I see one of today's bullish call plays today is in semiconductor stock Genesis Microchip (NASDAQ:GNSS). Subscribers may find the point/figure chart helpful for setting up a trade. The trading history shows that market makers like to push the stock around and trap some bears to create liquidity for the next upward move.
Genesis Microchip - $1 box
I can't show all of the Genesis Microchip (NSDAQ:GNSS) p/f chart as the stock is rather wild and creates a lot of X and O columns. If you get a chance, pop over to www.stockcharts.com and take a look at how this stock traded right down to bullish support (blue +) right after the terrorist attacks and how the stock bounced like a rubber ball from that support at $20! This is probably one of the most bullish point/figure charts you will find right now. Notice some of the "bear traps" I've pointed out in purple on the chart. The successful way to have traded those in the past were to monitor the sell signal, then establish a bullish trade on the 3-box reversal higher. We're never sure if the pattern will create itself again. Is there some upside from current levels? The current vertical count is bullish to $94. I would point out that shares of GNSS have exceeded previous vertical counts. The first vertical count after the test of bullish support at $20 indicated a $59 bullish price objective.