Wednesday, April 20, 2011

Technical Picture - Tech Leads Markets Higher with Huge Gap

The markets gapped up sharply on the heels of good earnings from tech bellwether INTC +7.8%, as well as VMW, JNPR, and YHOO... Not much in the way of extensions for the indices, but only limited selling pressure off of the mid-morning highs.

After hours we got more favorable tech earnings from FFIV, QCOM and AAPL. Markets are extended very short-term.

There's a lot of talk about SLV being way overextended, but so far, it has managed to stay within its rising channel. I am waiting for a huge gap open which takes price beyond the upper channel line and well beyond the upper BB, setting up a short. We may get that tomorrow as SI_F is trading at $45.62 as I write this post.

This is a chart of AAPL post earnings. The profit taking in the second half of the after hours session is somewhat suspect. Will be interesting to see which support level will hold, if any?????

Day Trades

ALXN - Low risk, long entry ahead of earnings tomorrow morning.

RVBD - Support was holding and I couldn't resist the low risk setup.

NTES - Failed breakouts yesterday for NTES and SOHU set the stage for today's weakness. Another NR7 (low risk) setup.

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