Special Announcement

Hello Everyone

I am moving the blog to a new site. The URL is:

http://www.momentum-trader.com

I will be posting my nightly research there. The blog will be less personal, but I wasn’t sharing much personal information about myself here anyway. I want to keep the blog focused on trading. I will still be preparing the nightly research in a post called the ‘Momentum-Trader Report’ (MTR).

Please redirect your bookmarks, RSS readers and blogrolls to the new site. If you have a trading site and would like to exchange links, please email me: motradr@gmail.com, or just link to the site. I will see it in WordPress and will link back ASAP.

A few things about the old blog:

• The original purpose of this blogspot blog was to record my trades, in the hopes becoming a better trader by making them public, and getting insight from other traders. Not only didn’t it help my trading, it may have made my trading worse, by adding pressure of revealing my trading weaknesses. Toward the end of ’07, I was mostly churning money, as my account size remained static.

• I was following stock newsletters for most of 2007. There is nothing wrong with that, in fact, it can be great help learning from more experienced traders. Even with great picks though, I as not trading well. I was lazy in my trading, not paying attention to what the market was doing, and either getting out of winners too early, or holding on too long. I figured there was no sense in subscribing to newsletters if they didn’t help me make money. I can do just as well on my own. So I canceled all my paid subscriptions and decided to do this on my own.

• For the last few weeks, I have been posting nightly stock picks. The results so far have been very good for my account. I had one of my best months ever in February. Sure, it helped that the market rallied, and one good month doesn’t make a great trader, but doing research every night and preparing picks really seems to help. By sharing my research, I feel obligated to put in the time to do the research well. I hope in the process I will become a better trader, and perhaps help some traders who are just starting out.

So I’ve decided expand this operation, that's the reason behind the new site.

Thanks everyone for visiting here, it’s been fun. See you at the new site.

-Mo-Trader

Trading for 2/29/08

I had one trigger today from last nights post. It was TNH. In reading the post from last night, it may have seemed a bit cryptic. I wasn't sure if this stock would be affected by SEED, which gapped down over 30% today,but it was unaffected. I got in TNH with a limit order at 140 after it broke out this morning.

As you can see, it sold off like many picks this week. I closed the entire position with a gain $3.28 per share. I'll happily take it.

Gold did well today, as did my previous pick, KGC:

After Tuesdays action, which saw many of my picks breakout and then retrace below the buy point, I have been considering sticking to day trades, and taking $1, $2 or $3 per share moves, which are not bad at all. I am usually out of at least half of my position at the end of break out day or the day after, But I don't usually like closing the entire position, lest I miss out on moves like these:

WLT, a pick from 2/11:

CALM, a pick posted on 2/18:

MTL, a pick posted on 2/18 (a pick I passed on by the way)

DAR, a pick posted on 2/11:

JRCC, a pick posted on 2/6 and on 2/24:

Here are some stocks I will be watching tomorrow:

Speaking of past picks that have had good runs, past pick AKS is showing a small, high bull pennant:

Would try BRMN at new highs with heavy volume.

CNX:

If PCLN breaks out, it could be huge. I thought this would move with CTRP today, which closed up +14%. Maybe tomorrow:

PTEC was also a past pick which I didn't hold long. Since breaking out, it has given back all of its gains. Not a good sign. But it has some overhead resistance at 17, and if it can break that with heavy volume, it's worth a try:

RRC is worth a try when it breaks into new highs:

Although I day traded this today, I would try again, TNH:

Not a great chart, but would try under the right market conditions, TRA:

VIP is at support, which is 36, which is not far from 38, which is where I would try a few.

I have some big news concerning this blog, which will be posted in this coming Sunday evening's post. Please check back then.

Good luck and good trading!

Trading for 2/28/08

Today was a volatile day that ended basically flat. None of last nights picks triggered My recent picks had a mixed day. Some like JRCC rested, others like CF gave back their gains, and others like OI continued their ascent. I am still keeping tight stops and peeling shares off as these go higher. In fact, I was thankful my stops took me out of ACI and CNX yesterday, as I most certainly would have been stopped out of both today for a greater loss. Both of these stocks still look bullish though, and may offer another buying opportunity soon.

The flat day today is actually a good sign that stocks could move higher from here, and it is the end of the month, so it’s possible.

I posted a chart of GLD on February 18, mentioning that it looked like it could break out, and it did. For those holding GLD, you had a good day.

This move doesn’t look quite as strong as the move it made at the end of ’07, but it does appear that GLD may continue moving higher, which is also good for my recent pick, KGC.

In fact, many metal stocks are doing well, like MTL, which I also had as a pick on the 18^th.

Here are some stocks that I will be watching tomorrow.

