Hoku Scientific, Inc. (Public, NASDAQ:HOKU) - Chart Analysis

HOKU has had a nice run since mid-June. After topping up last week, we've had a 50% retracement of the last leg up. Today's hammer closed on the rising 10 DMA and could foreshadow a reversal back up. Support levels include the gap between the two blue lines, followed by the $10.00 pivot point (green line). This week's retracement was on declining volume which bodes well for a retracement versus a reversal.

It will be important to monitor price and volume on the next leg up - a lower high would signify a prolonged consolidation or possible reversal.

Q2 earnings are scheduled for July 24th AH and, will no doubt have an impact on share price going forward.

Technical Trade of the Day - Continental Airlines, Inc. (Public, NYSE:CAL)

CAL is a technical trade. As highlighted last night, CAL is setting up for a breakout on a breach of $38.00. In the meantime it attempts to bounce and sets up a perfect rising channel breach. Don't take the trade immediately on the breach as these types of setups are prone to bear traps. Wait until price takes out the previous bar low.

Technical Trade Setups - CAL, GES, MNST, NT

Click on charts to enlarge

Technical Trade of the Day - Continental Airlines, Inc. (Public, NYSE:CAL)

CAL was a low risk short on a trendline break. The target was a 62% retracement of the move from yesterday's low to today's high. I took a partial when price tested the morning low (50% retracement level) and covered the balance into the close. The target was almost reached.

Looking at the daily timeframe below, we can see that CAL has carved out a H&S top and is about to break down. The rally yesterday and this morning can be classified as a dead cat bounce and that is why this technical trendline break was so easy to spot. Regular readers know that CAL is one of my usual suspects. If the bears maintain control over the coming days and weeks and you are looking for a short, it might be a good idea to keep CAL on your radar.

Update - Varian Semiconductor (VSEA)

Varian Semi awarded largest service contract in its history by major U.S. logic chipmaker

Co announces it has been awarded two service contracts by a major U.S. logic chipmaker totaling more than $30 mln. Under terms of the contracts, Varian Semiconductor will provide comprehensive service and support to this customer covering a multitude of VIISta single wafer medium and high current ion implanters at a 300mm and a 200mm wafer processing fab. The contracts include world-class 24X7, 365 days-a-year support by VSEA's dedicated onsite engineers. (Courtesy of Briefing.com)

Currently gapping up to $51.05

Watch List - ICE, FLML, CAL

Technical Trade Idea - Broadcom Corp. (NASDAQ: BRCM)

Click on chart to enlarge

BRCM - next earnings release Feb. 8th.

Today's tag of the broken lower channel line was a prime opportunity to short BRCM. If it can take out this week's low, the next target will be $27.00.

NASDAQ Technical Picture - Bulls Taking Back Control

Renewed optimism from some tech bellwethers such as SUNW and YHOO brought a wave of buyers back into the NASDAQ. The NASDAQ completed a bullish three day morning star reversal pattern paced by internets and hardware. Look for possible continuation tomorrow on the heels of EBAY's $0.03 earnings beat (EBAY shares up 12% in AH). We are approaching resistance at 2475 again, so keep that in mind if we gap up on the open.

SanDisk Corporation (Public, NASDAQ:SNDK) Update

SNDK gapped up on the open but could not take out the 20 MA resistance level. Minutes after the open, it fell hard and never recovered, breaching support at $42.00 on a closing basis. It did not trigger a trade for me, but in retrospect the gap fade would have been a very good trade here.

Dummy Trade of the Day - MasterCard Incorporated (Public, NYSE:MA)

MA had a technical bounce from a gap fill dating back to Nov. 10-13. The high on Nov. 10th was exactly $90.50, matching the low on today's wide range, opening bar. However, there was no low risk entry so I decided to let it go. I checked back during lunch to observe the consolidation and decided to watch it closely in the afternoon. Around mid-afternoon, a low risk dummy setup presented itself and I jumped in.

