Underlying Strength
While futures point to a relatively flat open, many busted tech names are showing remarkable strength. Currently, Apple (AAPL) is over 1 ½ points higher, Baidu (BIDU) nearly 3 1/2 points higher and Google (GOOG) 3 points higher. Following on Friday’s late day strength, we may be approaching a point where these names can sustain a rally. Looking at their charts, I see broken stocks bouncing around in a no-man’s land between any discernible support or resistance. Therefore, these names must be treated carefully. They are showing strength now, but could reverse at a moment’s notice. Therefore, if you trade be quick, nimble and careful. Develop a view, push it for a profit, but be prepared to close down your positions if the market does not behave as you expect.
