Icky
It looks like the floor is really caving in on a lot of the big-name techs. Even those that continued to bounce off key support levels finally
gave up. I actually consider this to be a a very positive sign. It is always
darkest before the dawn. But, no matter how far down the market goes and how
negative all the indicators get, I am not going to try to call a bottom. Trying
to pick tops and bottoms is very dangerous. Certainly, if you have a 20-year
time horizon, buying stocks like Cisco at 50 today could be very profitable. On
that note, I continue to advocate that daytraders should have a portion of their
money invested for the long-term, adjusting the long-term holdings as
fundamentals change.Â
As for he current situation, continue to focus on the
short-term. If you are taking short positions in this market, keep your stops in
place and avoid greed. The market could turn on a dime. No one knows if this
bear market will come to an end anytime soon, but I would hate to be short when
it does decide to bottom.
Today’s Tech Watchlist:
(
PMCS |
Quote |
Chart |
News |
PowerRating),
(
AMCC |
Quote |
Chart |
News |
PowerRating),
(
INKT |
Quote |
Chart |
News |
PowerRating)
PMC-Sierra
(
PMCS |
Quote |
Chart |
News |
PowerRating) broke down below near-term support this
morning and looks poised to test is April lows. In between here and there, there
could be a short opportunity. With everyone looking for capitulation this week,
and perhaps today, the stock may close 20 points from where it is trading right
now.
Applied Micro Circuits
(
AMCC |
Quote |
Chart |
News |
PowerRating) broke below support on
Tuesday, but rallied back before the close. On Wednesday it is trading just over
this key level. The high-volume reversal on Tuesday was not enough to support
the stock. The near-term picture shows a descending-triangle formation. Watch
for a breakdown below support to potentially lead to a move to Tuesday’s
intraday low.
Until later,Â