The selling pressure continues this morning. Here are the percentage drops for the ETF proxies of the major indices — QQQQ is down 0.84%, SPY is down 0.57% and DIA is down 0.5%. They’re all still above Friday’s lows, which I suspect will be tested this morning.
As you can see from the following charts, the selling pressure never really let up, even with Friday’s bounce. Note that there are no significant higher highs on either chart:
This is an intraday view of the Nasdaq with hourly candles. Note that the moving averages are still bearish — sloping down and the faster average (5 period exponential) is below the slower one (10 period exponential).
For those who are struggling in this market, remember that capital preservation is key. Don’t let a one or two week sell off take you out of the game.
Potential swing trades:
See one of the recent ‘Chart Reading‘ posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
TRID -8.5% (options grant method mentioned in WSJ), TNT -8% (extends recent decline), OPWV -7.9% (receives informal SEC inquiry), LFC -6.8% (profit taking after huge run), ABB -5.9% (extends recent decline), PWAV -4.6% (weakness at Cingular are negative for PWAV – Jefferies) ASEI -4.4% (target cut to $50 at Jefferies), PEIX -4.1% (extends recent weakness), ATML -3.9%, UMC -3.4%, KLAC -5.2% (mentioned in WSJ showing questionable options pattern), MED -3% (profit taking after recent strong move), GLW -3% (provides guidance), EWS -3%, CCL -2.5% (extends recent decline)… Indian stocks are weak on Indian stock market sell-off: TTM -12%, SIFY -4.9%, MT -4.6%… Gold/mining stocks are weak as commodity prices fall in pre-mkt: NXG -9.4%, TGB -8.5%, GOLD -6.7%, BHP -5.5%, EZM -5%, AAUK -5%, NTO -4%, RTP -3.5%, KRY -2.8%, AU -2.7%, AUY -2.2%… Metal stocks also extend recent weakness: TS -4.8%, TIE -4.4%, ATI -3.3%… Under $3: SFE -18%, GTE -11%.
Gapping Up
Gapping up on strong earnings/guidance: PACT +6.7%, LOW +1.7%… Other News: RSAS +4.5% (bounces after 12% drop on Friday), VPHM +2.5% (presents HCV-796 Phase 1b data), YHOO +2.5% (mentioned positively in Barron’s), TLAB +2.4% (mentioned in Barron’s and Mad Money), KBH +2.3%, SBUX +1.5% (UBS upgrade), JNPR +1.4% (Bear Stearns upgrade), MFLX +1.1% (Morgan Stanley defends stock after recent sell-off)… Under $3: TMTA +10% (announces it has developed chip for Microsoft FlexGo), NYER +8%, WGAT +5%.
Disclaimer & How I use this list
