Posted by 22 January 2007

Jan. 22, 2007 Recap and Stocks to Watch

We had some pretty good selling early this morning but there was no follow-through later in the session. I’m sure that oil’s early strength and subsequent failure has something to do with that. There was a bit of technical damage done to the Nasdaq and Russel but that damage occurred on declining volume.

Charts of the indices are below along with some stocks that I’ll be watching over the next few days, including: Atheros Communications, Inc. (ATHR), CA, Inc. (CA), Lam Research Corp (Nasdaq:LRCX), NetGear, Inc. (NTGR), Google (GOOG) and EchoStar Communications Corp (DISH)…

The 50-day moving average provided support for the Nasdaq on Friday but it failed today. It also broke the August – January trendline today. I wouldn’t be surprised to see it retest 2400 this week.

The S&P 500 appears to be headed back to its trendline.

The Russell 2000 gave up the 50-day moving average once again. Looks like the January lows will be retested.

ATHR popped up on my NR7 scan. You can see the struggle at the 50-day moving average.

CA — Another NR7 and could be forming a short cup & handle.

LRCX:

NTGR — another NR7 which is testing its 200-day moving average and may be starting a walk down the lower Bollinger Band.

GOOG:

DISH:

Trend Table

A few changes given the 10 and 50-day moving average breaks…

Trend Nasdaq S&P 500 Russell 2000
Primary Up Up Up
Intermediate Down(-) Up Down(-)
Short-term Down Down(-) Down(-)

(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend

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Comments

  1. Posted by DavidDT on January 22, 2007 at 9:39 pm

    Interesting day – looks like selloff, but stocks which recently broke out continued upward move – out of 10 positions I held overnight 8 moved up from 2% to 14%, hope you had a good day too. I really enjoy reading your blog – not opinionated, but “just the facts”.
    great job!
    Thank you!

  2. Posted by bmwmcrider on January 23, 2007 at 5:03 am

    ATHR – looks to me like it is putting in a double top; also a slight divergence in the RSI(14) If it doesn’t hold the 50 that would almost confirm it.

  3. Posted by Michael on January 23, 2007 at 8:12 am

    Thanks David. Sounds like you’ve got some good ones in your portfolio.

    bmwmcrider, you’re right. I don’t know how I missed that potential double top on ATHR.