Market Overview

Tech Stocks Tired

(via COMTEX News Network)--

Tech Stocks Tired By Mike Paulenoff, an publication

Tech stocks, the focus of our video chart this week, appear to be tired, and as a result we've taken a position in the ProShares UltraShort (QID) for our MPTrader model portfolio.

Apple (AAPL) may have one final upleg before our anticipated correction. The consolidation off of 320 down to 300, I think, is done, and in the next couple days as long it stays above pretty much 300, it will finish this upleg at a new high before correcting down to 280-70.

NetFlix (NFLX) hasn’t broken any major terndlines yet, but is starting to act tired, making a high on lower volume, and then a lower high with lower momentum. Watch for it to fill the gap and test the trendline down at 158. The 200-day moving average is 40% below the price structure, and one of two things have to happen – the price structure has to go sideways to allow the moving average to catch up, or go down to meet it.

Amazon (AMZN) also looks kind of tired, as daily momentum peaked in September at 162 1/2 or so. There’s a pretty good case of AMZN finishing the leg up from the most recent July low and likely going down to 153-151. If that breaks, it could test the 200-day, which is at 132 and rising, so let’s call it 137-40.

Qualcomm (QCOM)’s earnings come out Wed, and QCOM can be a scary ride, especially around earnings. The up-channel hasn’t been broken, and as long as 42.60 remains a viable pullback low, I think 46-47 is a viable upside target, and then I’d get out of the way, taking profits, for example, it’s up in aftermarket after its announcement.

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