STOCKS TO WATCH - MONDAY - NOVEMBER 15
AGI was up on Friday but not up enough to trigger our entry. I am keeping this order open based on the analysis provided for Friday's Stocks To Watch.
There are quite a few selections coming up in my scans and I couldn't possibly play them all. Based on the number of prospects popping up, and the recent bullish move in the market, my guess is that the market will continue higher at the open Monday but we will see the highs of the day during the first hour of trading. Therefore, stops are being moved up on open positions and I want to pick just a few of the many selections that are looking good for Monday.
========================================================
CYD is one I want to watch for Monday. A week ago they announced excellent earnings and the stock popped 20% in one day. All good traders know that when you get a 20% pop in one day, you take some profits off the table so, a pull back was expected.
CYD has pulled back 4 days in a row. Anyone who knows how to analyze candlestick patterns knows that when you get a long white candle like we saw a week ago, that normal profit taking will take the price down to the half way mark of the candle. It looks like we achieved that on Friday.
If the stock gaps up at the open about 6 cents or more, I would use that as my entry. If it doesn't, I would wait until CYD goes one tick above Friday's high of the day, making the entry at $16.07. The initial price target is $17.00 which is the 200 day moving average. However, the fundamentals may suggest the price will go higher than that so, I will stay with the trade if the technicals are still improving at that time. (Take note of the very positive fuel cells and the bullish money flows on this one.)
Once the trade triggers, we should not see a lower low from Friday's low. Therefore, my initial stop is $15.48. The initial risk vs reward ratio is 2-1 but, with the fundamentals kicking in, and the 20% pop in one day suggests they should, we could see a much better ratio once we approach the price target. We'll have to revisit with it at that time if the trade kicks in.
stockcharts.com[h,a]daclyiay[d20040614,20041114][pd10,1!b200!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
==========================================================
EGHT is another stock that had a nice move up several days ago, up 23% in one day, and has had some profit taking pull the price back down to the 50 day moving average. This is where one would expect the price to reverse and on Friday, this support level held.
The fuel cells are very bullish (MACD) and suggest that EGHT has enough energy to take out its recent high if the price continues up.
Although money flows look poor on the CMF, they have gone from about minus 40 to minus 19, a terrific improvement. A move this rapid suggests that there is systematic buying going on.
If we don't gap down at the open, use Friday's close as the entry. If we gap down at the open, use Friday's high as the the entry. The initial price target should take us up to $4.00. The initial stop will be $3.07 once in the trade. This one has a risk vs reward ratio of better than 3-1.
stockcharts.com[h,a]daclyiay[d20040614,20041114][pd10,1!b50!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
=======================================================
SNDK is a buy for those of you who like to buy stocks that have been beaten down and look to be improving. I don't know why SNDK took a fall, and it isn't really important at this time.
What is important is that it looks like its starting to gather some momentum and on a risk vs reward ratio, this is a good place to pick up a position.
The momentum bands have now turned up and the price has closed above those bands. Money flows are starting to improve. Until the money flows show positive, you play stocks like this for the short term momentum as they try to close the gaps.
The fuel cells are positive and look to be energizing. This one should have the juice to make an attempt at the 50 day moving average.
Entry $21.82. Price target $24.25. Initial stop $20.70. Better than a 2-1 risk vs reward ratio.
stockcharts.com[h,a]daclyiay[d20040614,20041114][pd10,1!b50!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
===========================================================
I think SINA is setting up to pull back. I think it's a good short candidate at this time.
I can't provide a lot of technical indicators to support a pull back. I can only say that acceleration and momentum is slowing down at a time when the market was still building on its momentum.
The MACD is not comfirming the higher prices. The fuel cells were much higher when price was $36 than they were at $38. This is a divergence that suggests we will see some profit taking. The Rate Of Change (ROC) indicator is showing a stronger divergence than the MACD, suggesting a pull back is coming.
I see a $4 drop in the cards. Both the 200 and 20 day moving averages are sitting at $32. I think the price will come close to testing that support level.
Entry target $37.50. Price target $32.25. Initial stop once in the trade, $38.20. An excellent risk vs reward ratio.
stockcharts.com[h,a]daclyiay[d20040614,20041114][pb200!b20!f][vc60][iut!Lah10,30,5!Lm12]&pref=G
dabum |
