April 2006, Volume 3 Issue 4 Know It - Profit!
"Multimedia Network Giant QUALCOMM Rides Wave To Profits!"
I've been forecasting the monumental gains of the Russell 2000 all quarter! Did you get your share of the profits?
Also... this month I use Elliott Wave analysis to uncover the next major move for QUALCOMM Inc.
And... over the months I've featured numerous stocks, providing real examples of technical analysis you can use.
So, how have those trades played-out? I'll show you in this months "Where Are They, Now?".
The Russell 2000 (^RUT) punched through the double-digit barrier, banking an impressive 12.9% gain for the quarter!
The Nasdaq Composite (^IXIC) benefited from a 6.1% hike.
Also, the Wilshire 5000 (^DWC) grew a respectable 5.1%.
The Dow Jones Industrials (^DJI) and the Standard & Poor's 500 (^GSPC) both advanced 3.7% for the quarter.
Where are the Dow Industrials going, next?
Find out in Market Metrics...Click Here For Broad Market Analysis
The PHLX SIG Steel Producers Index (^STQ) ended the quarter with a whopping 42.4% gain!
The AMEX Gold Bugs Index (^HUI) is riding high on 21.5% of growth.
Additionally, the AMEX Securities Broker/Dealer Index (^XBD) has improved 16.9%.
The CBOE GSTI Multimedia Network Index (^GIP) and the PHLX Semiconductor Device Index (^SDL) have captured 15.6% and 14.9% profits, respectively.
Now... you've seen this quarter's leaders. Who's been lagging?
I'll show you in Market Metrics...Click Here For More Stock Sectors
QUALCOMM Inc. (QCOM) leads the Multimedia Network Index this month.
Up 17.5% over the last quarter, QCOM is poised to continue higher...
View Current Chart of QCOM
The weekly chart of QCOM
may have some indicators you are not familiar with. Let's take a closer look at each one...
The Stochastic RSI (green line) is simply an oscillator that measures the level of the relative strength index (RSI) relative to its range over a period of time. It is useful for timing the beginning of each wave.
The Demand Index (DI) (thick red line) incorporates momentum and volume. An increasing DI correlates to a stronger trend. Also, it helps to pinpoint wave tops and bottoms.
Time Projections (gray histogram with red horizontal bars) help identify whether a wave is unfolding as forecasted. If the histogram goes beyond the bars, the wave has possibly entered an extension and may be prime for a reversal.
The Elliott Oscillator (green and magenta histogram) is the difference between a 5-period and a 35-period exponential moving average... the higher the reading, the stronger the wave. A 14-period RSI is overlayed, as well.
Volume is an often neglected indicator. Look for increased volume at the beginning of each impulse wave.
Currently, QCOM is trading within a minor third wave. An intermediate fifth wave inside a major third wave is propelling the stock forward.
Anticipate a $15 gain as QCOM trends up to its minor fifth wave target.
Where Are They, Now?...
Beginning this month, I'll keep a running tab on past trading examples found in the Featured Chart section of Chart Wealth.
The following table represents hypothetical trades based on my previous analysis...
(as of: 3/31/2006)
Not all trades will be winners.
Therefore, I can't emphasize enough... money management techniques should be included in every trading plan.
NEVER trade without a protective stop.
An 8 - 10% stop loss order is sufficient.
Until next time...
Russ Schmidt, President
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Stock-Charts-Made-Easy.com is not an investment advisory service, a registered investment advisor or broker-dealer and does not imply or suggest which securities you should buy or sell. You should always check with a licensed financial advisor and/or tax advisor to determine the suitability of any investment.
It should not be assumed the technical indicators, analysis techniques or trading methods presented in this newsletter will be profitable or that trading decisions based on their use will not result in losses. Past results are not necessarily indicative of future results. Examples presented in this newsletter are for educational purposes only. Any trade set-up illustrated is not a solicitation to buy or sell a security. The author, publisher and any affiliate linked to this newsletter assume no responsibility for your trading results. Remember... there is a high degree of risk in trading.
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CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
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