The Dark Before Dawn?
The downgrade of Cisco Systems
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bottom. As the saying goes, “it is always darkest before the dawn.”
Today’s Watchlist:Â
(
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(
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Last week I mentioned Yahoo
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as a potential short based on a break of the key support level at 100. On
Wednesday it took out that level and fell another 10 points. While aggressive
traders may have profited off this initial move, others may not have jumped in,
or should I say, jumped off. Consider watching for a continuation move below
Wednesday’s intraday low to offer a second short opportunity. The ADX reading on
YHOO is 34, suggesting that the move may have more to come.
Copper Mountain
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pulling back from its lows all of last week. Unfortunately, it was unable to
take out any of the newfound resistance levels. On Tuesday it gave back a week’s
worth of gains in one day. This move, and the break below near-term support on
strong volume, sets us up for a short opportunity. At this point, we will monitor
the stock for a continuation move. Set your alerts near Tuesday’s intraday
low and watch for a second volume-backed move. Keep your eye on the
five-minute charts if it touches this level and look to see if volume picks up
when this point is tested.
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Until later,Â