Each evening TMTT Real Time Trading members are sent the following report. Enjoy.
There were fewer short set-ups than I would like going into Monday. The good news though is that there are not a lot of easily identifiable long set-ups either. Volume should start to come back in this week again, and with it a return to tradable patterns. (fingers crossed here). I would expect that by the end of the week we start moving higher. Fund managers are more afraid to miss "the bottom" then they are to loose your money.
As most of you are aware the new Pattern Daytrading Regulations have come into effect on the NYSE, and will start on the Nasdaq on the 28th of Sept. With this in mind each Monday I will give a list of stocks for consideration using weekly charts. If stops are hit you will of course have to take your medicine and get out, but a trader who focuses on the stocks I will present should not run into much trouble with the new rules, and also should be able to continue to pull money out of the market.
Daily and Intraday Chart Patterns.
Diamonds (DIA) is forming a small bear flag on the 120minute charts. Watch for shorting opportunities on the smaller time frame charts.
McDonald's Corp (MCD) is forming a hells triangle on the daily chart. In addition it has a bear flaggish 120 minute chart and a doji on the daily chart. Look for shorting opportunities under 29.90. Stops above 30.20. Potential multiday hold.
Bristol-Myers (BMY). Everyone scanning for Oops buy patterns should have found this one. Its one of the more obvious ones I have seen in some time having sold off sharply to the 40 day simple moving average and a price cluster support area. Look for buying opportunities above 56.14 with stops under 55.95.
Mid Atlantic Medical Services (MME) sold off sharply to an area of price and moving average support. An uptrending stock, focus on Oops buys above 21 with a stop under the days low at the time of the setup.
Cincinnati Financial (CINF) after breaking out from a low level base in early August CINF has now pulled back for several days to price and moving average support. Friday's Marabozu Candlestick Bar gives us a potential Oops buy above 40 with a stop under 39.88.
Earthlink Inc (ELNK). The short term stochastic has become oversold here and Fridays Marabozu gives us the potential for an Oops buy above 13.51. Stop under 13.49.
Teradyne Inc (TER) has pulled back in a fairly orderly manner to price and moving average support . Look for buying opportunities above 33 with a stop under 32. The 120 minute chart here also looks pretty favorable. Potential Swing.
Vignette Corp (VIGN) is TER's Twin Sister (the chart's look that way at any rate). Look for buying opportunities above 7 with a stop under 6.35. Potential Swing.
Atmel Corp (ATML) is VIGNs Twin. Look for buying opportunities above 9.65 with stops under 9.15. Potential Swing.
Illuminet Holdings (ILUM) broke out of a long sideways base with decent volume on Friday. Look for continued buying. Longs above 33.75. Stops under 32.50.
Sector Focus
Forest and Paper Products ($FPP.X) has been trading in a long sideways base. If it the sector breaks above 351.90 this week we will want to focus on buying Paper stocks. Stock Basket: BOW, TIN, BCC, SSCC, LPX, MEA, PCL,GP,IP
Semiconductor Sector Index ($SOX.X) has traded down to the bottom of its most recent range, forming what could be a slightly higher low. Focus on longs in the Sector if the $SOX.X trades above 566.50. Stock Basket : AMAT, NSM, SMTC, TER, LSCC, XLNX, AMD, VTSS, AGR.A, ADI, IRF
Airline Sector Index ($XAL.X) has become stretched on the daily chart and has formed two hammers in a row. There are not many stocks in this sector however.Focus on longs if the Airline Index trades above 127.8 Stock Basket: CAL, U, UAL, NWAC, AWA
Gold and Silver Sector Index. ($XAU.X) They say cash is king, but when people are scared in reality Gold is. The sector has been fairly strong recently and has now pulled back to the 20 day moving average and price support. Focus on longs if the Gold and Silver Index trades above 56.8 Stock Basket: ABX, PD, NEM, PDG, ASL, FCX, DROOY
Trading Sector Baskets requires a high level of concentration, discipline as well as a fairly large trading account. If you find yourself lacking in any of these three, then do not attempt this style. The basket idea here is that upon the trigger in the sector you will then buy all stocks in the above sector basket. You will then want to sort the positions by net gain/loss since entry. Almost as soon as you enter you will start tossing out the loosing trades, while riding the winners until a general sell signal occurs in the sector.
Weekly Charts.
Microsoft (MSFT) the king of Tech had a pretty hard week. Last weeks Marabozu Candlestick bar brought this tech leader to an area of price support. Look for buying opportunities in MSFT on trades above 57.50 with your stop placed under the weekly low when it sets up.
VA Linux Systems (LNUX) has become quiet stretched out to the downside on the weekly chart. Look for weekly Oops buys on trades above $1.37 with stops under the weekly low at the time of the entry signal.
Broadvision (BVSN) sold off sharply all week (especially so on Friday) on very high volume. Look for weekly Oops buys on trades above 1.30 with a stop under the weekly low.
***Juniper Networks (JNPR)*** has become quiet stretched on the weekly charts and formed a Marabozu Candlestick bar last week. Look for buying opportunities on trades above 14 with a stop under the weekly low. |
