Trading for 2/19/08

I didn't trade on Friday, as I had mentioned last Thursday. However, one of my picks from last week broke out on very strong earnings. Although it gapped up, it would have provided a nice profit to anyone who bought at the open.


I really don't know where the market goes from here. The SPY has formed a symmetrical triangle.

What this chart doesn't show is the tight consolidation going on right now. The Bollinger bands are inside the Keltner channels, which signifies extreme consolidation. This is usually a good indicator that a big move is about to take place (See Chapter 10 of Mastering the Trade by John Carter). So it appears a big move is coming, but which way, who knows? Buying a breakout or shorting once the SPY breaks the poorly drawn support line I made, could be good trades.

I prefer playing the inverse ETF's, so I am looking at buying SDS if the market makes another downward move:


In addition to SDS, the DXD, QID and TWM all look similar. TWM is closer to the 50 day EMA, so a breakout in TWM could also be a good opportunity too.

I missed a great breakout of GLD, the gold ETF, around Christmas. It made a huge run after breaking out of a symmetrical triangle.



It has formed another one, but not as clean. It could also be a bearish Head and Shoulders pattern. So I would only buy if it broke the right shoulder.

If the market doesn't sell off, then I will be looking for opportunities to buy these stocks. I am going to enter this week with some caution though. I don't plan to buy anything during at least the first hour of trading on Tuesday. Then, I will need to see these stocks break above their buy point on heavy volume. THIS IS A MUST. So just because a stock is listed here, doesn't mean that I will buy it. I will continue to be early in taking profits, scaling out as the stock moves higher, and being aggressive with my stops.

Here's the watch list:


Still waiting for AKS to breakout.

I will only add to this on very heavy volume.


Nice bull flag on CALM.

CLF was first mentioned here on 2/4, and it broke out and ran strong the following day. It looks like it could go higher, but earnings are due on Thursday. I won't hold into earnings.

A lot of medical stocks are doing well, and I like CMED the best. A previous breakout that I am looking to try again.


As I mentioned in previous post, I am fascinated by how well CMO is doing, a mortgage stock. I may have an emotional attachment to it, so realizing that, I may pass.

CREE was an earlier pick that broke out strong. I am no longer in this, but would try again at new highs.

ISRG is consolidating at the 50 day MA.


I would try MON for a quick trade if it breaks 120


Would like to see MTL build a fuller bull flag before ot breaks out.


OI is another previous breakout I had. I am no longer in this either, but could try again at new highs.

As you can see by the lines, I really don't know what to do with POT here, but I will be watching it.

RRC is another previous breakout. It held support on Friday.

Another medical stock, and nice bull flag.


And finally YTEC



Be careful out there and good trading.

IBD 100 Stocks Near Their Buy Point for 2/19/08

There are 3 stocks in the IBD 100 that have been highlighted in the Monday edition of Investors Business Daily as being near their buy points.







IBD Current Outlook: Selling threatens market's follow-through

Trading for 2/15/08

A pullback from this rally had to come, and today was the day. Four of my picks barely broke my buy points from last night, but 3 were on pitiful volume, and of course the market pressure early on was a sign it would not be a good day for breakouts. Of the 4 picks that "broke out", CNX, RRC, BMRN and INCY, only INCY had confirming volume. But it sold off quickly after touching the buy point, stopping me out.



EDIT: I also bought BMRN in the morning.

All of these stock could offer new buy points. Volume is key though. As always, I am keeping stops tight on every trade. If it's obvious the trade is not going to work out, I will pass or cut losses quickly.

Because tomorrow is options expiration, and Monday is a holiday, I am planning on taking any new positions tomorrow. I want to go into the long weekend holding my gains. However, if tomorrow is a strong uptrending day, I will be watching these stocks:

AKS, BMRN, CF, CLF, CNX, CMED, CMO, CPHD, PTEC, RRC, YTEC.

Good trading. I will be back on Monday night with some more picks for the coming week.

IBD Market Pulse: Confirmed Rally

By the way, today the Nasdaq met IBD's standards for a rally confirmation, closing up 2.3% on slightly higher volume.

Trading for 2/14/08

Ok, I'm going to get right to it. I had three big breakouts from my picks last night. They were:

CMED. I have been stalking this one awhile. Patience paid off, it broke out huge. Up 8% for the day, and offering another buy point to add to the position once it breaks the upper blue line.



WLT broke out nicely:



CEDC broke out, then gave much of it back. I got stopped out after trailing my stop.



Also doing well was a stock mentioned here earlier, JRCC:



DAR was another stock I had been stalking. It moved high today after breaking out yesterday:




Here are some stocks I will be watching tomorrow. A couple of these were stocks I had bought before, and are now offering new buy points after basing a bit. Buy point is when stock break upper blue line on heavy volume:

AKS:



BMRN, a hot stock picks from a few days ago:



CF:



CNX:



CPHD:



CXO, would like to see this base a bit:



INCY:



PCLN:



RRC:



YTEC:



Also, keep an eye on AUXL tomorrow morning. They report earnings at 10 EST. MAY POP!



Good trading.

Trading for 2/13/08

I don't know if anyone else is reading this blog. Judging by the comments and ad clicks, then I am talking to myself. But no matter, this has been doing my trading wonders! Another big day for my account. That's three in a row. Of course, it's a lot easier when the market moves like this in your favor. I had some breakouts from yesterdays picks, and a few continue to do well. I am being aggressive with stops and with scaling out of positions quickly as the stocks moves up. I am holding very little from yesterday and today.

Here's how some of my stocks did, then I'll post what I will be watching for tomorrow:

BMRN was a pick from last night that had a huge day:



MOS also has a great day, but sold off later in the day, showing some indecision.



COIN was good for a day trade, could be tomorrow as well:



DAR broke though both buy points posted last night:



AUXL has been a nice mover. It broke my buy point posted this weekend. Earnings are due out on Thursday, so I will not hold this overnight. I may try again tomorrow if it breaks the blue line again:



This stock fascinates me. It's a mortgage company! I need to learn more about this company.



They haven't all been winners. I lost money on this one using a 1% stop.




Judging by some of the toppy looking tails on the stocks above, we could be due for a rest. I will be watching these stocks tomorrow though, just in case.














Good trading