Saw, Whipsaw
By 9:41 AM ET, the Nasdaq futures had already filled the gap. By 9:50AM ,
they reversed again to set a new low at 10:00AM. By 10:30AM, they had formed a
W-bottom.
I do not know about you, but just the thought of that rollercoaster exhausts
me.Â
Today’s Watchlist:Â
(
ELNT |
Quote |
Chart |
News |
PowerRating),
(
QCOM |
Quote |
Chart |
News |
PowerRating)
Starting with an intraday chart,
Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) has formed a pennant pattern. Watch for a breakout in
either direction. On the long side, look for a move above the intraday high, set
near 10:20AM.
I always love it when I see a chart with two patterns forming at
the same time. Elantec Semiconductor
(
ELNT |
Quote |
Chart |
News |
PowerRating) hit a new high on Thursday
after forming, what is by my definition, a cup pattern. On Friday, set your
alerts for a move above Thursday’s intraday high, based on this chart pattern.
The second pattern forming shows the stock at a near-term top.
The channel formation, which I find a bit more difficult to trade, tells us that
it’s time for a pullback. With this formation, the goal is to take advantage of
bounces off trendlines. Based on this formation, we should look for a pullback
toward roughly 100. Set your alerts all through the channel and watch for a
pullback. In a perfect world, it will retrace on light volume and rally back on
strong volume. Notes that the average daily volume of ELNT is about 650,000
shares.
Â
Until later,