Digesting QCOM
The Qs have been trading in a
rather tight range this morning, having
briefly broken its 13-minute downtrend only to have the hourly trend and yet
more accounting-related news knock it back toward opening price levels.
Specifically,
(
QCOM |
Quote |
Chart |
News |
PowerRating) — approximately 4% of the Qs — is trading down
sharply (off $3.00) as this column goes to press as the result of a CFRA (Center
for Financial Research & Analysis) report questioning the handling of
revenues in its 10K. Market volatility has declined somewhat compared to recent
days, which makes for a tougher trade, yet nervousness is still apparent as the
market tries to digest the midday QCOM news.
Friday February 8,
2002 12:00 PM EDT
At the risk of
sounding like a broken record, the Qs remain oversold near key Fibonnaci levels,
yet it will take a change in consensus and interested buyers as reflected in
trend reversals before longs are good for anything other than contra-trend
scalps. Given the extreme market, tight trailing stops are advised on any short
positions.
Good Trading and Have a Great Weekend!