Downside Palliative
Here’s one that’s holding up well against today’s Nortel, Dell, HP, inflation
surprise (PPI), and Iraq tumult.
As mentioned in yesterday’s commentary, many stocks are beaten down and not setting up in bases or probing new
highs. Hence, we
are looking for pattern setups that can get us in early on stocks before the
more traditional breakout formations.
Notice that for much of today’s session, NVIDIA
(
NVDA |
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PowerRating), a computer
graphics firm highlighted in yesterday’s piece, is among the biggest
point-gainer and rallied almost 5 points on a dismal day.
In a similar vein, Biogen
(
BGEN |
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PowerRating) is trading just shy of a six-month peak
and rallied today out of a classic 1-2-3-4 Pullback From Highs setup. Biogen
also pumped higher and triggered the pullback with an outside day bar. Volume is
about 25% higher than average, showing big players are lurking. Biogen is up
just 2 on the session to 72 but up more than 4 points off its gap-down high.
