Wedgie
The Morgan Stanley High-Tech Index is an index of 35 tech
stocks. The index was mimicking the action in the Nasdaq for some time, but is
currently showing a slightly different pattern. The series of higher lows and
lower highs is closing in, forming an upward trending wedge. As the wedge begins
to close, we will watch for a strong move out of the pattern. Of course, it has
some time to go.
Â
Today’s Watchlist:Â
(
AUD |
Quote |
Chart |
News |
PowerRating),
(
IMCL |
Quote |
Chart |
News |
PowerRating),
(
ANTC |
Quote |
Chart |
News |
PowerRating)
It is not easy to find a stock that is
steadily trending in this market. Automatic Data Processing is such a stock.
Since taking out its former highs, it has been trending higher in a tight range.
The repeated bounces off the trendlines provide numerous entry points.
Unfortunately, the tight range may only offer limited profits on each move. Yet
unlike may high-flying tech names, AUD is moving rather conservatively, thus
suiting the trading style of many traders out there.
ImClone Systems
(
IMCL |
Quote |
Chart |
News |
PowerRating) broke out from a
low-level consolidating pattern on Thursday. After trading in a wide range for
over five months, it finally moved and closed above resistance. This
breakout brings IMCL to the Watchlist so that we can watch for a continuation
move on Friday. Key to this setup is the high-volume move. While volume has
been somewhat tame for the last month, the action on Thursday was backed by
heavy trade.
On the short-side, Antec
(
ANTC |
Quote |
Chart |
News |
PowerRating) closed below
support for the first time in months after setting a series of lower highs
rally after rally. Throughout September, ANTC has showed continued weakness.
Look for a continuation of the current trend to take the stock even lower.
Unlike the move in IMCL, this last leg down was not backed by volume, so be
careful.
Until later,Â