With the Dow Jones Industrial Average up over 100 points at various junctures on Wednesday while the Nasdaq Composite fell more than 1%, the market had a “someone is about to get hustled” feel to it. Seeing Apple slump nearly 6.5% on heavy selling volume may keep traders cautious or outright bearish, but what has me in a 70% cash position inside 12631 is the S&P 500’s failure, thus far, to recapture the 1420’s.
That said, it is tough to ignore how attractive two wireless communications plays’ charts are, MSI and TRMB. Both figure to outperform in a constructive tape given their price and volume patterns. I also think Nokia has an excellent shot at putting in a long-term bottom here, as you can see the weekly chart below improving (the daily indicates accumulation).
Finally, with Asia coming back to life here consider Sony, given the weekly chart’s RSI divergence playing out as downside momentum appears to be slowing.
Cramer was really pumping TRMB the other day – he told a good story – might be an attractive buy if we have a washout below the 20 sma
Kitten 😉