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April 20th: Greenspan set the tone for the selling on the non-too surprising revelation that interest rates will rise sooner rather than later. His comments should be viewed as bullish if (as he suggests), deflation is not a concern. What the market *doesn't* want is a repeat of the situation that hurt the Nikkei for so long - and a return to the secular bear market. It could be this assessment that sets up the fundamentals for the market double bottom. I am not sure we are totally out of the woods (wrt to deflation), but if his proclaimation sets up another 8-12 months of upside I will be very happy. The markets reacted to the 'news' in typical fashion selling off on heavier volume (but volume was relatively light compared to January). Today's volume counts as distribution, but only with respect to recent volume - in the context of our consolidation, todays volume was light. Double bottom's are back in play in all markets, NASDAQ, NASDAQ 100 and S&P (similarly in tracker stocks, QQQ, SPY, DIA). Yesterday's rallies never followed through into prior congestion - bouncing off last week's resistance. Market teachnicals are weakening - but are well above levels of mid-March lows. Strong double bottoms emerge from bullish divergence in technicals, so keep an eye on these on test of price lows. Secondary indicators remain in near term down trends, and are likely to enter new "bear phases", but such weakness will be temporary (bear traps). With a bit of luck, I will have returned before the market bottoms.

Individual stocks were largely quiet. Precious metals entered the next stage of their downside as shorts/bears keep a tight hold of the reins. GDVI broke past $0.29 resistance, ending the day close to its highs ($0.32), but there was a relatively large spread in the bid and ask, and given its parabolic shape - looks suscpetible to a sudden shift down. I took profits in my own position - the model portfolio is running a tighter stop ($0.295). ECGI followed through on heavy volume- the trend of the larger market keeping a lid on its end-of-day gain. GIGM, to a lesser extent, attempted a similar move, but there was no volume to back it up. FNIX put the brakes on its declines - coming off a low of $0.20, to finish at $0.29. TASR sold off hard on disappointing earnings - setting the tone for the late afternoon selling. Most stocks ended mixed, many of the recent breakouts suffered bearish set ups, and are likely to ease up over the course of the week. Low volume pullbacks in any of these stocks will be attractive. Check the stockchart public list for such developments - remember to vote daily!

April 19th: Light volume rallies stemmed the recent outflow of funds. The NASDAQ may be shaping a double bottom in on balance volume (favors further upside). Price remained below last weeks breakdown at 2,039 - but an upside volume bounce will threaten this area as was done in the NASDAQ 100 today. The NASDAQ 100 is sitting right on resistance from its breakdown point. Upside follow through tomorrow will push it into the upper range of congestion, reducing the chance of a double bottom. If the NASDAQ and NASDAQ 100 break 2,079 and 1,508 repsectively, it will negate the double bottom set up. The S&P had a quiet day - running into the third day of sideways trading (with a slight upward bias). In all markets, Tuesday should see morning strength, and if it can hold against afternoon selling then the next step of the rally will be in play. Any form of bearish cloud cover, black candlestick, or bearish engulfing pattern will end the nascent bounce.

Gold stocks look to have ended their relief bouces, falling on heavier down volume today. Check page 2 of the list for further details. However, a number of stocks on my public list did make breakouts today. Including AMXC, AXYX, CVNS (again!), LIFC, LRT, VXGN, GDVI, and CPST. Watch for continued strength in these stocks over the coming days. Many of the heavily traded stocks featured on page 5 of my list had decent days - although upside volume, relative to the downside volume of last week, was tame - look for leaders outside of this group.

April 18th: Markets weakened Friday on light volume, continuing the downtrend from the failed gap breakout. Support held above prior congestion (1,988 in NASDAQ, 1,435 in NASDAQ 100, and 1,125 in S&P), suggesting a near term bounce of 1-2 days will be sooner rather than later (Monday?? watch futures for lead). The biggest concern last week were the weekly charts - the NASDAQ and NASDAQ 100 ending on bearish evening stars, although the S&P finished in neutral territory (spinning top). The theme for this week will be the 50-day SMA will it remain resistance on its next test? Was last weeks trip below the line simply a blimp in an over zealous pullback? Interestingly, breakouts are still working their way through the market. A number of picks on page 3 of my stockchart list are close to moving beyond long term resistance - so all is not doom and gloom, even if sectors that benefited from the late March rally, eg nanotech and precious metals, are hurt on April selling.

