Thursday, September 28, 2006

NASDAQ Technical Picture - Narrow Range Trading

Another NR day as Wall Street waits for a catalyst to push the DOW 30 to its milestone high. Meanwhile the NASDAQ carved out a hammer type bar which could turn into a hanging man. Well, that was my best scenario until I saw RIMM's earnings and guidance after the close. RIMM is testing all time highs in after hours trading at $103.00. PALM is also up in sympathy. So the wireless sector will be hot tomorrow. The SOX snapped back today and we have some potential breakouts lining up again in the semi sector.

The NDX winners today were EBAY, AKAM (another multi-year high) and BRCM (poised for a 3 day consolidation breakout). The losers were QCOM, CHKP and ATVI. I'm still cautious hoping that the achievement of the much anticipated and overrated milestone does not signal a massive selloff.

No comments: