Tuesday, September 28, 2010

Technical Picture - Minor Gains

Opening spike down in bellwether AAPL set the tone for early trade. As we said last night, the weak close, left the door open for further downticks.

As you can see from the chart above, we shorted the break of closing lows and covered half at gap support. Price continued lower, almost reaching the second target which was a half gap fill.

Despite, notching minor new highs intraday, the markets could do further backing and filling. Watch the trendline off of today's lows to see if it holds as support.

Some large cap tech stock charts are still very unclear. AAPL's intraday 15 min. chart (below), for example, looks like the flash crash, so we need to take a cautious approach until all the backing and filling is done. Because if AAPL decides to go lower, it can affect the entire market.

We also need to see some more sector rotation. Now that semis are finally catching up, we need financials to kick in.


Ken said...

Hey Jamie,

You guys watching SNDK bear flag on daily? Like you said, semis have heated up but this one can't find a bid.


Jamie said...

Hey Ken,

I nibbled at SNDK last week hoping it would break out of its base at $36.00 but to no avail. I'm with you on the short.

Ken said...

Lol, one of strongest stocks in market today, go figure! Looks like it wants to test the daily trendline at 38.

Jamie said...

Yeah, scalped it for half a point. At this rate, it should be testing $40.00 resistance by tomorrow.

Jamie said...

On second thought, if this flagging at $38.20 holds, it could make a run for $40.00 today!

Ken said...

I did same as you probably, bought at 37 after the orig base and sold around for 1/2 pt. Looks like daily trendline going to hold for now, but 40 in the next few days def a possibility.

Anonymous said...

I hope you won't undestand this like spam, but as I see you're interested in technical trading, if you ever focus on spanish IBEX 35, I offer you this page: http://tradingibex.blogspot.com