ASEI

Our former high flyer ASEI comes back to earth. I think it may go test the low 50s in the near future.

The book I am reading and love it

This is another great book from Dr Alexander Elder. I borrowed it from a fellow trader yesterday and immediately fell in love with it. I was excited and could not go to sleep after a few pages. That is how good this book is.

Retesting the low?

I thought we might retest the low, but did not think this soon. For some indices, this is not a retest, it is a resumed decline. I am talking about the Semi, the Networking, even the Banks.

Update: SNDK

I think SNDK is on the way to $55 or even lower.

Biotech weekly chart

I would focus my shorting on the Biotech index, because it is below 30 weekly moving average, more importantly the pink average is turning down, which is very bearish long term. Certainly it can rally back above 703 area to prevent a bear market, but if you want to see a new high, it probably won't happen until summer 07. Notice the Biotech almost used one year to consolidate from 04 low to 05 breakout pt.

Semi weekly chart

Samething for the Semiconductor index. If it can rally back above 505 area, our long term bull market remains. Notice that the pink 30 weekly moving average is still climbing.

NASDAQ weekly chart

The NASDAQ is just sitting above the lower uptrend trendline. If we can rally back above the pink 30 weeek moving average, which is quite possible, the bull market would be still alive.

LTXX

I suggested it yesterday in the chat room, one of few semi leaders.

Update: PCLN

Closed some PCLN at $32 for a quick profit. Can't be greedy in this market.

Update: PCLN

Rally out of the congestion. I have been recommended it since the green arrow.

Turn

I pointed out that the market was going to be deeply oversold this week, and I expected a strong bounce because of that. So far all we have got were some weak intraday bounces. This tells me that the bottom has not been reached yet.

SNDK

It has been featured in my newsletter as a short for days. One of my favorite.

NTRI

Recommended it as a short at $64.5 just a moment ago.

Retreat

The market quickly retreats to the low of the day, typical bear market behavior. Is this it? Our expected relieve rally? So far it sure does not look optimistic.

KOSP

I have listed it as a short in the newsletter for couple of days.

Shorting

Some readers asked before how come I did not recommending shorting. I think now my recent trades answered their amateur questions. Always trade with the trend, my friends. And I think the money will be made on the short side this summer.

Update: SIRF

Covering some SIRF, next target $25 area.

Covering NDAQ

NDAQ reaches my target $30 area, cover it for a $10 gain.

Member's pick: NEU

Andy recommended shorting it last Friday. Good job.

Bounce!

Here we go, we are having THE bounce!

Timing the turn

Are we hitting the bottom yet? When are we gonna rebound? I received emails asking me these types of questions. I think we are going to see the bounce soon, today or early next week. The question is if the bounce is worth of playing. I think the bounce is an opportunity to unload any long positions if traders still have it and to prepare the short list for the next round of decline.
If the Fed does not cut the interest rate soon, I think we are heading to 2050 on the NASDAQ.

EZPW

Breaking down hard today, it has been on my newsletter since this Wednesday.

Update: MYOG

Almost $7 profit since I recommended shorting it on April 10th.

Weak bounce

So far the bounce has been pretty weak, seemingly no buyers are interested. However, I think we will continue to walk higher, maybe slowly.

Update: NDAQ

Almost $8 from my short pt since April 24th.

Target

The NASDAQ now is sitting on the support, which is also my short term target, I am covering some shorts, like FFIV, SNDK. I think it is time to take profit on the short positions, at least half.

Andy, I am proud of you.

Congratulations to Andy, a member of my platinum service who achieved 8% plus return this month.

FFIV

I suggested shorting FFIV this morning in the chat room. It looks it has resumed its downtrend, heading to $50 area.

Not oversold yet

My comment has not changed much from yesterday, except that we are on the way to become oversold. I expect when the NASDAQ reaches 2200 area, we may be at the oversold territory and the time frame will be next week.

Reserving cash

Sometimes no trading is a way to beat the market, now it seems one of those times. I decrease my positions and trading dramatically recently, since I really don't see a bottom around the corner. Today's close is kind of strong, but it does not mean anything to me yet.

Morning

The Bank is trying to stabilize here, the Biotech is building a mini double bottom, but they can't trip me into buying this market.

Bearish

I think we will cut through the lower blue line easily next week, then we may find some support around 2000 area. This is a weekly chart, and you can tell we are far from oversold. Actually the decline just starts.

I am back

The market has acted OK while I am way, until yesterday. It was ugly, except the Energy, the Basic material and the Bank, all other sectors now in sell signal. And we are far from oversold, I think the sideline is where we should be.

Update: PCLN

Sold it before the close at $29.4. Now see you all next week, I am off to Italy!

PCLN

I wrote in my newsletter that buying any weakness towards $26. This morning's brief pullback gave us the opportunity to get in around $26.4.

NTGR

I suggested it in the chat room yesterday and listed it in the newsletter too.

Update: LMNX

I recommended it at $15.7 in the chat room yesterday. This one will go to $18+ easily.

Pick for the next week

I expect it to go back to its old high, then on the way to $8.

Update: LRCX

LRCX continues to be leader in the Semi land, now up $7 since my buy pt.

TZOO daytrade

I suggested TZOO at $39.4 this morning, sold it at $41.4, a nice daytrade.
This is a 15min intraday chart.

ITU

Another one I suggested in the chat room yesterday.

HBC

I recommended it in the chat room yesterday.

Market

We are having a mini rally at this moment, but the NASDAQ up 0.07%, the RUSSELL 2000 up 0.14%, so pathetic. The slide is not over.

Update: MYOG

MYOG is sick too.

NDAQ

NDAQ continues to slide.

Vacation time

I am going to take a vacation from May 5th to 11th. This market is sick, which is hard to make money for a momentum trader, like myself. It will probably come back to life again in the late summer. If you have time, I suggest you to do the same thing.