Leaving Las Vegas
Although the
Nasdaq Composite closed in positive territory today, I am
getting a bit concerned.
The Nasdaq’s inability to close over its 10 EMA of 2559,
and the Nasdaq futures’ close below 2500 concerns me. With the 10, 20
and 50 EMAs currently in
steep decline, it would have been productive to see
Tuesday’s high of 2549 and the 10 EMA at 2559 taken out with authority.
We certainly saw some
portfolio rebalancing and window dressing today as the big-cap
technology bellwethers like
(
CSCO |
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PowerRating),
(
SUNW |
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PowerRating),
(
INTC |
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PowerRating) and
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MSFT |
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got taken to the
woodshed and the “chosen ones” like
(
JNPR |
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PowerRating),
(
BRCD |
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PowerRating),
(
AMCC |
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(
EMLX |
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PowerRating), et al continue
their advance. Frankly, with the Nasdaq Composite’s inability to close
over its 10 EMA with the weakness of CSCO, INTC and SUNW, it seems as
though the rallies in the
“chosen ones” may be subject to some sharp retracements
soon. Let’s
look at the recent advances: in the past five trading sessions, JNPR has
rallied 50 pts — over
55%; BRCD has rallied over 46%; EMLX has rallied nearly
60%, etc. etc. etc. Although this advance has provided some great trades
on the long side, it may now be coming to an end. As such, I am watching
the following stocks for entries:
LONG WATCH: Not finding
any low-risk setups.
SHORT WATCH: JNPR, BRCD, EMLX, PMCS
and QLGC look very, very toppy.
I am sorry for the short commentary today, but I have a plane to catch in less than 30 minutes. Keep it close to the vest.