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Big Cap Tech Stocks Like Apple, Netflix Appear Tired


Plus, a look at Amazon and Qualcomm, the latter of which reports earnings today.

Editor's Note: See more from Michael Paulenoff at MPTrader.

Tech stocks, the focus of the video below, appear to be tired, and as a result my firm has taken a position in the ProShares UltraShort (QID) for our MPTrader model portfolio.

Apple (AAPL) may have one final up leg before our anticipated correction. The consolidation off of 320 down to 300, I think, is done, and in the next couple days, as long it stays above pretty much 300, it will finish this up leg at a new high before correcting down to 280-70.

Netflix (NFLX) hasn't broken any major trend lines yet, but is starting to act tired, making a high on lower volume, and then a lower high with lower momentum. Watch for it to fill the gap and test the trend line down at 158. The 200-day moving average is 40% below the price structure, and one of two things must happen: The price structure has to go sideways to allow the moving average to catch up, or go down to meet it.

Amazon (AMZN) also looks kind of tired, as daily momentum peaked in September at 162 1/2 or so. There's a pretty good case for Amazon finishing the leg up from the most recent July low and likely going down to 153-151. If that breaks, it could test the 200-day, which is at 132 and rising, so let's call it 137-40.

Qualcomm's (QCOM) earnings come out today, and Qualcomm can be a scary ride, especially around earnings. The up-channel hasn't been broken, and as long as 42.60 remains a viable pullback low, I think 46-47 is a viable upside target; then I'd get out of the way, taking profits, for example, if it's up in aftermarket after its announcement.

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No positions in stocks mentioned.
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