Friday, July 07, 2006

 
Daily Stock Picks

Bottoming -

July 6 for July 7:
APPB LLTC NECB PFCB PSUN QSFT WSSI

(
Stocks making a 52 WK low but closing higher than they opened)

Oversold Stocks -

July 6 for July 7:
BONT CMOS

(Stocks closing higher than they opened, crossing up through their 25 Stochastic level, and on 150% + greater than average 6 month volume)

Overreaction -

July 6 for July 7:
MRGE OPWV

(Potential Bullish Bounce: Stocks making a 52 WK low and moving down 10% or more in one day)

More... Stock Picks Page #1

 
Daily Market Commentary

Updated Thursday, 7/6 for Friday
's market

Key DOW Levels for 7/7

UP

Above 11,300

DN

Below 11,100


Consolidating...

- Dow rallies within consolidation range, continues to build out ahead of breakout.

- The S&P and NASDAQ each had mixed reactions compared to the Dow today, as the NADSAQ closed flat, while the S&P took a small gain. Each continues to hold within their respective consolidations, which we will continue to watch closely.

Summary

The Dow closed the day with a solid gain today, but continues to hold within the boundaries of the large consolidation range, which we will continue to watch tomorrow. A breakout through 11,260 or 11,100 could spark a nice medium term move. However, look for continued range movement before such a breakout is seen.

Read More...

 
NASDAQ Chart of the Day


JBHT is holding beneath major resistance at 25.85, which has held since February. Look for weakness beneath this zone unless a solid breakout is seen.

Daily Trading Signals

 
NYSE Chart of the Day



HEW has reversed from the lows with the aid of a volume climax and a small exhaustion gap. Look for a break above 23.50 for continued upside movement.

Daily Trading Signals

 
Technical Indicators

CCT Bollinger Bands Histogram

The CCT Bollinger Band Oscillator, also sometimes referred to as the CCT Bollinger Band Oscillator, reconfigures John Bollinger's classic Bollinger Bands (envelopes plotted at two Standard Deviations above and below a moving average) by drawing two parallel lines replacing the erratic envelopes.

The parallel lines represent a measurement of two Standard Deviations from the mean and are assigned a value of zero and 100 on the chart. The indicator represents the price as it travels above and below the mean (50%) and outside the two standard deviations (zero and 100). Penetration of the upper band represents overbought conditions while penetration of the lower band signifies oversold conditions.

Usage of the CCT Bollinger Band Oscillator to identify "failure swings" and "divergences" can lead to significant reversals...

Read More...

Thursday, July 06, 2006

 
NASDAQ Chart of the Day


SHLD is forming a bearish head-and-shoulders pattern at the highs of the year's advance. A downside break through the neck line at 150.00 could send the stock tumbling back toward 130.00.

Daily Trading Signals

 
NYSE Chart of the Day


DJ is consolidating at the lows within the boundaries of a tight triangle. A breakout from this triangle should pave the way for movement. Watch 35.00 up and 33.75 down.

Daily Trading Signals

 
Five Fibonacci Tricks

Fibonacci jumped into the technical mainstream late in the bull market. Futures traders had it all to themselves until real-time software ported it over to the equity markets. Its popularity exploded as retail traders experimented with its arcane math and discovered its many virtues.

Fibonacci ratios describe the interaction between trend and countertrend markets -- 38%, 50% and 62% retracements form the primary pullback levels. Apply these percentages after a trend in either direction to predict the extent of the countertrend swing. Stretch a grid over the most obvious up or down wave, and see how percentages cross key price levels.

Convergence between pattern and retracement can point to excellent trading opportunities. Keep in mind that retracements work poorly in a vacuum. Always examine highs, lows and moving averages to confirm the importance of a specific level
...

Read More...

 
Daily Market Commentary

Updated Wednesday, 7/5 for Thursday
's market

Key DOW Levels for 7/6

UP

Above 11,200

DN

Below 11,100


Pull-Back

- Dow pulls back from highs, holds at lows.

- The S&P and NASDAQ each sold off steadily to begin the day and look poised to pull back even further. The S&P is holding above near-term support and the NASDAQ is consolidating at lows, watch these patterns closely.

