Post by DJF on Apr 2, 2004 21:03:00 GMT -5
Added to the website homepage - repeated here.
"Jobs report sparked heavy volume buying in all markets - although individually, stocks had a mixed day. SUNW was a big winner on huge volume on MSFT partnership deal. AKS negated a bearish inverse hammer earlier this week on strong volume today. NAVR made its break from a supply level on modest volume - a follow through gain on Monday would be very positive. PAAS continued to build on yesterday's breakout. SSRI looks poised to make a move upwards following two days of heavy buying - building on the strength of underlying silver. The latter is overextended in the short term, so it will be interesting to see how silver stocks fare once the inevitable pullback kicks in on the metal. LU, AMCC, AXO, AQNT, CGFW, CSCO, PCS all had good days - building on the weeks gains.
Unfortunately, a couple of this weeks breakouts foundered, including RATE, STG, and HANS - or look susceptible to profit taking (CHS, ADNW, NT, PWAV, SIRI). Will we see some sell on the news action next week? There should be some form of pullback after 7 days of solid % gains on minimal volume. Today was the first heavy volume rally since early January as the markets headed into supply zones, leaving large gap breakouts in the NASDAQ, and NASDAQ 100. Weakness on Monday to close these gaps will likely morph into a 3-9 day sideways consolidation to flush out remaining weak hands and trapped bulls caught by the March washout. Sideways/down action may be used by traders to grab cheap call options in the run up to April expiration.
Secondary market indicators continue to map the end of a consolidation, how these react on the next pullback will be important. The smart folk will have bought the test of the lower trendline in the NASDAQ consolidation, or the island reversa in the NASDAQ 100. Some of these folks will look to take some profits and wait in the wings for the next pullback to unfold. Watch for new breakouts, but don't chase anything that has already moved substantially earlier during the week - pullbacks are buying opportunities in such stocks. Contrarians might see today as a shorting opportunity - looking for breakout gaps in the tech indices to close as the market returns to Jan-Feb congestion levels. As always, price is your lead.
DD as always, DJF
Stockchart public list - please remember to vote! Currently adding a book feature to the site"
stockcharts.com/def/servlet/Favorites.CServlet?obj=ID446477&cmd=show[s10410419]&disp=O
votes: 25 hits: 402
"Jobs report sparked heavy volume buying in all markets - although individually, stocks had a mixed day. SUNW was a big winner on huge volume on MSFT partnership deal. AKS negated a bearish inverse hammer earlier this week on strong volume today. NAVR made its break from a supply level on modest volume - a follow through gain on Monday would be very positive. PAAS continued to build on yesterday's breakout. SSRI looks poised to make a move upwards following two days of heavy buying - building on the strength of underlying silver. The latter is overextended in the short term, so it will be interesting to see how silver stocks fare once the inevitable pullback kicks in on the metal. LU, AMCC, AXO, AQNT, CGFW, CSCO, PCS all had good days - building on the weeks gains.
Unfortunately, a couple of this weeks breakouts foundered, including RATE, STG, and HANS - or look susceptible to profit taking (CHS, ADNW, NT, PWAV, SIRI). Will we see some sell on the news action next week? There should be some form of pullback after 7 days of solid % gains on minimal volume. Today was the first heavy volume rally since early January as the markets headed into supply zones, leaving large gap breakouts in the NASDAQ, and NASDAQ 100. Weakness on Monday to close these gaps will likely morph into a 3-9 day sideways consolidation to flush out remaining weak hands and trapped bulls caught by the March washout. Sideways/down action may be used by traders to grab cheap call options in the run up to April expiration.
Secondary market indicators continue to map the end of a consolidation, how these react on the next pullback will be important. The smart folk will have bought the test of the lower trendline in the NASDAQ consolidation, or the island reversa in the NASDAQ 100. Some of these folks will look to take some profits and wait in the wings for the next pullback to unfold. Watch for new breakouts, but don't chase anything that has already moved substantially earlier during the week - pullbacks are buying opportunities in such stocks. Contrarians might see today as a shorting opportunity - looking for breakout gaps in the tech indices to close as the market returns to Jan-Feb congestion levels. As always, price is your lead.
DD as always, DJF
Stockchart public list - please remember to vote! Currently adding a book feature to the site"
stockcharts.com/def/servlet/Favorites.CServlet?obj=ID446477&cmd=show[s10410419]&disp=O
votes: 25 hits: 402