Triquint
Within the first hour we saw a major run off the lows in the Nasdaq and then
a reversal. If you got in, I hope you got out.
As I have been mentioning for the last few weeks, the semiconductors are
really taking a beating. Knowing the trend of the entire group, I am often
suspect when I see one of them try to fight the trend.Â
In this case, the little trooper that is going against the grain is Triquint
(
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PowerRating). As the rest of the group dwindles south, Triquint continues to
consolidate just under a key resistance level. Of course, because it is trading
close to such a key level, I cannot be sure which way it is going. But, based on
the action in the rest of the group, I would be suspect of any breakout.Â
Let’s set up a game plan. Set your alerts for a strong move above the 44
area, where there is currently resistance. If it can manage to break out, we will
need to monitor for a move above the August consolidation pattern, which is also
likely to cause trouble (they always seem to do just that). On the other hand,
this may just be a great short opportunity. In that case, we will need to watch
for a break of the 38-39 area, which is roughly the low of the consolidation
pattern. The third way to trade it, which is not my personal style, it to sell
the top of the range and buy the bottom of the range.
With three possible setups, there is something for everyone.Â
Until later,