You Make The Market
The action in The 100 simply is not pretty. The best we can do
(for the longer-term bulls) is to hope that this bounce is for real. I do not
mind seeing a small pullback following a move like we saw on Friday, but I am
really looking for a series of higher highs and higher lows. I still remain
near-term bearish. But, like the tech sector, this view can change overnight. To
start, I am looking for series of closes over the 3500 area. On the other hand,
a strong move below 3000 may offer a beautiful short opportunity.Â
If you are a daytrader like myself, do not let yourself be
distracted by the action in the broader market. Continue focus on individual
stocks.Â
At the conference this weekend, traders heard me say that I hate
to short stocks (futures and options I do not mind). Trade within your own
personality and not based on the market. Just like Friday, I played on the long
side again today.Â
There is always something out there.
Â
Today’s Tech Watchlist:Â
(
EXTR |
Quote |
Chart |
News |
PowerRating),
(
JNPR |
Quote |
Chart |
News |
PowerRating)
Extreme Networks
(
EXTR |
Quote |
Chart |
News |
PowerRating)
pulled back a bit after its recent run, but has held strong. In this market,
that is impressive. On Friday it rallied out of the consolidation pattern that
it entered following the pullback. On Monday it continues to move higher. If you
are not a lower-level player and missed the move out of the consolidation, do
not worry, as more setups are pending. At this point, let’s watch for the cup
pattern that is forming to complete itself. Set your alerts near the highs from
September and wait for a retest.
Juniper Networks
(
JNPR |
Quote |
Chart |
News |
PowerRating) has actually completed the cup
pattern that EXTR is setting up. On Monday it broke out above resistance. What
to do now? Watch for a new closing high followed by continuation move above
Monday’s intraday high on Tuesday. The volume on Monday is on track to be quite
strong, which would continue the trend of the last few days, where JNPR has
moved on heavy trading.
Until later,Â