Shake That Tail: RAX, VMW, RVBD, SNDK

This morning, the sky was falling as the major stock indexes plummeted, however, after a heavy volume surge after the open the major stock indexes started to recover a bit off the lows. At one point, the Dow Jones Industrial Average (DJIA) was down by more than 150.00 points before bouncing higher. This afternoon, the DJIA is trading lower by just 20.00 points. The big question is whether this market can hold up into the closing bell. Traders should always remember the old market adage, it is not how the market starts, it only matters how the markets finish.

There are many stocks that are making potential bottoming tails on the charts. Leading stocks such as Rackspace Hosting Inc. (NYSE:RAX) has reversed its earlier declines and is now trading positive by 0.53 cents to $39.53 a share. VMWare Inc. (NYSE:VMW) also reversed higher and could be making a potential bottoming tail on the daily chart. These are leading stocks and that is why they must be followed closely. Other stock that have rallied sharply off of the morning lows include Sandisk Corp. (NASDAQ:SNDK) and Riverbed Technology Inc. (NASDAQ:RVBD).

When stocks rally off of the early morning lows this sharply it will often signal a possible near term bounce. It is still very important for stocks to see follow through in the coming days should they even hold up into the close. Tomorrow many traders and investors will be in pause mode ahead of the U.S. government job report on Friday morning. In the meantime, there are a lot of potential bottoming tails to look at on the charts.

About Nicholas Santiago 575 Articles


Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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