Sunday, October 3, 2010

Sunday Sunday

Stocks finished a listless week of trading with none of the indexes gaining more than 1%. Leaders including NFLX PCLN BIDU AMZN continued to struggle, showing a little concern for the markets fledging rally. Volume was lower across the board. If history has any say this October markets should do fine. 7 of the last 9 Octobers in mid term elections years have been winners for markets. But of course we can not assume the markets will ride higher just based on this fact. Let the volume and price action dictate how we trade.

Stocks that have formed exact buy points include: NBL @77.63, BUCY @72.60, both cup with handle formations. Now we have 5 stocks that fit the 3 weeks tight pattern. All these have exhibited this bullish formation when there weekly charts finish 3 consecutive weeks within a tight 1% range. The stocks and buy points are: SQM @50.06 DTV @42.71 CNI @65.25 HAS @45.95 VRSN @32.27.

INFY had a powerful and as we know bullish earnings gap up. Keep it on your watchlist. CRM bounced off its 50 day MA in a bullish fashion.

Both DE and CB can be bought if they find support and bounce off their 50 day MA. DE @67 CB @55. SLB can be bought thru 63 and ANR thru 43.25 as they try to break free from their 200 day MA.

XEC now looking bullish again. In trading you have to be flexible and willing to change your opinion when the market tells you to do so. It can be bought thru 70 as it wrestles away from its 50 day and perhaps forms a double bottom pattern with an additional add on buy point of 77.21 or it could be a bearish head and shoulders pattern creeping back up to the neckline. Let the market tell us this week.

BEXP is forming its right side of base. Watchlist inclusion.

We were stopped out of CRUS for a 50 cent loss. Didnt like the price action, and we sold AKAM for a 4 point gain. Negative price action as well and looking to consolidate the portfolio.

Good luck.


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