Follow The Bouncing Nasdaq
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Intraday Update –
The Nasdaq Futures
Did you catch that beautiful reversal
in the Nasdaq futures today? After trading lower all morning, the Nasdaq
Composite broke the bottom of its most recent trading range. Not long after, we
saw a rebound in the futures, which took out their morning highs. This move
above the opening level provided a long side entry point.
One of Thursday’s biggest moves is in the software group, which currently
trading up over 1.3%.
On another note, looking
at the daily Corning
(
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PowerRating) chart, I’m reminded once again why I prefer
daytrading over any other technique. On Wednesday
we set ourselves up for a move outside of the current channel. Thursday
morning we saw a break to the downside, at which point it fell roughly 12
points, after exiting the range. The stock has already recovered 50% from its intraday low. If I had gone
short with the intention of holding overnight, I would be ill when I looked at
how much I had given back intraday.
Today’s Watchlist:Â
(
NUAN |
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PowerRating),
(
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(
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Nuance Communications
(
NUAN |
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PowerRating) is
trading at a new high on Thursday. It broke out from an ascending-triangle
formation last Thursday and finally put in a continuation move this Thursday.
Watch for a three to five day run. The volume has not been exceedingly strong on
the continuation, so keep an eye on it, to see if it picks up.
Broadbase Software
(
BBSW |
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PowerRating) has been in a trading range for several weeks now. Set your alerts at
34 and 24 1/2. Both of these
prices are just outside of the top and bottom of the trading range. Daytraders
may want to open positions on the first move outside of the range, while swing
traders may consider waiting for a continuation the following day.
About.com
(
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PowerRating) may
be setting up for a potential short opportunity. Watch for a breakdown from both
the near-term consolidation and the longer-term support. Consider possible short
positions on a break of the 52-week low. More aggressive traders may want to
consider short positions on a break of the near-term trading range. If this is
your preferred method, watch for support near 22 1/2.Â
Affymetrix
(
AFFX |
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News |
PowerRating)
bounced off its 50-day and 200-day MAs this morning. These levels converged
right at another near-term support level. Although it’s recovered intraday,
we’ll prepare ourselves for another potential move lower. Watch for a move below
both moving averages to take the stock to the next support level. If it breaks
that level, then watch for another leg lower. As we know, stocks don’t fall in a
straight line, so in a breakdown situation, it’s likely to make a stair-step
pattern.
Hasta La Vista,Â
Â