NASDAQ 100 secondary indicators remain susceptible to weakness. The $BPCOMPQ, $NASI, and $NAA50 are all back below their 5-day EMA lines, and their technicals hold weak "Bull phases". However, the MACD of all 3 secondary market indicators, and of the markets, continue to underline bullish strength by mapping bullish divergences. Lower moves in the MACDs of the indicators on market weakness should be watched closely for sudden (bullish) reversals. Although such developments are not a buy signal per se, they are typical in bottom formations. All 3 secondary indicators look set to test, at minimum, their near term lows made in late March - the $BPCOMPQ may make a new low on this test (below 59), but a bullish divergence should remain in its MACD reading. The net result of this will be further downside in the market - so be cautious on buying a 1 or 2 day bounce, wait for a volume follow through. Bottom fishers should remain on the sidelines until 1,900 approaches

A number of new stocks have been added to the public stockchart list, consequently, some links from prior posts in April will not work. Please remember to vote for the list on your daily visit. Every vote per day counts!

April 16th: Update to come - Public list features new stocks.

April 15th: Markets continued their weak form, morning strength quickly changed to steady selling. The NASDAQ and NASDAQ 100 closed down on heavy volume - the NASDAQ 100 recording its first day of distribution since the April 2nd breakout. The NASDAQ suffered its third day of heavy selling, while the S&P made a late day rally to close flat overall, trading almost 2.0b shares - classic churning action, but will the bulls or bears win the day - swing trade today's highs and lows. CSCO may be setting the tone here - it lead the March bounce, and is the first to test March lows - look for overall markets and tracker indices stocks to follow suit. Weakness in foreign markets has become more of a concern as investors convert to cash; the ASIAX fund reversed from multi-year highs, leaving behind a bull trap at $14.00 - note confirmation of its weakness in the MACD bearish divergence. The Russian fund, LETRX, has started its own slide, breaking near term lows in slow stochs [39,1]. The latter fund has performed strongly over the last 5 months, but now looks primed for a lengthy consolidation. A slow down in foreign markets will leave US investors edgy, can domestic demand sustain the economy? A strengthening dollar may alleviate inflation concerns, but it won't encourage foreign investment.

On my public stockchart list there were a number of key movers. DYIIE, the once favorite stock of Investors Business Daily when I started playing the market (2001), hit an all time high of $27.85 last year, lost 45% today to close at $3.90 on news of its delistment to the pink sheets - expect this to tumble to penny status until it gets its books in order. All stocks cycle - don't lose sight of this - homeland security stock buyers beware. ECGI was hit bt profit taking after an early morning burst to $1.11 - just needs the market to co-operate (ie. stop selling off!) before this one flies. NAVR was similarly hit - this stock joins the ranks of my personal portfolio - the gap down was disconcerting, but if it can hold $8.00 over the next few days it will trigger a nice run to $15 (at least that is what I am looking for - biased opinion!). PETS followed through on yesterday action, tacking on an additional 5.7% on increased volume. VVUS eased back to $6.00 on low volume, currently sits at 20-day SMA. Technicals suggest it will dip below $5.50 support - if it does, particularly on an intraday move (ie same day close above $5.50) it could be a very attractive long term hold for later this year - Sep $5 calls currently trading at $1.80 from the ask. Apr 22nd is VVUS earnings announcement, recent price action looks to me like manipulation to grab cheap shares before a positive earnings report, profitable last 2 Q's on increased revenue - sexual dysfunction play. FXEN is making a stand having (just about) closed its January breakout gap, buy a strong open and keep stops tight - this is a 'catch a falling knife' play. CVNS fell just shy of yesterday's $12.05 breakout, closing at $11.86 - its gotta break soon, but plenty of whipsaw if trying to buy on the pivot price (cautious play is to buy a break of $13). LIFC continues its see-saw action, reversing a bearish set up into a bullish set up - volume looks to confirm the bullish side, pivot price is $9.30. RATE is finding support around $14.00 - a bounce play to $16.50 ($17.50 on strong volume momemtum) is a decent upside play.

