Overbought

Highlight: shares of Williams-Sonoma Inc. (WSM), profiled as a long holding in our “Swing Trader Bulletin” back in June ’07, jumped almost 9% last Friday, after a Cowen & Co. analyst recommended the shares to long-term buyers, saying the company’s turnaround is still on track.
…Friday trading action was very consistent with what we’ve predicted in our Thursday evening “Cubes Speculator Bulletin” – “the “cubes” printed a bearish “doji” on the daily chart. Expect some weaknesses…a decline to below $50.31 will confirm this and a test of $49.64 is, therefore, expected. [Although] price could get pin @ $50 into option expiration day” the NASDAQ-100 Index ETF (QQQQ) managed to overcome early weakness – it hit as low as $49.74 – to close @ $50.05 Friday. Any round-trip option traded could have made a quick profit of at least 30% intraday…(more)