Stick With Strength
Despite the overall market weakness, we are still seeing leadership by some
of the big boys. Until we have a clearly defined trend, we should focus only on
the strongest stocks. In a strong trend, the market is more forgiving, so it’s
easier to buy pullbacks. At this time, pullback trading is difficult.
Let’s look at some of these strong names.
Today’s Watchlist:Â Â
(
ARBA |
Quote |
Chart |
News |
PowerRating),
(
JNPR |
Quote |
Chart |
News |
PowerRating),
(
MVSN |
Quote |
Chart |
News |
PowerRating)
The green line on the charts is the 200-day MA and the blue line is the
50-day MA.
Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating) broke out from a consolidation on Thursday following a gap.
Ideally, we will see a high-volume session, as well as a close within the top
10% of the day’s range. If this strong-move scenario pans out, then we will watch
for a continuation move above Thursday’s intraday high. Daytraders may be
inclined to watch for intraday setups, but because of broader market dynamics,
there may be quite a few shakeouts. Use extra caution when trading intraday.
Juniper
(
JNPR |
Quote |
Chart |
News |
PowerRating) broke out to a new high on Tuesday, continued higher on
Wednesday, and then reversed. We will add this to the Watchlist because of
Wednesday’s close, which held above the breakout level set on July 14. If we see
an inside day on Thursday, then we will watch for followthrough on Friday. This
setup will be invalidated if we see a close below the July 14 high. If you are
watching the intraday setup, make sure to look at the five-minute chart from
Wednesday, to find daytrading resistance levels.
Macrovision
(
MVSN |
Quote |
Chart |
News |
PowerRating) broke out from a very long uptrending channel. The new
high set on Wednesday took out the previous high from March. With the recent
volume pickup, this move may have some strength. Watch for a three-day move
higher followed by a possible retracement. Intraday players should watch this
one too, as traders are more likely to buy strongly trending stocks on
pullbacks.
Until later,Â
Check back at 2:00PM ET
for Trading the Techs PM.