Wednesday, July 30, 2014

NASDAQ poised for possible breakout, again

NASDAQ held up fairly well yesterday despite a determined effort to sell it off, so it looks like traders are using that as an excuse and foundation for taking another shot at breaking out to a new near-term peak. A solid Q2 GDP report and promising ADP employment report are just the kinds of catalysts to inspire the kind of short-covering short squeeze to boost NASDAQ by the 1% gain it needs to leap above the near-term leak at the beginning of July.
 
A new peak is within reach, but sustaining that kind of gain is still an open question. I'm optimistic, but I'm a pragmatist as well.
 
The Twitter (TWTR) Q2 report is a catalyst as well. Technically, we should note that TWTR is not a NASDAQ stock – it is listed on the New York Stock Exchange, but it could help lift other technology stocks anyway.
 
I'll be selling a fraction of my TWTR holdings on the big pop at the open. I'm into TWTR for the long run, but I'm already overweight on it. And I did buy some short-dated options yesterday just before the close, as well.
 
-- Jack Krupansky

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