Will The Bounce Hold?

The overnight action in Apple Computer
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AAPL |
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PowerRating)
shows just how weak this
market is. The harsh reaction to the earnings warning shows that investors will
bail out at the first sign of weakness. The bright spot on Thursday was the
bounce off the 3650 line, but will it hold today?

I expect to see volume dwindle as traders leave the floor for the holiday.

Today’s Watchlist: 
(
SEBL |
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PowerRating)
,
(
SPOT |
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PowerRating)
,
(
PLCM |
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PowerRating)

Siebel Systems
(
SEBL |
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PowerRating)

has really been a leader in the tech market for some time now. The price bar
from Monday looked like a key reversal signal, but the pullback that followed on
Tuesday set up a near-term trendline for the next three trading sessions. On
Thursday we saw a solid move into blue sky territory. What to do now? Per the
usual method, we will watch for a continuation move on Friday to take it over
the intraday high from Thursday. I was glad to see it close a bit off its highs,
to provide a bit of morning breathing room.

PolyCom
(
PLCM |
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PowerRating)
rallies quickly off its near-term lows
without hesitation. After the strong two-day move, it entered a two-day
consolidation. Thursday’s move was the first continuation move that we were
awaiting. Unfortunately, the new-high close was done on thin trade, relative to
the previous moves. Use caution when looking for the near-term trend to
continue. One nice trait of the stock is the lack of gaps near the open.

 

PanAmSat
(
SPOT |
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News |
PowerRating)
looked like it was going to close at a new
low on Thursday, but the buyers came to the rescue. Heavy trading and a weak
close on Thursday leaves SPOT poised to head lower. A majority of the near-term
consolidation has been on consistent volume. Set your alerts near the intraday
low from Thursday to prepare yourself for such a move. 

 


Until later, 

Dave Baker