Phone Homeless
When playing the short side, it’s crucial to know
what the weakest sectors are. Currently, the Telecom Index is trading near a
low. It has formed an inverted cup-with-handle pattern on the daily charts,
which presents a potential short opportunity.
Today’s Watchlist:Â
(
MRVL |
Quote |
Chart |
News |
PowerRating),
(
ENER |
Quote |
Chart |
News |
PowerRating),
(
PALM |
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Chart |
News |
PowerRating)
Marvel
(
MRVL |
Quote |
Chart |
News |
PowerRating) is testing its highs once
again after forming a three day micro-cup pattern. If it is strong enough to
close above Friday’s intraday high, watch for a continuation move on Wednesday.
The volume has been picking up in the last few days, suggesting that there is
some investor interest in the stock. The stock is a bit extended since breaking
out the first time in mid-August, so perhaps only more aggressive traders will
want to consider opening positions.
Energy Conversion Devices
(
ENER |
Quote |
Chart |
News |
PowerRating) may be
moving because of Fuel Cell
(
FCEL |
Quote |
Chart |
News |
PowerRating). While Fuel Cell is already very
extended and parabolic, ENER has just broken through its previous high. If the
stock is strong, it will be able to close at a new high.. Should this occur,
watch for another move higher on Wednesday. If it retraces, it may find support
at Monday’s intraday high, which was a resistance level, based on the June
activity. This group, including FCEL and ENER is not for the faint of
heart.Â
Palm
(
PALM |
Quote |
Chart |
News |
PowerRating) is setting up for the
low-level traders out there. Palm has been rallying since bottoming out around
20. Watch for a close above the resistance level highlighted below. This may
offer a long opportunity. Watch for resistance near the peaks near the left side
of the chart, as they might be trouble spots.
Until later,Â