SOX Overboard
The tech sector continues to show weakness. The Nasdaq just took out its
morning lows and the semiconductors broke down from a descending-triangle
formation. Be careful though. Lately, shorting the lows has been dangerous, and
the market often bounces off the lows. Most importantly, trail your stops.
Semiconductors, look out below…
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Today’s Watchlist:Â
(
QCOM |
Quote |
Chart |
News |
PowerRating)
Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) is a name that has
not been on my list for a quite a while. It has finally started to trace out a
pattern that I like, a cup-with-handle. After spending a few months basing and
one failed attempt at resistance, it is making another run at the troublespot.
As with any cup-with-handle, we will watch for a breakout about the lip. But,
because this is a low-level setup, we need to take note of other resistance
levels, which are, in this situation, the 200-day MA, near 89, and the gap area
from March and April, which is near 92 to 95.
Amazingly, Qualcomm is still green today.
Until later,