Indian internet stocks offer big rewards
(
SIFY |
Quote |
Chart |
News |
PowerRating) made a
significant breakout at at the $6.25 gap fill break on 11/16/05. We
played the long side break up to $7.40 – $7.50 resistance levels from $6.25.
SIFY finally cleared the 7.60 resistance level on 12/6/05 to set up a daily pup
breakout. We took SIFY longs again on 12/9/06 at $8.15 – $8.25 levels for a
daily mini pup on the pup breakout. SIFY is a laggard to
(
REDF |
Quote |
Chart |
News |
PowerRating) which is
another India based internet company breaking all time highs. We are looking for
low teens on SIFY into the end of the month, first target $9.50 – $10 and then
up to $12.50 as both internet companies should be ripe for window dressing
buying into the end of the year.
The noodles (Nasdaq 100 e-minis March contracts)
are now in a very tight consolidation with daily 5 and 15-period moving averages
at 1711 x 1712.50. This will usually mean intraday volatility in the 10-20 point
range for a few days before a trend move kicks in. It’s extremely important to
remember to pace yourself in the coming days as morning trends can and likely
will reverse by the afternoon.
Expect tightness and chop early next week for the
overall market. Will update on Tuesday as to whether we set up any type of
breaks on the daily. Good trading!
Jea Yu
Jea Yu has been involved with the
equities markets for over 10-years. He specializes with intraday trading in the
U.S. equities and futures markets. To receive a free 7 day trial to Jea Yu’s
Underground Trading Pit,
click here or call 888.484.8220, ext. 1.