New Down-Trend ?

The Nanotech Industry is not doing so good lately.
The Index seems to continue its move downward and probably creating a new midterm trend.

For the really short term there should be some opportunities, but first lets wait for the Monday and Tuesday session, so we can confirm the new upswing cycle in this downtrend move.

In the next days I will try to find some interesting charts on individual companies. But remember that the charts still look quite Bearish for those nano-companies.

Some good readings at Responsible Nanotechnology Blog, and remember this is no nano-hype stuff: Nanoscale engineering

Support and Moving Average Crossover

Yesterday the nanotech index left a candle that could mean a reversal pattern in the short term.
With the trendline support and candlestick pattern, if we get a new upswing in the next week, there is a good chance we will have the 50 day moving average crossing the 200 day moving average.

A Golden Cross like that one would probably attract some attention from investors and in the best scenario we would have the index above the 200 point level:


But still we are far away from the December 2004 Highs, and remember we are still in a Nanotech Bear Market, since Merrill Lynch started to quote it's nanotech index:

Still waiting for the nanotech Bull

The NanoTech Index is still showing signs of weakness, even after a positive breakout that turned out to be just a false start for the Bulls.

The S&P 500 is on a downswing and it should keep the nanotech industry down while it doesn't get to better support levels.
Some of the bullish stocks I've mentioned in the last updated behaved badly and are just following the index.

On the long term chart we can see both support and resistance lines converging and in the next week we should see some good technical patterns forming up.
The fundamentals just don't work in the short term, and it's better to wait for a green sign from the technical analysis, before buying into an investment even if with good fundamentals.

In these last weeks even the best fundamentally sound companies are going down in the nanotech area, and the Merrill lynch index doesn't seem to lie:



There is some new research information available at nano.gov regarding future energies that looks quite promising. It's a little big PDF but worth the download:
Nanoscience Research for Energy Needs Report

And more news regarding carbon based transistors: Branching Is Key to Carbon Nanotube Transistors

Breakout Analysis

The Merrill Lynch Nanotechnology Index is finally showing some technical bullish reasons to jump in some nanotech stocks.

Its classic breakout pattern, with the possibility of an up-swing in the short term.
The best course of action now is to wait for one more day to verify this technical breakout and then start looking into individual stocks with a similar technical pattern and enough fundamentals for a midterm trade.



Some of these stocks are technically bullish but remember these are new and emerging technology stocks, mostly small to mid caps with low volume, so most of them have poor fundamental records(negative EPS, etc.): CALP, CBT, EMKR, HW, MTSC, NANX, PANL, TINY

From this list, these ones have positive EPS and should be more reliable on the long term for now: MTS Systems Corporation | MTSC, Cabot Corporation | CBT , Headwaters Incorporated | HW.

Remember to stick only to the fundamental and technical data. These stocks are quite risky and avoid being pushed away by all the nanotech hype around the media. This is not a recommendation to invest or trade, only my personal comments and opinions based on my study and interpretation of available data and should not be used to influence your investment decisions. (There it is.. A disclaimer!)

Waiting for the Breakout

The S&P500 and NASDAQ are going great lately but the Nanotech Index is still trying to keep up with the recent gains.

We're still going to wait for a technical Breakout after this fall and above that black line I'll start looking at the individual stocks. The wait might finally be over after some unpleasant weeks for the nanotech sector.


Meanwhile I did some browsing and found some interesting posts in the Future feeder Blog:
Some promising Carbon Nanotube Ribbon printer
and Nano Computing in an article at physorg

Have a nice NanoDay!

Going down

The Merrill Lynch Nanotechnology Index tracks 25 companies that have a significant percentage of their future profits tied to nanotechnology.
I track this index because of the main theme in this blog, and because it effectively tracks the performance of the most important small/mid companies that are working in the upcoming nanotechnology industry.

I'm still waiting for a good up movement on this index, to start looking at individual stocks and good investing/trading opportunities, but since the start of August that the performance of nanotech stocks is down with no indication of stopping.

I will wait until we get better technical factors to start looking into individual stocks, and maybe got some cheap stocks in the next weeks if this index keeps going down...


Until then there are some interesting articles in the Molecular Torch Blog and the Responsible Nanotechnology Blog to read. See you later!

Nano Updates

The Markets are going stronger lately, finally ending the 3 week downward move and probably the start of a new short term uptrend move.

The Nanotech Index is still down and didn't keep up with the positive moves of the S&P these last days. While it might still have to wait some more time before starting to look for some interesting mid/long term buys. For short term trading there are already some opportunities for anyone who can deal with the risks associated with Nanotech Stocks.

On the chart we can see some support in the 185 points and will look for some reaction above 190 to start looking for some bullish individual stocks on this nanotech index:


An interesting article just came up yesterday on the New Scientist:
Nano-material is harder than diamonds

I will update the blog as soon as we have some interesting moves on the index, so we can avoid those nasty falling knives!