Despite Cramer's strong recommendation of NTAP and CTXS as potential stars of the next tech rally, I am posting this chart of NTAP because it looks well positioned to break as early as Monday. Next level of resistance is in the area of $41.00. CTXS has been on my watchlist for a while now and could also be a buy on an upside break of its current consolidation pattern.
Thursday THLD broke out of a four month base on three times average daily volume. I like how the ADX is curving up from a very low reading. This often foreshadows explosive moves. Let's see if THLD has legs.
SYNA broke its downtrend line on a closing basis on Monday. On Tuesday it gapped up on high volume. Since then, it has been consolidating its gains. I would like to see it pullback to $24.00 before resuming its uptrend. I'll be watching SYNA daily to see how it unfolds. Next earnings report is Thursday April 20th, AH.
TEK swung into action on Thursday, carving out a morning doji star reversal pattern. Look for further upside next week.
The street did not appreciate AMD's quarterly earnings report and there are many reasons to expect more selling next week including the gap down on extremely high volume and the fact that the stock closed on its lows and in so doing violated support. Short below Thursday's low of $31.60.N.B. I will be updating this post over the course of the long weekend.
7 comments:
AMD sounds like a good short Jamie... Cramer pumped it on Thursday which is a nice confirmation. I'll be watching. Was the market open on Friday in your world?
Glenn
Hi Glenn,
You're right about Cramer and no we were closed just like you. We follow the same religous holidays as you (Chistmas and Easter), but we celebrate Thanksgiving in October instead of November because we harvest earlier here.
I only mentioned that as you noted Friday's action on TEK and AMD. I live in the same country as you only on the wet coast :)
Glenn
Okay Glenn,
Thanks for pointing out the Friday error in that round about way. We had a wet coast kind of day here today, but Friday was sunny and almost summer like. It was so nice in fact, that it made me somewhat delirious and I forgot what day it was.
Hi Jamie
Like your blog and trading style.
A question about THLD - how do you play these kind of setups (a new high with volume spike)? Do you enter on the break of the high? Pre market high?
Thanks.
Shay
Hi Shay,
Thanks of the kind words. There are many ways to play this type of setup depending on how we open. Hopefully we will get a pullback to the breakout point which is $15.70. I noticed a slight down tick in AH Thursday.
If it starts to trade above Thursday's high in pre-market, wait a minute or two after the open to see if volume is strong and then try to get the best price.
If the bid and ask prices don't come together in the 9:25 - 9:30 timeframe, it usually signals a pullback before price moves higher, then you can key off of the 5 or 15 minute timeframe for a reversal pattern.
Good luck!
Thanks for your answear, Jamie.
Good luck to you too.
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