It was on November 6 when we gave the heads up on the big picture that there were a bunch of stocks that needed to be watched closely. I just went through a ton of charts, and here is the theme. I'll post the charts first, and you can see if you can see it yourself.
SANMINA presents with an extreme ADX reading for this symbol and timeframe on an "ADX divergence". Dark cloud cover pattern.
ALTERA comes back to test the old swing high and to see if old resistance has become new support. Also sports an "ADX divergence" after an extreme reading. Bearish engulfing candlestick pattern.
BROADCOM fails on a test of top, and forms a bearish engulfing candlestick pattern on the weekly.
AMAZON made a lower high after the bounce off the 20-week EMA blow. A not-so-perfect dark cloud cover pattern is formed on the failure at $55.
SANDISK cratered as expected. This is the classic extreme ADX spike top, failure bounce, and crash.
THEME: Weekly charts are failing on the leaders, and so we have to tread carefully on the daily charts, in case these are bigger reversals in the making.
03.12.09 07:24 #