Oh, L’Amour!
Lately I have been hearing that people are having trouble
finding patterns, due to the choppiness. I think that the problem is related to
the fact that people have fallen in love with certain stocks. We all go through
this. We trade a stock, we make money on it, and we think that we can continue
to trade it forever. Or, we trade a stock, we lose money, and we think that we
have to trade the same stock again to make back our money.
When I first realized that I had this problem, I started making
lists of new stocks every day to watch. Eventually, I started switching
markets. I find that when I have trouble finding setups in the stock
market, I can often find something in the futures market.
Today’s Tech Watchlist:
(
AMAT |
Quote |
Chart |
News |
PowerRating),
(
DITC |
Quote |
Chart |
News |
PowerRating)
Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating)
has been hurting with the rest of the chip makers. But, unlike most of the names
in this group, it actually held up quite well on Wednesday.
After taking a significant
dip last week, it re-entered its near-term trading range. Based on the move that
we saw last week, it’s clear that there is likely to be opportunity on a move
outside of the range. Set your alerts near both the top and bottom of the range.
The overall feeling toward
the chip- and chip-equipment makers appears to be negative, thus it appears more
likely that we wil see a move downside. But, it is important to always keep in
mind that this pattern has no directional bias.
DiTech
(
DITC |
Quote |
Chart |
News |
PowerRating) rallied off its lows last week by almost 20%.
Sadly, it has returned to test its lows once again. Currently, DITC is
completing an upside-down cup pattern. Watch for a break of the support level
that I have highlighted below. Volume has been consistent, so watch for a volume
spike on a breakdown.
Until later,Â