Shed Some Light
Will someone please please tell me who listens to an analyst that downgrades
Lucent after it falls over 60%? Much like my confusion over who is listening to
the analyst who commented on Ebay yesterday, I remain perplexed. I try to give
investors more credit than this, but one has to wonder.
On that note, the Ebay
short from this morning paid off for a few points. While it is positive now,
I know that everyone trailed their stops.
As for the state of the Nasdaq, the three-minute chart shows a potential
cup-with-handle formation. Unfortunately, by the time this article goes to
press, it will be a broken pattern.
Today’s Watchlist:Â
(
XLNX |
Quote |
Chart |
News |
PowerRating)
One sector that has simply been slammed day after day is the
semis. Thus, it is only logical to look for shorts in this group.
Xilinx
(
XLNX |
Quote |
Chart |
News |
PowerRating), which is down another 10% on Tuesday, is poised to break
below support. It is currently trading near its October low thanks to another
gap lower on Tuesday. While long-term investors in Xilinx are likely not happy,
daytraders should be, as this is a rather pure setup. Watch for a close below
support to offer a short opportunity on Wednesday. If it manages to close at or
below this level, set your alerts this evening to prepare for a move under
Tuesday’s intraday low. More aggressive traders may want to watch for a short
opportunity based on a break of support today. If you do take a position, be
careful of covering by the close. Many stocks have a tendency to break out of
break down and then fail on the same day.
The intraday chart shows a consolidation at the lows.
Until later,