Shazaam!
Did you see what happened when the transcript of Greenspan’s
speech went public? The futures skyrocketed. It’s simply amazing how people
react to news. It’s quite clear what the advances in information distribution
have done to the market. Of course, that does make it more exciting for
daytraders. Daytraders should continue to focus on reversal patterns and
intraday setups. Swing traders should use a move conservative strategy while the
market is choppy.
Looking at the Nasdaq Composite, I’m seeing a rally out of a
three-day pullback. Watch for a close outside of the short-term channel.
Today’s Watchlist: [TIBX|TIBX|,
(
TLGD |
Quote |
Chart |
News |
PowerRating),
(
CMTN |
Quote |
Chart |
News |
PowerRating),
(
UIS |
Quote |
Chart |
News |
PowerRating),
(
ORCT |
Quote |
Chart |
News |
PowerRating)
Tibco Software
(
TIBX |
Quote |
Chart |
News |
PowerRating)
was moving in an uptrending channel all throughout Jun and early July. Currently
we see is moving in a new chaannel in the opposite direction. The new downward
channel may just be a short-term counter-trend move. Of course, we won’t know
until it breaks out one way or the other. Watch for a break from the near-term
channel to provide either a short or long opportunity. On Tuesday, it’s
starting to rally a bit. The stock is far off many of its key MAs.
Tollgrade
(
TLGD |
Quote |
Chart |
News |
PowerRating) was in a counter-trend channel. It traded
back down off its highs to the longer-term trend. On Tuesday we see a move out
of the channel and a small rally to the upside. Watch for some resistance just
over 140. Despite the lack of a pole, this pattern could be considered a bullish
pennant, based on the move to the upside on Tuesday. The descending volume on
the pullback days was a positive sign. Watch for strong volume on Tuesday during
the rally.
Copper Mountain
(
CMTN |
Quote |
Chart |
News |
PowerRating) gapped lower on bad earnings. On
Tuesday it’s been showing an inside day. Should it break the near-term
support-level that I highlighted below, watch for a bounce near the 50-day MA.
Make sure to take note of the series of higher lows, despite the recent
pullback.
On the short side we have two lower-priced stocks.
Unisys
(
UIS |
Quote |
Chart |
News |
PowerRating) gapped lower on July 2 and moved into a
downtrending channel. After trending lower for some time it broke down and left
the channel. We saw a continuation move on Wednesday. On Thursday we’ll watch
for a move below 10 to provide potential short opportunity. The number 10 is
known for providing psychological support. Watch you level II for buyers at 10.
As I write this article, its trading not far above this key support level.
Orckit
(
ORCT |
Quote |
Chart |
News |
PowerRating) gapped lower on bad news three weeks ago. It’s been
consolidating for roughly two weeks and close below the bottom of the congestion
on Wednesday. Watch for another move lower. As I noted above as well, watch for
possible support to come in at 10. I monitor my level II screens closely when a
stock hits a key level such as 10. Note the descending volume during the
consolidation. Watch for a volume-backed continuation move. Because the move was
not backed by volume on Wednesday, it may be simply a false breakdown.
Until later,Â
Check back at 2:00PM ET
for Trading the Techs PM.