Penny lovers will be perked by the action of CTKH, gaining 14% on heavy volume - a break of $0.0043 will set up a nice run to $0.007. In other penny action, the sell off action continued in MOBL and IPVO, but GZFX and MXDY showed some decent gains, the former is near a break of $0.135 following my negative assessment of its price action - Murphy's law.

April 14th: NASDAQ and NASDAQ 100 bounced off their 50-day SMA on weak trading. Some upside follow through can be expected tomorrow, but a cross of the 20-day SMA over the 50-day SMA looks unlikely. When these two moving averages test one another will be the time the market tops in a short bounce (Friday?). The S&P was less fortunate, closing below its 50-day SMA on heavier trading, the second day of distribution in a row. A small bounce can be expected, but it is unlikely to last into next week. Precious metals and precious metal stocks were sold with enthusiasm, although these stocks are deeply oversold shor term and look primed for a small bounce. Shorts will likely cover at this point, looking to renter short on the 'dead cat bounce'. The $BPCOMPQ followed $NAA50's lead and crossed below its 5-day EMA, finishing beneath a key resistance line. Look for $BPCOMPQ technicals to follow suit, but bullish divergences should develop in MACD, RSI and slow stochs on a loss of near term lows in the indicator (59.40) - this is typical in a double bottom. What this means for the market is an extension of its downtrend - still a couple more weeks of weakness before the summer rally can start in earnest.

Not all was doom and gloom. CVNS continued to pressure resistance, actually closing above the $12.05 pviot resistance for a breakout on modest volume. NAVR rallied on huge volume - trading almost a fifth of its float, consuming prior supply and breaking to new 6-month highs ($8.34) on news of a pact with Riverdeep. One of yesterdays 'stocks to watch', ECGI, rallied on huge volume on no apparent news - keep an eye on this one, trading at $1.00 AH, PnF charts show a price objective of $3.25. Pink sheet stock, QBID, added another couple of pennies, but was pegged back in late day trading to finish at $0.015. Another penny stock to watch is GDVI, which has traded almost 18 m shares (tso 130m) over the last three days and looks set for a big move over $0.25, it ended the day at $0.23. Low key bullish action was noted in STG - a bullish MACD crossover at resistance of a bullish triangle. Look for a short term move to $4.60. Money flow is positive, and PnF charts mark a price target of $8.00. AMWS was another winner on light trading, breaking a week long sideways consolidation on modest volume. Should todays move hold tomorrow (ie. a higher close) then good things can be expected - $2.25 short term, $3.65 long term, PnF charts give a price target of $6.50. AXO completed its three day pullback on low volume - at $3.60 it is an excellent price - stops on loss of $3.50. The cautionary note here is a loss of $3.50 has next support at $2.50, so keep stops relatively tight around $3.50. Upside target price for this is $4.85, PnF charts price objective is $11.00, but note the bearish divergence in money flow (remember to keep stops tight!). EMRG pulled a bullish inverse hammer at support - similar to ECGI yesterday - watch morning action for strength. MACD and OBV indicate plenty of strength, so it could have merit as a buy at $2.10 (todays close). PETS shares bounced in modest bounce, closing above near term resistance for a new 4-week high. MACD trigger line crossed back over its trigger line - an aggressive buy. However, PnF charts show a double bottom breakdown, price target here is $7.50.

