Shorts 28, Longs 2
The first question we should ask is, “How is the volume today?” The Nasdaq has
traded roughly 1.232 billion, and the NYSE has traded roughly 750 million
shares. The volume is not impressive. But, nonetheless, we are approaching my
target of 2550 on the Nasdaq Comp. I’m still targeting 2480 on the Nasdaq 100.
Does this mean I will jump in with both feet when these points are reached? Absolutely
not! It is just a target area, we will first need some sort of confirmation
of any bounce.Â
Once again, the SOX confirmed the top in the Nasdaq this morning.
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First, I want to start off with a quick
look at Qualcomm
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PowerRating), which failed to break out from the cup-with-handle
pattern. Despite recent market volatility, it has reclaimed the trendline that
was guiding it higher. Watch for a close above this level to keep it on our watch
list.
Updating our JDSU
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PowerRating) short play from Tuesday, we see
the stock is trading near 55 now. Remember to trail your stops. For reference,
the short entry area was 62.
Today was definitely a good day to be short. Checkpoint Software
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PowerRating) broke support just over 100 from both the daily and weekly charts.
While it has bounced off the low of the day, 91, it is currently only trading
near 96. If it closes below support, watch for a continuation move below
Wednesday’s intraday low. Of course, if you have never followed Checkpoint
before, I suggest that you first look at the three-minute chart to see just how
volatile (or shall I say crazy) it really is. In fact, in the two minutes that
it took me to write this paragraph, the stock has moved 2 points. Watch this
name for the rest of the day and tomorrow.
Otherwise, my outlook for the day remains bearish. This is not
to say that the market will plummet into oblivion, just that I cannot see a
major rally quite yet.
