Thursday, February 07, 2008

Qs hold 42, then bounce

The Qs 42 support level came within pennies of being tested in the first 30 minutes, then rebounded upward and onward. Today's volume was the second highest in 2 weeks, the highest occasion was also an up day 2 weeks ago. Going into the close all the technicals looked bullish. . .TICK, NYAD, RSI and signal line. Tomorrow we'll get an idea of how much of today's buying was short covering. The sell down starting at 14:00 suggests it might be quite a bit. I'm still playing nervous nellie with the portfolio as I watch a growing number of NAZ100 stocks deteriorate on the daily charts. Thursday is also an unusual day for a technical about face as it is difficult to sustain through Friday, when traders typically lighten up risk positions over the weekend. We shall see.
I'd like to pick up some MSFT, as it is on the verge of becoming a "value" stock. But even in the face of suspicions that the Yahoo buyout is nothing but a ploy, MSFT continues to get slammed, dropping to 28 several times today. I like it at 27 and change and will bide my time till then.

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