I'm browsing through some point and figure charts today and looking for certain chart patterns that could hint of further bullishness building. One index I really don't talk that much about, but is still worth following is the Morgan Stanley High Tech 35 Index (MSH.X) 416.05 +0.81%.
Components of the MSH are (ADP, AMAT, AMZN, AOL, BRCM, CA, CSCO, DELL, EDS, EMC, ERTS, HPQ, IBM, INTC, INTU, JDSU, JNPR, LU, MOT, MSFT, MU, NT, ORCL, PALM, PMTC, PSFT, SCMR, SLR, STM, SUNW, TLAB, TXN, XLNX, YHOO). I'll have to look and see if Compaq, which was a component, was replaced with another stock.
Morgan Stanley High Tech Index - $5 box
The MSX.X recently set off a triple-top buy signal and the current column of X creates a bullish vertical count of $505. One thing trader's might look for tomorrow is a pullback opportunity for some stocks in this index that have broken above downward trends or have flashed some meaningful or powerful buy signals in their point and figure charts.
We will note, that according to the Stock Trader's Almanace, May expiration has seen the markets decline in 7 of the last eleven years. Last Friday, we used some historical data from the Stock Traders Almanac to set up a bullish trade in the QQQ's to our advantage.