Good morning.
Craig made a fantastic call yesterday about the intra-day reversal. I have eased my short/put positions towards the close and still holding COF puts. Overall, I am still bearish on the market. But I think that we are in for a short term bounce. I looked for some bounce plays on NASDAQ this morning. MSFT, AAPL, GOOG, CELG, TROW look appealing for a 10-20% upside move in Oct. [All Charts in One Page]
- To me Apple as a bounce play is very appealing. Apple reversed form a Jan 07 weekly high of 87. Dail chart show a complete capitulation over the last 5-6 trading days and a strong reversal candle yesterday (Oct 6). Short-term targets: AAPL 115-120;
- Google may be ripe for a bounce but its weekly charts look troublesome.
- Weekly charts of CELG and TROW are still in uptrend.
On the still bearish side:
- JNPR looks week and I see a bear flag on the daily chart.
- Capital One chart is broken. Next support at 35
Correction:
CELG and TROW weekly charts show higher lows (not uptrend) and hence look strong.
Hey Mohan
I am in Apple… how did you come up with the 115-120 target?
I am looking at the gap from 9/29:
Bottom is at 119.5 and top is at 123 pr so.
John
Actually, 115-120 is my sell target, which I normally set at a level slightly below a significant technical target . A technical level to shoot for is a gap fill at 123.
Mohan, I agree that AAPL looks good, but only one thing stopped me. GOOG. I will not touch anything in technology, because GOOG will go to 250-280 (lower band of the channel). That fat finder mistake was not a mistake in my opinion.
Best case scenario – we will cycle down with up and down moves around 80-90 until countertrend rally.