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Point & Go Figure: X, IBB, QCOM, MRVL



Market Overview:
The short-term is positive, but extended, and Friday's further gains capped a strong week for the broad indices across the board. Meanwhile, the percent of stocks above their 50-day moving average for the NYSE and Nasdaq are both nearing high-risk, high probability topping areas which preceded summer pullbacks.

There are still no changes to the long-term indicators that continue to suggest we are nearer the end of a long-term topping process than the beginning of any important new leg higher. Meanwhile, there continue to be select individual stocks that remain technically sound even as the broad indices show narrowing breadth and weak long-term technical patterns.

Charts of Interest:

US Steel Corporation (X)
(Chart courtesy Dorsey Wright)

On a point and figure basis, X has just given a buy signal, a double top break. That is all well and good, but the buy signal occurs after a long column of Xs, following an even longer column of Xs off the October low. In other words, I want a second opinion.

US Steel Corporation (X)
(Chart courtesy Thomson Financial)

No matter what anyone says about offense, defense, etc., successful trading and investing is always a matter of probabilities and timing. In this case, I do not consider the probabilities fully in my favor.

iShares NASDAQ Biotech Index Fund (IBB)
(Chart courtesy Dorsey Wright)

The IBB is also on a TD-Sequential 12 here, suggesting a better entry point may soon be available. On a PnF basis, support from here is nearer the mid-70s.

Qualcomm (QCOM)
(Chart courtesy Dorsey Wright)

Marvell Technology Group (MRVL)
(Chart courtesy Dorsey Wright)

MRVL just completed a bullish shakeout pattern and on Friday broke a triple top. Meanwhile, the stock also registered a daily TD-Sequential 13 sell signal as well as a monthly 9 and 13.

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No positions in stocks mentioned.

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