Wednesday, September 15, 2010

Technical Picture - Minor Gains

Weaker than expected economic data set the stage for a gap down on the open. However, trading range supports held as depicted on the SPY and QQQQ charts above. The SPY opening gap was filled within the first hour of trade, after which it was slow grind until the final hour, when the Qs managed to take out the PDH. All major US markets closed in the green, near the highs of the session, but the overall gains were minor.

Leadership came through health and medical, disk drive, hardware, airlines. Weakness was noted in crude, steel, solar, and gold. Leading stocks are acting well.

Tomorrow's economic data starts off with initial claims and PPI in pre-market, followed by Philly Fed at 10:00. RIMM reports earnings tomorrow, after hours.

MA was news related gap up (share re-purchase plan). After a bullish opening range, price consolidated the gap through time, forming a bullish flag pattern. Place fibs from low to high of pattern to establish target for measured move.

The second breakout bar carved out a bearish engulfing stick, but was quickly neutralized back to BE. After that, price expanded in the right direction.

After breaking out last Friday, RIG has consolidated in the upper range. Today's close near the range top, foreshadows an extension soon.

RIG's early strength this morning was looking good for a BO, however, the sloppy basing pattern (wide shadows on 15 min.) set up a fast move back down to intraday support.

Price quickly stabilized and I entered long for a retest of range top.

ADBE has consolidated last week's bullish gap and looks ripe to expand higher very soon.

PRGO (discussed last night) - preliminary target was met today, so I sold my remaining shares. It needs to consolidate, but if the markets BO, it will likely go higher as well.

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