Monday, April 10th 2006

Morning Update - AAPL, ADBE, GOOG, MRVL & SNDK

Apple Computer, Inc. (AAPL) - Daily Chart
The daily chart of AAPL shows that it has completed a wave (3) to (4) pull back. AAPL is in a falling wedge pattern. It never overlapped wave 1 to 2, and that is bullish. Furthermore, AAPL put in it's lows at $57.67. AAPL has broken out of wedge on strong volume and it is now bull flagging. All the indicators and oscillators are now bullish, and the Aroon just had a bullish cross at 60 which is also bullish. I believe AAPL will rally to the $80.00 area after the bull flag is complete.

Adobe Systems, Inc. (ADBE)- Daily Chart
The daily chart of ADBE, like AAPL, illustrates that it has completed a wave (3) to (4) pullback. ADBE is in a continuation wedge pattern. ADBE has reported, and has drifted back to the gap support zone. Adobe has recently bought Macromedia. Fundamentals aside, I would not short ADBE. The pullback channel stopped at Gap support. The daily chart of ADBE is short term bearish. It may back test the breakout line at the $33 level, but overlapping is not until the $20 area. The Williams %, PPO and stochastics are still in a bearish trend reversal. Longer term I believe ADBE is bullish. ADBE was added to the portfolio on April 4th entry was triggered at $32.50 with an intermediate term price target of $45.00.

Google, Inc. (GOOG) - Daily Chart
The daily chart of GOOG illustrates that it has completed a wave (3) to (4) pullback. GOOG is in a continuation wedge pattern. As you can see from the chart, GOOG gapped up and broke out of the wedge around the end of March. GOOG is the strongest. It looks like GOOG is headed towards the old January gap. It may go up to $425 and run into some resistance there and stall. GOOG is a good stock to watch as a barometer of market strength.

Marvell Technology Group, Ltd (MRVL)- Daily Chart
As you can see by looking at the daily chart, MRVL has been trading in a wave (3) to (4) corrective channel. However, MRVL broke out of the counter trend channel three days ago and is now forming a bull flag as it back tests the down trend channel. The Aroon just had a bullish cross and the rest of the indicators and oscillators are trying to go bullish.

SanDisk Corp. (SNDK)- Daily Chart
The daily chart shows that SNDK has been in a wave 3 to 4 correction since the beginning of this year. Now, however, the correction lows have been put in. So far SNDK has held above it's 200 day moving average nicely @ $52.15. SNDK has now broken out of the continuation wedge. SNDK is now pulling back on light volume to fill the gap at the $58.00 area. Indicators and oscillators are bullish, and showing bullish