Rearing Its Ugly Shoulder
As the Nasdaq follows through downward, so too are
some of the chief glamour stocks that seemed to be hopeful prospects during the
summer. Today is a pivotal one for a number of stocks.
Take JDS Uniphase,
(
JDSU |
Quote |
Chart |
News |
PowerRating) for example. JDSU broke
decisively below a three-month trendline and, at the time of this writing, is
looking to close near its low of the day. The breakdown is not on
extraordinary volume, which tells me that there isn’t exactly a massive run to
the exits going on. Given this, a downside follow-through is far from a foregone
conclusion. But if we see a dive with volume surging, the potential head-and-shoulders top shown above could rear its ugly head.
Have a great weekend,
Eddie
Au bientôt, Mr. Marder