Market Analysis for May 20th, 2005
A few minutes ago the Q's made another marginal new
intraday high at 37.59, and although this represents the
4th consecutive UNCONFIRMED intraday higher-high since
Wed.'s high at 37.36, the Q's exhibit little or no selling
pressure or profit-taking. In fact, judging from the enclosed
daily chart, the Q's are sitting right at the 50% recovery point
of the entire decline from the Dec. high at 40.68 to the April
low at 34.35. Right now, neither the significance of the 50%
recovery resistance plateau nor the multiple intraday upside
momentum non-confirmations appear to be of ANY concern to
the holders of long positions. Nonetheless, my work argues
against holding long positions "up here," and instead, favors
holding small short positions into this PM's option expiration.
A decline below 37.20 remains the key to any forthcoming
sustained weakness. MJP 05/20/05 11:05 AM ET (37.53)
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