MSFT is moving towards major resistence at 30 once again. The volume is picking up and it’s in overbought condition. Later this month, it will pay a special dividend of $3. The stock price, its SSF and options will be adjusted with the $3 change accordingly.
If you like to play breakout, you may watch it closly if it breaks out from 30 with higher than average volume, which is about 50 million shares.
If you like to short, it’s pretty close to the top now. The next resistence above 30 is 32, but you may not want to have that big stop loss. So it’s somewhere between 30 and 32.
The monthly chart shows an ascending triangle indicating a possible breakout from 30. You may buy straddle (buy a call and a put at the same strike and expiration date) to capture this breakout, but with recent sharp move, you may have to pay more since its volativity is higher.
LFC rose 1.33 today in every high volume. It’s testing the overhead resistence again. The next major resistence is at 30.
SUNW continued its ascending, but it backed off from 4.54 intraday high and ended at 4.47.
LU was very active traded today, over 100 million shares! It looks like that it’s posing for a breakout. From the two-day 15 minute char, we can see that buying was persistent.
SUNW is approaching its major resistence once again. The volume is decent, maybe this time it can break out from 4.5. However, I’m selling into this rally. Sold covered calls on my long term position.
GOOG gapped up big time today after excellent earning report. It now looks like we are back in dot com boom era when stocks move 20 points or more in a single day.
INDU is now at year’s low. The support at 9800 was borken slightly at higher than average volume. It’s very weak now. Let’s see if it can hold up above 9700. The next support is at 9500.
SPX is likely seeking support between 1095 and 1065.
RUT is in better shape with support at 560.
QQQ is so far the best among major indexes. The uptrend channel is still intact despite today’s big drop. The volume is slightly above average level.
MSFT is hurt by disappointing earning data. The support is at 27. The high volume yesterday indicated heavy selling into the resistence of previous big gap down.
INTC did not fall too much among today’s big selling in tech related stocks, which means the market has much consensus at this level. Today’s volume is light.
INTC has stablized from declining. We may see some kind of bounce to 22. AH quote is at 20.96 x 21.00 on INET.
MSFT will form a triple-top around 28.6.
SUNW broke its short-term uptrend, but held up at 4. It has to break out from 4.3 to resume the uptrend. The large volume and volatility on Friday might be related to option expiration maneuver.
RHAT is building a base above support at 12.
QQQ has maintained its uptrend line. It bounced back right from the uptrend line on Friday and today.