Yes, I just got stopped out of this, but it could offer another buy when ACI breaks out on heavy volume.

Ideally, it should really rest a little before breaking out.

CNX could be worth another try.

CPHD came very close to my point again today, which is at 33.

PCLN has one of the nicest charts out there right now.

AG stocks like TNH could get crushed tomorrow due to a poor earnings report by SEED after hours today. This one could go either way.

Good luck and good trading.

Trading for 2/27/08

In my Sunday night post, I posted a chart of SPY, and mentioned that this week, the market should break out of its consolidation pattern and move one way or the other. Today it broke out. As you can see, the SPY broke resistance and went much higher, indicating that the market should continue to move higher.


The market looked very weak at the open today, but a strong intra-day rally that sent almost all of last nights picks past their buy points. The pull back in the afternoon pulled some of these stocks well below their buy points though. I don’t like to let stocks that broke out strong to return too far below their buy point. I’d rather get my money back at break even and try something else. This is why I advocate taking some profits before moving stops. Today offered some great picks for day trades though, and with the market poised to move higher, these stocks could very well move with it.

Here's how they did.

KGC broke out and closed above the breakout point as gold moved well today.

JRCC had a very big move this moving around 10:30EST, but ended the day up +.99%. Not bad on this stock, which has been very good to me.

ACI broke resistance. I got stopped out of this one, but would try again:

CNX broke out and pulled back under the break out point. Could be worth a try again:



ILMN sits above my stop. It deserved a rest after yesterdays move. A strong move above the upper blue line could be another buying opportunity.

I had been watching YTEC for awhile, and putting it in every post the last couple of weeks, but didn't last night. Wouldn't you know it, it broke out today. Volume was very strong, but it to sold off.


AKS was a previous pick that had a great day today.



Since nearly my entire watch list fired off today, I don't have much for tomorrow. CNX and ACI could certainly offer opportunities again tomorrow. Here are some other stocks I will be watching:

CPHD came very close to my buy point today. Maybe we'll see another attempt tomorrow.




I really like the chart on PCLN:



Not a great chart, but VIP is right at the 50 EMA and very close to the upper trend line. If it can break that, it could move much higher. I will risk less if I choose to play this at all.

Good luck and good trading.

Trading for 2/26/08

The market had a good day today, rallying late in the day. IBD has just changed their outlook back to a confirmed rally. So do we go higher? Who knows. But a few of my picks broke out today, but some just barely. Let's look at them:

CMED was a pick from last week that broke out on Friday. It had a nice follow through today.


CF was a pick from last night, and it broke out today and finished strong.

JRCC also broke out. It was apparently downgraded in the morning, and gapped down. I wrote it off then. But it rallied hard all day long and broke the buy point on good volume.



I had two buy points for ILMN, and it broke through both of them, resting just above the top one. I have a stop at the first buy point.


BZP was also a pick from last night, and had a similar day to JRCC. It gapped down then rallied hard. It broke the buy point slightly, then pulled back. Volume was weak though. I would try a breakout tomorrow if volume is there.


I didn't have HES on last nights list, but I did post it last week. It broke out today.


Here are some of the stocks I will be watching tomorrow. Remember, volume is needed to confirm these buy points:

ACI:

A previous pick, CNX:


CPHD:


KGC is a gold stock, and gold broke out last week. If gold goes higher, this stock should do the same.


PCLN looks like it's building a base, which could launch it higher.

Good luck and good trading!

Trading for 2/25/08

It didn't look like any picks were going to trigger on Friday, as the market grinded lower, only to rally sharply in the last 30 minutes of trading. This rally sent CMED, a pick from Thursday, past it's buy point.



It finished the day +6.10%.

Another pick from last week ended the week well. It was one I missed. Hopefully some of you bought it last Monday. MTL:


Last week, I mentioned that the market is in tight consolidation and should break hard one way or another. That has not changed. As you can see from this chart of SPY, the ETF which tracks the S&P 500, it touched a support level on Friday, even piercing it, but closed above it.


This week we should see the market break out of consolidation. Should the market move lower, I may consider QID, which corresponds to twice the inverse of the Nasdaq. I think it's the best looking inverse ETF right now:


Should the market move higher, I will be watching these stocks, and will consider buying as they break the upper blue line on heavy volume.

BZP, a past pick which is still doing well.


Also a past pick, CCC:



Another past pick offering another buy point, CF:



CPHD:


IMLN, which is showing a pattern similar to a cup and handle.


JRCC has been a good stock. It broke out from 2 buy points I posed, and now is showing a third.


YTEC is still holding up.


I removed OI because of a bearish stochastic crossover, but I will watch that too just in case. See last weeks post for the buy point.

Good luck and good trading!