Stick With The Sectors
Intraday Update – The
Nasdaq
We’re seeing a lot of activity from many of the big names on the Nasdaq. The focus remains in the B2B group and
the nets. Earnings expectations and announcements are moving stocks. Daytraders
should continue to focus on the hot stocks. Watch for intraday setups and look
for potential moves during the last hour of trading. At press time, the Nasdaq
was trading just under 4280.
In Trading the Techs AM on Tuesday, I’ll take a look at the OEX for you index
option traders out there.
Today’s Watchlist:
(
INAP |
Quote |
Chart |
News |
PowerRating),
(
SCNT |
Quote |
Chart |
News |
PowerRating),
(
JBL |
Quote |
Chart |
News |
PowerRating),
(
FAST |
Quote |
Chart |
News |
PowerRating),
(
PWAV |
Quote |
Chart |
News |
PowerRating)
Internap Network Services
(
INAP |
Quote |
Chart |
News |
PowerRating) broke out of a low-level pattern on Friday and is showing an inside
day on Monday. An inside day is often considered a potential continuation
pattern, but nothing is guaranteed, so watch for the actual move. Look for
another move above Friday’s intraday high. Although Friday’s volume was
strong, Monday’s is not that exciting.
Scient
(
SCNT |
Quote |
Chart |
News |
PowerRating) rallied strongly on Thursday and Friday on strong
volume. On Monday, volume is strong-than-average, but not yet explosive.
Scient is also showing an inside day, which may be a sign of simply a pause. We
will monitor SCNT for a move above the breakout level highlighted on the chart
below. As always, watch for volume-backed moves. Wait for confirmation of the
move and avoid speculation.
Jabil Circuits
(
JBL |
Quote |
Chart |
News |
PowerRating) is consolidating near its all-time
highs. After breaking out of a slightly uptrending price channel, JBL surged
higher on a three day move. Now we’ll watch for a move above the all-time high
to offer potential entry points. Remember, the consolidation pattern is an
unbiased pattern relative to direction. Thus, set yourself up for a potential
move down as well as a breakout to the upside.Â
Fastenal
(
FAST |
Quote |
Chart |
News |
PowerRating) is tracing out a low-level cup pattern on the daily charts.
After eclipsing its 50-day MA last week it entered a near-term consolidation
pattern. Of course, this pattern could last for weeks, but for now it remains
only a near-term pattern. Watch for a move outside of the formation. Should it
break out to the upside, I’ve highlighted a potential resistance level not
far above. In the case of a downside break, watch for a retracement to the
50-day MA. Note that the average daily range of FAST is not as wide as many of
the high-flying techs.
Power Wave
(
PWAV |
Quote |
Chart |
News |
PowerRating) was once a high-flying tech stock. Now, like many stocks, it has pulled back significantly. As it trades near a key support level, we’ll
watch for a potential shorting opportunity. Watch for a closing move below the
support level. Note the slow stairstep pattern that has formed on the way down.
Countertrend traders may want to watch for a bounce off support into near-term
resistance. Other traders should continue to wait for the closing break. There
has not been any follow through on the high-volume news-driven move from Friday.
Until later,Â
Remember to use
protective stops on every trade.
Do you have a follow-up question about
something in this column or other questions about trading stocks, futures,
options or funds? Let our expert contributors provide answers in the
TradingMarkets Question & Answer section! E-mail your question to questions@tradingmarkets.com.
For the latest answers to subscriber questions, check out the Q&A section,
linked at the bottom-right section of the TradingMarkets.com home page.