Charts of the Big Boys are notable today
Very, very interesting negative action in the leaders today. I’m looking at longer-term swings now, so I won’t trade a break of these bars like I “used to woulda,” but the short-sale dawg is lickin’ his chops. Let’s look.
First, my old friend Apple:
Bearish Engulfing, baby. If you’re looking to get short, watch for the break. If you’re long, watch out for the break.
Next, Big Daddy Cisco:
This wide-range candle on high volume extends the current downward thrust significantly. Any little 2 to 3-day pullback on decreasing volume will be a shorting opportunity. Only a huge reversal like that one back at the end of November would negate this setup. This is also a break of the longer-term (6-month) trendline, and a higher high (above 29.00) would be required to re-establish the uptrend for longer-term traders.
Now on to Intel:
This gap breakdown on huge volume is very significant. It establishes the 11/17/06 top of 22.50 as a longer-term first top of a double-top, and the 1/16/07 high of 22.30 as the second top. If price continues downward towards the “middle of the M” bottom of 20.03 on 12/26, a short setup is in the making. Where to get short is a matter of preference. Less aggressive would be to wait for a break of 20. More aggressive would be a break of the 61.8% Fib level the top (22.50) to the bottom (20.03). This is right at 21.00, so using that and a break of today’s low of 20.78 as confirmation is a possibility.
Oh, and watched After The Sunset last night. Poor writing, absolutely terrible directing (or maybe was the editing, I dunno). But it had one redeeming virtue that made it well worth renting. Yes, that would be The Goddess Known as Salma.
Fan said,
January 20, 2007 @ 10:09 am
Salma is awesome. and while we are on the subject of massive and shapely double tops…check out the charts of MA and GOOG…I should say potential double tops because you never know anything about the future. I do know that Ms. Hayek is spectacular eye candy.
Happy belated birthday big guy!!!!
Will said,
January 21, 2007 @ 7:35 pm
Fan- thanks for the birthday wish, and the heads-up on GOOG and MA. I notice that GOOG hit its exact high at 513.00 and fell. Since early last fall, it’s looked almost like one of those “channeling stocks” charts. However, its recent decline has been on diminishing volume, so there are obviously still some folks who are comfortable holding at this level and they still aren’t selling into the decline. But I’ll be watching closely in case the selling accelerates!
MA looks like one of those classic “Trader Vic 2B” tops, except for one thing- it still hasn’t broken its long-term uptrend line. So, as with Google, I’ll look to trade a larger failure, or a resumption of the uptrend, but in between, I’m just a spectator. (It’s the newer, more-patient, post-40 me…).
Best of luck and thanks again for dropping by!