Flying High
It was great to meet so many of you at this weekend’s
conference. I know, we look nothing like our pictures. I hope that everyone was
able to take home new knowledge from which they will be able to profit.
This afternoon, I’ll take a look at the tech sector, so we can
determine a new short-term outlook based on last week’s craziness.
Despite today’s bland action, I am happy to see more names on
the new highs list.
Today’s Watchlist:Â
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PowerRating),
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PowerRating),
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Baxter International
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PowerRating),
which I mentioned last week on the long side, continues to move higher. As I
noted, the generic drug group remains strong. Keep an eye on Quest Diagnostics
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PowerRating)
as well.
BEA Systems
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PowerRating)
hit our alert this morning with a sledge hammer. It took out its previous high
with no trouble. If the stock is able to close at a new high, we will monitor it
for a continuation move on Tuesday. If you do take a position based on a move
above today’s new closing high, should that occur, remember, before holding
overnight, that Intel
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PowerRating), IBM
(
IBM |
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PowerRating), and Sun
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PowerRating) are all announcing earnings in the next two
days. You never know where these earnings may lead the market. Remember, if it
closes at a new high, there will be no overhead resistance.
Intel
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PowerRating), in the kick-’em-while-they-are-down category,
is trading lower once again, thanks to a downgrade. While the longer-term share
holders are praying for a bounce, short-term traders should prepare themselves
for another short opportunity. The current daily chart is tracing out what looks
to be a pullback from lows. At this point, set your alerts near the intraday
low from last Wednesday and Thursday.and watch for this level to be taken
out. If it is unable to find support at that level, it may head ever lower.
Watch for volume to back any move.
Until later,Â