April 13th: The NASDAQ and NASDAQ 100 followed through on their respective 2-day bearish harami patterns, closing lower on heavier (although not excessive) volume. It should lead to further downside into options expiry Friday. After hours INTC news brought a mixed response, earnings at the low end of expectations and a slight downward revision of future revenues will not inspire a fearful market - the charts PnF target of $19 says it all. Todays leap down should mark the start of a new downtrend channel to retest mid-March lows (forming a double bottom), longs should be on the sidelines after todays action - only buying on a break of 2,075 in the NASDAQ, 1,510 in the NASDAQ 100, and 1,150 in the S&P. GTC orders at mid-March lows should set up aggressive long entries. Downside volume should be light (no day over 20% of the 60-day EMA daily volume), although the rate of loss can be relatively steep (a string of 20-30 point losses in the NASDAQ would not be surprising). The important events to watch for are bullish divergences in the MACD tigger line/MACD histogram - especially in secondary indicators ($BPCOMPQ, $NASI, and $NAA50 - the $NASI is likely to mark the clearest bullish divergence as this is the strongest secondary market indicator). As always, there will be stocks that will defy this trend, eg. ARTX, so not all will be doom and gloom. The retest of mid-March lows will be complete on a 1.5%+ rally off volume in excess of 20% average daily volume - should this happen tomorrow (unlikely), it will set up strong bullish piercing patterns - a reason in itself to go long even after today's woes. The overall picture for this year remains a bullish consolidation, upside breakout, and (now) a retest of breakout lows.

Precious metals and mining stocks were ther real losers today. Most of which look excellent short candidates on relief bounces. The metals look set for some downtime lasting a couple of months at least, to form new bases. Silver stocks like SIL have had some very heavy down volume spikes over the last few weeks which will act as supply into rallies at these price areas. Yesterdays strong performers had a mixed day; GIGM, NWRE, and XYBR all reversed yesterdays gains, while much maligned penny stocks SKVY, MOBL, and QBID soared. Stocks like WAVX vaulted on no apparent news. CVNS made another attempt at a break of $12.00, but was pegged back on late trading. CRED maintained its strong form, closing up on light trading. VXGN added a further 2.8% on brisk trading - threatening $12.50 resistance. Low key, bullish activity was also noted in DYIIE, DSCO, ECGI, EMRG and EAG - nothing to jump in with two feet, but good enough for a watch list.

April 12th: The NASDAQ and NASDAQ 100 appeared to confirm Thursday' sell off with a weak relief bounce on low volume - ending the day with bearish haramis [note in the description of this candlestick pattern "a rare, and ominous version of this pattern is a long black candlestick followed by a small white candlestick" - caveat buyer]. The S&P fared better - closing in the upper range of Thursday's spinning top - favoring the bulls, but volume, again, was light. The S&P may be shaping a bull flag, should this pattern break upside then a 60 point rally from the lows of the pattern is a strong possibility. The secondary indicator, $BPCOMPQ broke to the upside its trendline resistance, but slow stochs did not react to the move and remain just a few points above the triggered bull phase - in addition, its relative strength remains below the mid-line 50 mark. The $NASI continued its good form and is just shy of resistance c45 - some downside action is likely at this point. Such downside will likely be supported by the $VXN which gapped down today and looks primed for a bullish island reversal (bearish for the market). Small cap, OTC security (hint of 'security') stocks were the real flavor of the day - possible rotation in the sector? TASR and VISG suffered from late day selling - so not all security stocks benefitted. Silver stocks were weak all round, breaking down from recent consolidations, pre-empting a siginificant pullback in the precious metal?

A handful of stocks on my public list made reasonable moves, or look primed for something better. GIGM vaulted 28% on huge volume on earnings, news of an acquisition, and reported 16% stake held by MSFT. A bullish ascending triangle is developing in IVAN, but volume remains light - watch for upside move to $3.40, it closed the day at $2.62. SKVY lept 35% on mixture of Wal-mart news and as a potential security play. ABP made a low volume rise, completing its bull flag breakout retest of lows. EAG follow through off lows on some nice volume, currently trading at its first resistance pointl of $1.50 - a break of this has next resistance at $2.05. NWRE followed through from its breakout Thursday on heavy volume - look for the breakdown gap to close. OMNI bullish morning star may complete its pullback from its initial move over $7.40, but watch how prices react close to $8.00 where 1.5m+ trapped bulls lurk (and are ready to sell into any rally around this mark). VVUS sits 1 cent below resistance of $6.50, with strong demand over $6.20 - will this break upside tomorrow? XYBR continued its Thursday breakout, adding another 5% to move to $1.37. Still plenty of upside room to $1.50 in this. Volume excellent. YPNT gained 22% on average volume to sit below $5.00 resistance, a break of the latter should see a move to $10.00. ADOT begun its own relief bounce - look for downside tomorrow, sell into morning strength. MOBL advanced an additional 22% on strong volume - look for parabolic run to $0.50 but is very high risk buy at this point. A more speculative (but less risky) penny play is MXDY, some decent volume buying between $0.20-0.25 with resistance at $0.40 and strong support at $0.175, but nasty financials and weak technicals will necessitate a positive news shot in the arm.

