Gappies
When so many stocks gap like they did this morning, I try to compile a list
of those that may make a recovery. In a strong market, or market reversal, many
of the biggest names will be the first to come back. At the same time, I
like to monitor them as the weakest names on a intraday basis which could
breakdown
Today’s Watchlist:Â Gap
Fillers
Many of the stocks are in the semiconductor group, so do not
forget to look at the SOX first. The index is currently in a descending and weak
pattern, so we may see more downside, rather than gap filling.
Some of the most volatile semis are showing almost identical
charts, such as Globespan
(
GSPN |
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Chart |
News |
PowerRating).
In the case of Globespan
(
GSPN |
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Chart |
News |
PowerRating), the daily chart shows
equal weakness too. In fact, it looks like a nice short with a descending-triangle formation.
Another name in the same group that shows trouble is TranSwitch
(
TXCC |
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PowerRating).
PMC Sierra
(
PMCS |
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PowerRating) was one of the biggest names that gapped
this morning. It moved in sympathy with Cisco Systems, my favorite name to
trade.
On the other side of the market, Concord EFS
(
CEFT |
Quote |
Chart |
News |
PowerRating), in the
Financial Services Group continues to head north in its channel. This is one to
watch.
Until later,