Clockwork Reversal
The Qs have provided some nice
early morning volatility today having
bounced off early exhaustion gap extremes courtesy of yet another "we’re
not quite out of the woods yet" earnings preview, this time by Ciena
(
CIEN |
Quote |
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PowerRating),
and then reversing like clockwork into the current hourly downtrend on the
approach toward resistance. Long opportunities of course remain contra-trend
trades until such time the Qs can clear established resistance points, of which
there are many. With respect to positioning for longer-term reversal potential,
I’ll be watching to see if the lesser time periods hold supports and provide
sufficient strength to break the current downtrends, along with any emerging cup-and-handle
formations which often accompany reversals.
Tuesday February
5, 2002 12:00 PM EDT
Good Trading.