I noticed a strong uptick in volume in ENER on a retest of the morning low. I checked Briefing.com for any news and they had just posted some bullish comments from a boutique firm. Usually, Briefing is late posting comments and I was surprised that I was able to catch this one so early. I took a long entry on a break of the doji high. I booked my profit as price approached the upper level of the resistance zone. This is a scalp so I prefer taking profits before they disappear.

Technical Trade Idea - SanDisk Corporation (Public, NASDAQ:SNDK)

Bearish flag alert on SNDK. I'm watching for a high volume break of $44.50.

Technical Trade Idea - Akamai Technologies Public, NASDAQ:AKAM)

Technical Trade Idea - CheckFree Corporation (Public NASDAQ:CKFR)

I am adding CKFR to my watchlist here. It looks like sellers can't move price any lower. Tuesday's NR7 bar was followed by a bullish engulfing bar yesterday. I'll buy a tradable pullback if support holds, or a breakout above yesterday's high. My short-term target is $40.00.

Technical Trade Ideas - Eagle Materials, Inc. (Public, NYSE:EXP)

EXP gapped up last week on blow out earnings. It has since consolidated its gap by carving out a shallow bullish base (U shape) at $40.00 resistance. The ADX momentum indicator has a very bullish steep curve as well. Look for a high volume break of $40.00. The short-term target is $42.50, followed by $47.50.

Technical Trade Ideas - Techwell, Inc. (Public, NASDAQ:TWLL), SanDisk Corporation (Public, NASDAQ:SNDK)

TWLL was a high volume gapper on Friday after reporting earnings Thursday night. See the perfect dummy setup in mid-afternoon on the chart below. Could be a momentum play with no resistance once $17.00 is taken out.


SNDK is coming into notable support at $45.65. Look for a potential reversal to setup.

NASDAQ Technical Picture - Bulls Scramble

The NASDAQ was hit with a heavy dose of selling and the bulls got caught. After yesterday's surprising low PMI, investors are paying more attention to the economic data. This morning's lower than expected ISM index - 51.2% vs 53% consensus, sent a clear message that the economy is really slowing down. So investors decided to take profits. The selling was broad based and all tech sectors participated with disk drive, semis, and networking pacing the way down. The NASDAQ carved out a WR bearish engulfing bar on higher volume, but at the end of the day it managed to observe the 20 EMA as support on a closing basis. The next support level is 2325, followed by 2300. Tomorrow's economic data includes Initial Claims at 8:30 EST and Factory Orders at 10:00.

Watch List - Semis - XLNX, MRVL, KLAC, and NVDA

Click on charts to enlarge and read chart notes.

All of the above names are well positioned to move higher. NVDA is approaching all time highs, however its earnings report is still unscheduled as far as I know. KLAC and XLNX have already reported. MRVL is the subject of takeover rumours.

Technical Trade Ideas - (NYSE:TIE), (NYSE:X)

Both TIE and X are well positioned for a potential consolidation breakouts following three days of narrow rnage trading. Notice that both stocks carved out higher lows on Friday. Also notice that last Tuesday both stocks had a high volume price expansion following NR7 bars.

Trade of the Day - NASDAQ 100 Trust Shares (ETF) (Public, NASDAQ:QQQQ)

The QQQQs gapped lower on the open following weaker than expected GDP numbers. Shortly after, they started to consolidate and over a period of a few hours, managed to close the gap. The consolidation took the form of a bearish rising wedge. Shortly after 1:00 p.m. EST, the wedge broke and the Qs fell down. I shorted at $42.65 and covered at $42.20.

Between 1:00 and 2:00 ET, it was reported that Goldman Sachs was cutting their growth forecast for motherboard shipments. After the broker reportedly said motherboard demand is "falling off a cliff," tech stocks did just that. Courtesy of Briefing.com

Technical Trade Idea - Citrix Systems, Inc. (Public, NASDAQ:CTXS)

After capitulating on lower than expected earnings last week, CTXS has bounced back to a notable resistance area ($30.00). Will it break resistance and rally back towards $32.00 and its declining 10 day EMA, or will it reverse and head south again?