More Positive News Movers
So far, so good. Friday’s news movers responded well to
positive news, combining high volume with sharp price gains, the kind of
constructive behavior needed to complete bases required by intermediate-term
momentum traders.
Palm
(
PALM |
Quote |
Chart |
News |
PowerRating), the maker of
handheld digital devices, shot up 7 15/16 to 66 15/16 on triple normal volume as
averaged over the past 50 sessions. The Nasdaq stock market said Palm would
replace Global Crossing
(
GBLX |
Quote |
Chart |
News |
PowerRating) in the Nasdaq 100
(
$NDX.X |
Quote |
Chart |
News |
PowerRating), effective
Nov. 6. Global Crossing is switching to the New York Stock Exchange.Â
Palm was a poster child of the Nasdaq
bear market this year, but the stock has made steady progress building a
correction-recovery pattern. As of Thursday’s close, Palm held a six-month
relative strength score of 95. The stock still needs to clear its mid level of
around 92 1/2 before I’d consider it for long trades. The mid range is the
halfway point between a stock’s pre-correction intraday high and subsequent
intraday low. Requiring a stock to overcome that threshold is one of my tests
for subsiding overhead resistance.
Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) gapped up 7 11/16
to 70 1/2 on nearly twice its usual trade. After Thursday’s close, the wireless
technology company fiscal fourth-quarter earnings of 25 cents a share, topping
First Call/Thomson Financial’s consensus estimate by a penny.Â
QLogic
(
QLGC |
Quote |
Chart |
News |
PowerRating) is an example of
the base-building and accumulation that I like to see as I wait for the market
to multiply bases. QLogic ran up 15 13/16 to 122 1/8 on heavy volume.
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