Friday Should Be Interesting
Occasionally, you’ll find a pocket of strength
within a weak market in which there seems to be more than meets the
eye.Â
I see something happening in Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) which is very interesting
from a technical standpoint because it hints that there are fundamental
undercurrents that may positively affect QCOM business interests in the future.
QCOM is trying to break out of a five-month base. Volume is not that heavy
Thursday, but there have been some price surges on heavy volume over the past
two months–strongly suggesting that institutions have been heavy buyers. Also a
surge like this is a big accomplishment on a day when the Naz is weak and
getting weaker (as of the time of this writing). This is a good illustration the
concept of intraday relative strength which Jeff Cooper talked about in his
trading lesson “Finding
the Next Hour’s Winners Using Intraday RS.” If the market turns
positive going into the close, QCOM could get an extra boost.
As I write this QCOM is surging and trying to drill through its
200-day moving average.Â
What’s the news? There’s nothing official. But there is
speculation that QCOM will benefit from this morning’s resignation of the
president of Korea Telecom. This is occurring against the backdrop talk that
China will eventually adopt QCOM’s CDMA as its primary wireless communications
protocol.Â
I’m not one to advocate trading off news.
But looking at the chart, there may be some major players who are doing just that.
Also their commitment of millions of dollars suggests that they may know
something I don’t.
Friday should be interesting,