One Day More
Many traders are sitting on their hands
as they wait for the Fed announcement. Even daytraders should use
caution as people are being shaken out by abnormal intraday price
swings.
Consider focusing on issues which do not
usually react to economic numbers or other market-moving factors.
Today’s Watchlist:
(
BRCM |
Quote |
Chart |
News |
PowerRating),
(
INTC |
Quote |
Chart |
News |
PowerRating),
(
CIEN |
Quote |
Chart |
News |
PowerRating)
Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating) is not far off its
all-time high. Since its early August low, it has been forming a
cup pattern on its attempts to reapproach its all-time high.
Watch for a move above 261 5/8, the all-time high, to provide a
potential long opportunity.
Something to beware of when trading big
names like Broadcom is the intraday choppiness. Thanks to low
volume and larger-than-average spreads, many traders are quickly
shaken out of their positions. Before trading BRCM, glance over
the 5-minute charts and determine whether or not both you and
your account can handle the volatility.
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) is testing its all-time
high on Monday. After retracing to 60, the stock has shown
amazing strength in its recovery. It quickly set a series of
higher highs and higher lows and regained all that it lost. Watch
for a new closing high followed by a continuation move on Tuesday.
Do not forget that the Fed announcement is due out tomorrow, so
there will be increased risk with any position opened prior to
this event.
Ciena
(
CIEN |
Quote |
Chart |
News |
PowerRating) is
trading near its all-time high as well. What catches my attention
is that the recent pullback was on light volume. As it rallies
off its lows, we see a pickup in volume. The volume spike in the
last two days could signal one of two things: 1) either a buying
climax, which I base on the intraday reversal move from Friday,
or 2) a foreshadowing of another move to a new high. Watch for a move above Friday’s intraday high for potential long
opportunities.