Some stocks look have completed some of their recent ascents or look toppish; CCI: bearish harami after 9 days of gains, CNXT: break of rising channel, BGO: failed bounce off lower BB band, PAAS: break of rising channel, SIRI: bearish harami, QQQ: bearish harami, SPY: bearish harami, DIA: bearish harami - all three tracker indices showing distinct bearish patterns, short term downside move of a few days length should happen tomorrow or Wednesday. ADNW: low volume doji=weak bounce, supply concerns over $3.25. AKS: bearish black candlestick. BCON: bearish cloud cover - relief rally complete. IIP: bearish black candlestick - time to retest $1.30 near term lows - buy pullback. PETS traded down on light volume and lies just shy of a loss of $10.00. GZFX lost 10% negating a bullish-2-bar reversal at support. Look for loss of $0.10 support. IPVO broke is sharp rising channel, favoring a move back to $1.00 support.

April 9th: YHOO vaulted on heavy trade, gapping over prior resistance. The market, by in large, ignored YHOO earnings and looked to geopoltical concerns for guidance. Few traders were willing to hold a position over the long weekend, selling into morning strength to leave the NASDAQ and NASDAQ 100 a few points above its Wednesday's close. The S&P closed just shy of its Wednesday close. However, volume was light in all markets.

Monday morning should follow on Friday's weakness (look to futures for guidance), threatening to close the large breakout gaps in each of the tech indices. This will be the start of the downleg towards the consolidation double bottom. Upside volume, with the exception of Apr 2nd, has been too light to suggest a V-bottom. DIA bounced off the (former) 1-yr support-now-resistance line on a large bearish engulfing pattern. Volume declined from the early March sell off, never bullish in a sharp rally. The SPY is in a similar position and looks set to correct after two days of heavier selling. The NDX has replicated the large (bearish) black candlestick of its parent tech index setting up a potential island reversal for a move to $35.50. Secondary indicators vary in strength; the $NASI is in a confirmed bounce, but the $BPCOMPQ is struggling to progress having switched into a bull phase. The slow stochs [39,1] of this indicator look particularly feeble as the indicator tests a 3-month resistance trendline - should this reverse back into a bear phase then expect $NASI to follow suit. The NYSE versions of these indicators ($NYSI, $BPSPX) draw a similar picture.

Quiet trading left many stocks unharmed by the selling. CHS was not so lucky, losing over 4% in heavy volume on a sales report. It lies at support of a 3 1/2 month rising channel. RATE lost a further 4% to end any hopes of a handle-on-handle consolidation. CCI broke to new highs, but volume was below average - this was the 9th consequtive day of gains for the stock, reason enough to take profits from my calls. SIRI took a breather from its recent run - a large bearish engulfing pattern likely to suppress prices for the next couple of weeks before $4.20 is broken to the upside. Pullbacks in this stock (especially close to $3.30) should be bought. AQNT rode the wave of YHOO strength, moving sharply higher on heavy volume, placing it well inside bounce fib retracements. It lies just shy of a gap to $12.60. Jun $10.00 calls at $1.80 look an attractive play for this gap. IIP stepped up from a small handle on light volume. Should be good to reach $2.10. NAVR negated its Wednesday weakness, closing well inside a supply zone and just shy of an important breakout - keep this one on the watch lists. Another stock worthy of attention after months of neglect is NWRE, passing near term resistance of $10.85 on heavier volume. Like AQNT, a large gap to $13.60 looms into range. Jun $10.00 calls at $1.90 look good value. REDF continued in strong form - vaulting 16% on heavy volume. XYBR made an important break of near term resistance ($1.22) and looks set for a move to $1.50 resistance on homeland security related news. MOBL was the bright star in the pennies - chewing up Wednesday weakness on a 27% gain, looking fresh for new highs beyond $0.20, it finished Thursday at $0.168.

