Nothing But New Highs
Index Checkup
The NYSE Composite Index
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NYA |
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PowerRating)
broke above 660, finally. It’s close to the all-time high, but not quite there
yet. On another positive note, the NYSE had the highest net new high reading on
Monday for the last year.
Today’s Watchlist:
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EMC |
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PowerRating),
(
ARBA |
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PowerRating),
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IWOV |
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BRCD |
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EMC
(
EMC |
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PowerRating) hit a new high
intraday high on Tuesday. This is the third in a series of breakouts. EMC has
rallied back from several declines, showing its strength. Don’t worry if you
missed the first breakout move Tuesday morning. Watch for a new closing high and
then set your alerts above the intraday high for a play tomorrow. Ideally, we’ll
see strong volume to back a new-high move.
Ariba
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ARBA |
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PowerRating) is truly a comeback kid. Remember about two
months ago when the stock bounced off 50? Well, I just saw it hit 144.
Impressive strength. Last week I mentioned Ariba as a stock breaking out of a
bullish flag. This flag evolved into a cup pattern, the top of which it just
took out. Watch for Ariba to close above resistance and then continue again on
Wednesday. The volume is already quite strong intraday, suggesting a strong
close. Remember to take note of the all-time high as well, which may serve as
resistance.
Interwoven
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IWOV |
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PowerRating) hit
resistance on Tuesday. Daytraders should watch for a move above 80. That doesn’t
simply mean pull the trigger and buy at 80, it’s just a resistance point that
may need to be cleared before the stock could head higher. Swing traders prefer
to watch for a close above resistance and then a continuation move on the day
following the breakout. Look for the 50-day MA to provide trailing support.
Use the weekly chart to plan for upcoming resistance in a
breakout situation.
Brocade
(
BRCD |
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PowerRating) has also formed a cup pattern near its
highs. The 50-day MA provided support during the last pullback. Brocade has shown amazing strength as it’s moved up almost 100% in the last two months. After
hitting a new high in early July, it quickly pulled back. It’s astounding how
quickly the stock came back from the pullback to 160. So what are we watching
for? Look for another move above Monday’s intraday high to provide a short-term
trading opportunity.
Today’s
Non-Tech Watchlist:
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CPN |
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PowerRating)
Calpine
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CPN |
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PowerRating)
hit a new high on Monday and put in a little continuation move on Tuesday. Look
for continued volume strength to back this possible new trend.
Ciao,Â
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