Tuesday, April 25th 2006
Pre-market Update - AAPL, ADBE, SNDK, SINA, MRVL, MCHX, INTC, & UTIL
Good morning. This is the pre-market update. Yesterday was a strong day in the market and it was accompanied by strong volume. It was a big turn around day for the major indexes. The INDU made new 52 week highs. Banks stood out as a strong sector. Microsoft might try to spoil the party today. Microsoft is weighing on ES and YM futures. Nasdaq futures are down 6 points, but it are gaining strength to the upside.
Apple Computer, Inc. (AAPL) - Daily Chart
The daily chart of AAPL illustrates that it has completed a wave (3) to (4) pull back. AAPL has now broken out of a continuation falling wedge pattern, and it has also sliced through resistance at the second down trend line at $69.36 This is also the Fibonacci 38% retracement level. Furthermore, the MACD is supporting this upwards reversal and showing positive divergence as well as making higher highs along with price.
Adobe Systems, Inc. (ADBE)- Daily Chart
The daily chart of ADBE, like AAPL, illustrates that it has also completed a wave (3) to (4) pullback. ADBE is in an ascending triangle pattern.
Furthermore, the MACD is supporting this upwards reversal and showing positive divergence as well as making higher highs along with price.
SanDisk Corp. (SNDK)- Daily Chart
The daily chart shows that SNDK has been in a wave 3 to 4 correction since the beginning of this year. So far SNDK has held above it's 200 day moving average nicely @ $52.15. SNDK has now broken out of the continuation wedge. SNDK is now pulling back on light volume to fill the gap at the $58.00 area. Now, however, the correction lows have been put in, and SNDK is holding it's new uptrend line. Indicators and oscillators are bullish, and showing bullish divergence.
Sina.com (SINA)- Monthly Chart
As you can see, SINA has broken out above the down trend line and back tested the down trend line on the monthly chart. It has taken out the trend line going all the way back to 2004. Furthermore, SINA has gone through all of it's corrective modes. Since SINA has broken out, a lot of other stocks will follow. This breakout will bring a lot of momentum into the stock. It also has high short interest which will also propel SINA higher. The stochastics are bottoming. I believe significant gains are ahead for SINA.
Marvell Technology Group, Ltd (MRVL)- Daily Chart
As you can see by looking at the daily chart, MRVL has been trading in a wave (3) to (4) corrective channel. MRVL looks to go higher. It is a strong stock.
Marchex Inc. (MCHX)- Daily Chart
I added MCHX to the portfolio on April 19th 2006. Entry was triggered prior to the breakout at $20.84. The price target is $32.00. I believe a short squeeze is in the works. MCHX is in a continuation wedge pattern. The
MACD is showing bullish divergence.
Intel Corp. (INTC)- Daily Chart
The daily chart of INTC illustrates that it is in a falling wedge reversal pattern. I believe that a catalyst will come out and cause INTC to rally at some point. I believe that this is due to the bullish divergence that is appearing in the indicators and oscillators. However, INTC could still go to the bottom of the wedge before a breakout occurs above the wedge. This is not an alert to buy INTC.
The Dow Jones Utility Average (UTIL)
When I look at the daily UTIL chart I think it is bullish. I see it as a failed topping pattern. The UTIL index is currently completing a wave 3 to 4 correction whilst holding its uptrend line. If the utility indexes start moving up, then all indexes will be aligned to move higher, much to the pleasure of Dow theorists. If you are looking for setups look to the utilities, and look for them in the stock scan as well.