One of the most overlooked sector hammerings in recent months has come in the semiconductors. The semiconductor HOLDRs ( SMH ) have shed 26% from their July highs compared to 27% in the much hyped financials. Yesterday's late afternoon challenge by the bulls in the broader market should see some initial good will Tuesday morning ( Futures are up a tad). This could provide a longside opportunity in the SMH. The 60-min intraday chart shows a decent capitulation following the gap from $30.75, with prices stabilizing in $29.25-29.75 range. The coming week could see a nice counter rally opportunity back to gap at $30.75, with the potential for follow through (based on the health of the broader indices) to the 62% Fib retracement at $31.75. The initial risk is about $0.50, but this could be reduced to around $0.25-0.30 if one got a fill at $29.25. On the option front; $22.50 February 16th calls at $7.10 from the Ask give relatively low downside risk with enough time built in for the b

After the Christmas break it was a busy week for the markets. What had Stockcharters to say about it? Eric Muathe is looking for a repeat of 1998. I think Friday's break of the prior low negated this possibility - but the 2007 low is an alternative support level. His optimism stretches to the Nasdaq: He has similar expectations for the S&P . Joe Reed had said this to say in December: 12-14-07 WHAT TO INVEST IN NOW? The Bull market is still intact. But with Retailing down and Consumer Spending down, the economy is slowing. Stay cautiously bullish and in 'Defensive Stocks' or mutual funds. *Remember this... The Best Investment is owning something that goes up in a Bull market, then still goes up in a Bear market (or at least holds it's Value). And don't forget about Shorting a weak stock for excellent profit potential. 1-2-08 The DOW drop today of -220 pts was the worst drop in history for a new year. Yipes! His outlook for the housing index is for a test of 20

One for me to play round with later

Decent breakout from a cup-and-handle pattern. Measured move target is around $150, but the point-n-figure chart of $164 is not an unreasonable secondary target. Risk easily defined by short term lows

Will election year bring a healthy boost to the market? 2000 was hardly a glory year for the markets, and 2004 was another disappointment - third time lucky?

The week ended on a flourish with a solid volume close - likely the last of the action until the New Year rolls in. Joe Reed is looking at Friday with more hope than substance. His housing index chart shows next support down at 90-100. His comparison with the retail index is excellent as it shows clear potential for a shorting opportunity in the sector. Friday's gains may not all be good news. Ted Burge has marked in a couple of resistance levels for the Nasdaq 100: With an additional resistance level from October lows for the Nasdaq (on a second look there is a similar resistance level in the Nasdaq 100 - except Ted hasn't marked it in): The semiconductor index was also tagged by resistance at 417.32 and the 20-day MA - future action in this index will be critical for the continued health of the Nasdaq and Nasdaq 100: Leadership could emerge from small caps which cleared dual resistance of the declining resistance line and 50-day MA. Robert New sees a further upside for Sm

There is no question as to the trend E*Trade ( ETFC ) has 'enjoyed' for the past few months. And with the avalanche in full flow there would be little desire to want to jump into the snow and play, but the stock must be near an attractive price for a takeover bid from the likes of T.D. Ameritrade. If there was a takeover interest it probably would be the interest of the buyer to make an offer sooner rather than later, to at least stem the flow of brokerage (its key asset) cancellations/transfers which is no doubt underfoot. From a technical perspective the stock lost $3.69 support on Thursday to end with a $3.37 close. Supporting technicals remain bleak, but the real interest here is less on the short term and more on what the future might bring. If the stock was to receive a buyers bid I suspect it would be over the next 12 months (certainly the stock price couldn't last another 12 months shedding as much as it has). This makes the January 2009 $2.50 strike call at $1.9