BCON was the sucker play of the day - watch this relief bounce fail over the next couple of days.

April 7th: A quiet market, continuing yesterday's pullback. After hours news from YHOO should spark a nice jump tomorrow - although light volume holiday trading remains the controlling influence for the week. Other than security issues, TASR, VISG and IDNX, there was little of note today.

On my public stockchart list, GSS showed some strong buying in the absence of a news announcement. SSRI attempted a weak breakout on low volume, ending the day on an indecisive doji - this could go either way - the next move should be substantial based on recent narrow trading. CGFW added an extra 2.93% on average volume to its recent bull flag breakout, negating yesterdays short term bearish top. CVNS built on yesterdays bullish hammer with an engulfing pattern on higher volume - a sizable break of $12.00 cannot be far away. LU showed some flair, closing up on heavier volume - its recent advance has a good 45 degree angle and strengthening technicals - don't discount this from making new 52-week highs in the coming months. SIRI's heavy volume, black spinning top, at resistance should put an end to its rally off the $2.60 double bottom. Look for sideways congestion to shake weak hands and profit takers before it breaks $4.20. Once breached, $4.20 should act as major support, GTC buy orders should then be raised to just above this price level. ADNW made a successful test of $3.00 support on low volume. Further declines to this price should be bought - place stops on a loss of $3.00. AKS held its recent triangle breakout and is consuming supply above $6.50, with excellent support down to $6.00. Weekly charts show a price target of $8.00, but PnF charts suggest a potential target of $13.00. Look for value in June $5 calls, ask at $1.75. AXO is only a few days away from its breakout of $4.00 - watch closely for volume cues. LRT threw in a 2-bar bullish reversal pattern - previous reversals of similar ilk have gone on to test prior highs, should this do likewise a quick 10% profit could be made by the nimble. REDF, although extended - looks ready to gap up again. The original gap breakout is resilient and sellers have been unable to close it.

From my own portfolio, AAC's low volume rise is a step in the right direction, but the real test remains at $1.05, keep on watch lists. CCI continues its sharp ascent, closing just shy of it near term resistance on above average volume (it just scrapped a new 52-week high). While CCI trades at resistance it is best kept on a watch list until $14.00 is broken on heavy volume (2.5m+). PWAV closed at the highs of todays range - negating the short term top marked by last Friday's black candlestick (and likely my covered call play with it).

Flying under the radar is beat down MXO, sold off heavily on STX dissapointing earnings, but failed to make a new price low. Bullish divergence in MACD remains, and its chart is in much better shape than its competitor with decent support around $7.00 - but keep stops tight, PnF charts give a price objective of $4.00. Former darling of the bear market, NWRE, continued to show very strong technical strength. Today's hammer could mark the last opportunity to grab shares under $10.85 before closing the gap to $13.50. In the penny sector, IPVO continued its see-saw gain, tacking on 12.61% on brisk trade - its up almost 50% from the highs of the prior congestion.

April 6th: Finally back online! First signs of a pullback on bearish inside days in NASDAQ, NASDAQ 100 and S&P 500. Ideally, I would like to see this pullback continue into Friday on (holiday) low volume, bringing each market to 2,010, 1,145 and 1,125 respectively, before turning back upwards next week. Although a technically bearish day, plenty of stocks pushed on to make decent gains. DYIIE rose sharply higher on news of restating earnings for FY2001 and FY2002. This badly beaten stock has plenty of upside room to $15.70 resistance having closed at $9.14 (up 68%). MOBL enjoyed its day in the sun on no news with an important technical breakout on heavy volume. The stock closed at $0.145 (up 45%) and looks primed for a momemtum run to $0.19-0.20. One of my own pinksheet portfolio stocks, QBID, continued in strong form - a test of $0.01 looks a decent play at this point - riding the gay wave trend. Another portfolio pick, CCI, made an important break of near term resistance on heavy volume on news of an analyst meeting on Apr 15th - look for new 52-week highs in the run up to this event. SIRI continued its rich vein of form - adding an extra 5% after hours on Chrysler pact. This could break important resistance of $4.20 and is an excellent 6-month call option play. Other stocks of note today can be found here.

April 2nd: 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 should 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 the 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 reversal 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

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