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A very persistent coumery posted: ok, now for my daily request, some ta and commentary on todays action.

coumery, I'm pleased that you're interested in these technical discussions. Here's one more TA presentation, and then I must sign off for a week or so (I'm headed down to Gulf Shores, Alabama for some sun, golf, and R&R!).

I'd like to see you or a few others on this board attempt some of your own posting on SCMR's TA while I'm on holiday. Just have a look at this price/volume chart for SCMR:

Then, make some observations about how price and volume are behaving and interacting. Notice where the buying starts, and notice where the buying stops (and the selling starts). Also note the intensity of the volume bars at different points in the intraday graph. Trading volume is very important to monitor, as it shows us the magnitude of investor interest (or lack thereof).

My God, we're turning this message board into a SCMR TA symposium! I apologize to all fundamentalists out there who would rather talk about OC-192 or optical switches or something else that I don't understand.

Now, for those who are interested, here's a look at Thursday's market action in SCMR...

Buying continued from Wednesday's close into the overnight hours, as market makers filled those buy orders and pushed SCMR up to proven resistance at $119 1/2 as soon as the opening bell rang. But $119 1/2 would be SCMR's highest tick of the day.

Profit-taking in Thursday's market took almost all of the techs down, including SCMR. The selling started just five minutes into the session, and none of the techs had a chance to fight back. SCMR actually held up well in a tough market.

As I cited above, we momentarily revisited that $120 area ($119 1/2, to be exact), and we hit another brick wall up there. But don't be discouraged, SCMR shareholders--this is all perfectly healthy and normal for a stock that is building a nice flat (or rectangular base). Keep in mind that bases are constructive technical events--we're seeing temporary agreement between buyers and sellers of SCMR that she is priced fairly at this point, and hopefully, we're weeding out more sellers at these levels.

The good news is that SCMR continues to see strong support above the $110 area. Today, we only saw an intraday low of $113 1/4--the highest intraday low that we've seen since early April. Higher lows inside a flat base is a bullish trend.

Although Thursday's volume was slightly better than the average daily volume (ADV), selling pressure diminished from Tuesday's pullback. This is also constructive, and we longs hope that the selling continues to dry up as we move forward from here. That diminishing selling volume will afford a breakout of the resistance at $120.

Another positive that I noticed on Thursday's chart: SCMR ran up from its intraday low of $113 1/4 to $115 3/8 in the last fifteen minutes of trading. Market technicians like to see a stock finish the session on a strong surge, and SCMR has been displaying this kind of strength at the close all week. There are a few green "buy" volume spikes in those final fifteen minutes, which implies institutional accumulation of the stock. Folks, accumulation is what we most want for our stocks. That institutional support will take us to bigger and better places.

So for now, SCMR continues to move sideways in a $110-120 channel... Not bad for a stock that was trading in the 80s just three weeks ago. I won't predict anything here (good technicians don't predict--they evaluate), but I'm optimistic about our chances for another SCMR breakout in the not-too-distant future. A lot depends on the Nasdaq's movements too. Keep an eye on the techs, because if the Nasdaq hits another brick wall, they will likely take SCMR down with the group.

And so I will leave SCMR in your capable hands while I'm away. I'll be taking a laptop with me, but I won't be able to spend much time online. I'll be watching for that breakout (when possible, of course).

Have a prosperous week, everyone!

Over and out for now...

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