weird cup-with-handle pattern on Monday. The stock has been
trendling along a line formed during the bounce off the 50-day MA two weeks ago.
Look for the stock to continue trending along the line. Consider using bounces
off the trendline which take out the previous day’s high as potential entry
points. Look for volume to serve as confirming indicator.
Now let’s move to the
short side.
Webmethods
(
WEBM |
Quote |
Chart |
News |
PowerRating) was
trending lower in a channel for about two weeks when it suddenly broke down on
Wednesday. On Thursday it’s trying to get back into the channel, but has failed
so far. Watch for a move below Wednesday’s intraday low on strong volume. Note
that Wednesday’s volume was very strong.
Allegiance Telecom
(
ALGX |
Quote |
Chart |
News |
PowerRating)
broke down below support on strong volume on Wednesday. As with all of our
breakdowns, we’ll watch for a continuation move to take out the low from
Wednesday. Ideally, the continuation move will be backed by equally strong
volume. Should it reverse, look for former support to become resistance.
Until later,Â
Check back at 2:15PM ET
for Trading the Techs PM.