Market Update & Watchlist for 4/16/08
Hm, so Wordpress isn't letting me upload any images right now :(. I had just annotated some charts to post as well.
Anyhow, here's the text version in brief:
- the XLF held the 24.40 level I was talking about on a closing basis and has started to bounce off that level. Additionally, despite posting worst than expected numbers on their earnings, WaMu rallied on the news (remember its not the numbers, but the reaction to the numbers that matters).
- the SMH moved below the the up trendline of the ascending triangle type formation that was highlighted in last nights post. It has since trapped some sellers/bears below that level as it spiked underneath it on an intraday basis. After the bell, Intel came out with earnings that were basically inline and the stock rallied much higher.
Based on the action I've seen today and the reaction to the 2 key earnings reports after the close, I believe we've setup for the next leg higher. Whether we'll actually break through the key levels of overhead resistance is another topic, but I'm somewhat confident in being able to put on some swing positions here.
The market has priced in that earnings expectations will be somewhat lower, and provided we experience no major shocks (like GE's earnings last Friday), I believe we'll start to work our way higher for the short to intermediate term.
As for a watch list (they're just so much better when displayed visually).... check out Momentum Trader (he and I follow similar stocks and as a result come up with similar watch lists).
Some others to keep an eye on:
- RIMM, Bullish flag
- AKS, Bullish flag
- NFLX, Bullish flag
- XLB, Bullish flag
- AEM, continuation type play (Gold's movement will have a lot to do with China's GDP released tomorrow and our CPI #s)
- BZH, short squeeze continuation
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