Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

YHOO perfect 2 day pullback at yesterday's chart resistance area breaking the 20 dma to downside on a WIDE RANGE BAR right in the area of prior pullback! Exactly at 48 we exploded down to 47.23 probably a move to 46 follows. P/e of 129, the Asian net reports will play havoc with poor overpriced, overvalued YHOO. Pattern Failures the name of the game today in large cap blimpy techs.

Every one of our tech earnings plays for next week displaying "anticipatory downswing" following the sell the morning rally today, we will contemplate buying some cheap calls after covering shorts, but no hurry! We do expect shorters to cover into the 2:00 to 3:00 area so as not to risk a long weekend and by then we'll be way out and covered.

SHORTS are not squeezed, the longs just enter prematurely giving upticks that are easily shortable while they slip into "bull traps". We were waiting and doubtful that once the DELL report was over, there would be no catalyst (no greenspan rally, no dell rally to give any real upside here in the nasdaq) There was some expectation that the dow might offer more upside but that was not to be. We state out support/resistance areas for nasdaq and dow in the preamble commentary to our daily newsletter.