Free Range Chickens
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upcoming course “The Baker/Ten Electronic Trading Course”, starting
July 7. Click
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My latest trading lesson, Finding
Intraday Trendlines for Daytrading Part I, is also available now.
The Nasdaq remains stuck in a near-term
and intermediate-term consolidation. With everyone playing chicken, it’s going
to take a brave soul (or a catalyst) to get us moving again. Perhaps our friend
the CPI will be the booster shot that the Nasdaq is looking for?
Today’s Watchlist:Â
(
CNXT |
Quote |
Chart |
News |
PowerRating),
(
BMCS |
Quote |
Chart |
News |
PowerRating),
(
IBAS |
Quote |
Chart |
News |
PowerRating),
(
NMSS |
Quote |
Chart |
News |
PowerRating)
Conexant
(
CNXT |
Quote |
Chart |
News |
PowerRating)
finally broke its downtrend two weeks ago after gapping above it on the open.
Since this move, it has been unable to show strength and has entered a new
downtrend. On Tuesday Conexant gapped down and touched the top of the former
downtrend. We will monitor this issue to see if the former resistance level
holds up as support, or to see if this break in the second downward channel is a
sign of more trouble to come.
BMC Software
(
BMCS |
Quote |
Chart |
News |
PowerRating)
is still stuck in a trading range, with the 50-day MA serving as a pivot point.
We will continue to trade ranges in two different ways. First, traders can look
for bounces off the bottom of the range or bumps against the top as long and
short opportunities, respectively. The other method is to wait for a closing
break outside of the range, looking to open positions on a continuation move.
Should it move outside of the range, we will certainly revisit BMC Software.
iBasis
(
IBAS |
Quote |
Chart |
News |
PowerRating) gapped
higher on Monday, finally clearing its 50-day MA. Sometimes a gapping move is
what’s required for a stock to push over resistance. In this case, the 50-day MA
has not played a key role in the price action. But, a 50-day MA is still a
crucial number, no matter what the stock. For this reason, we will watch for a
break above the resistance level, highlighted below in red, for short-term
trading opportunities. As we have learned, a break of one resistance (or
support) quickly takes the price to the second resistance. iBasis is another
perfect example of this. Thus, if it should move above the second
resistance level, look for a move to the April high.
Natural Microsystems
(
NMSS |
Quote |
Chart |
News |
PowerRating)
crossed over its 50-day MA and quickly headed back to its former highs. Set your
alerts near 88 3/4, as we watch for a move, ideally a closing one, above
Monday’s high. Now that we have seen a close above resistance, it’s crucial that
we watch for a continuation before opening any long positions. Watch for strong
volume, like that which we saw on Monday. Tomorrow’s economic numbers may help
move this market.
Today’s Shortlist:
(
CNET |
Quote |
Chart |
News |
PowerRating)
CNET Networks
(
CNET |
Quote |
Chart |
News |
PowerRating)
has been struggling for months now. Despite its attempts to rebound in May, CNET
is still unable to break above its downtrend. Look for this bumps against this
trendline and the 50-day MA to provide shorting opportunities. In the bigger
picture, we see a descending triangle forming. Set your alerts near 26 1/2, so
that we can be prepared for a breakdown. A closing move below that price
would provide a more secure trading opportunity. Remember, always use a signal
and a trigger (confirmation).
Until next time,
Waiting in the Wings:
SDLI
(
SDLI |
Quote |
Chart |
News |
PowerRating) – consolidating above
former resistance, beautiful
Check back tomorrow
morning at 9:15AM ET for Trading the Open.
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