Summary

The Dow closed the day lower after beginning the session with a swift decline. The index is holding within the boundaries of a clear consolidation, which will clearly give us out next medium term move.

Read More...

Wednesday, July 05, 2006

 
Recent Picks / Trading Ideas
Weekly Market Update July 5
Bumping against a resistance. The 1590 level on the NDX is a major level, the confirmation level for a possible change of trend, from a long term down trend to a possible up trend ...
Monthly Market Recap June 3
The longer term trend is now bearish, the short term trend is bullish. We now have conflicting trends with a slight bias to the long side of the market ...
Bullish Stochastics, Volume and Price Movement June 27
After falling by nearly 30% from the April highs, and falling nearly every day, SMTC is showing signs that a trend change is likely ...
Stochastics Reversal June 26
RMBS - After falling by more than 50% from the April highs stock is showing signs that a trend change is likely ...
Swing Trade of the Week June 22
NTRI: Since failing support at the 20 day EMA, stock has entered into a descending triangle consolidation and is sitting near to support. Look to go short at ...
Swing Trade of the Week June 15
EXPE: Stock experienced large gap has since bottomed out, broke up, traded at the upper end of the breakout candle, representing a consolidation and possible setup for further upside ...
Worst Stocks Scan May 19
A couple times a year, it is a good idea to scan and investigate those stocks that performed worst over the last 52 week; you occasionally get some good ideas ...

 
Daily Stock Picks

Bottoming -

July 3:
CMOS IFLO NBIX SIRO

(
Stocks making a 52 WK low but closing higher than they opened)

Oversold Stocks -

July 3:
BABY

(Stocks closing higher than they opened, crossing up through their 25 Stochastic level, and on 150% + greater than average 6 month volume)

Overreaction -

July 3:
CLWT MRGE SCOX

(Potential Bullish Bounce: Stocks making a 52 WK low and moving down 10% or more in one day)

More... Stock Picks Page #1

 
Daily Market Commentary

Updated Monday, 7/3 for
Wednesday's market

Key DOW Levels for 7/5

UP

Above 11,300

DN

Below 11,100


Steady Advance

- Dow trends steadily higher in shortened session.

- The S&P and NASDAQ each pushed higher today, closing the day at the session's highs. Each index continues to look strong within the current uptrend, but will likely need a larger continuation pattern for bigger strength.

Summary

The Dow ended the day at the highs of the day, but is holding within the boundaries of a very tight consolidation. Watch this range closely, as a breakout will determine the next key move.

Read More...

 
Technical Indicators

Intraday Momentum Index

Developed by Tushar Chande, the Intraday Momentum Index is a combination of the Relative Strength Index and Candlestick Analysis.

The IMI is calculated like the RSI but uses the relationship between the intraday opening and closing prices to determine whether the day is up or down. When the close is above the open, it is an up day. If the close is below the open it is a down day. White candlesticks signify an up day, black candlesticks used for down days.

As with the RSI, overbought conditions (and lower prices ahead) are indicated when the index rises above 70. Values below 30 indicate a potential oversold situation and higher price ahead. Remember, as with all overbought/oversold indicators, you should first quantify the trendiness of the market before acting on any signals...

Read More...

Monday, July 03, 2006

 
Profits Run

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Stock Trading Advisory Service

Daily Stock Trading Recommendations That Tell You Exactly Which Stocks To Buy & Sell... Try it for 30 days for just $1!

Read More...

 
Daily Market Commentary

Updated Friday, 6/30 for Monday's
market

Key DOW Levels for 7/3

UP

Above 11,250

DN

Below 11,025


Holding Gains...

- Dow pulls back slightly, holds majority of yesterday's gains.

- The S&P and NASDAQ each held gains after yesterday's blowout session. Look for continued sideways movement to occur in the near-term, as the indexes gear up for more strength.

Summary

The Dow closed quietly lower and is currently holding at the highs of the latest advance of the last several days. The index look s very strong right now, but needs to get a solid break above 11,300 is continued bullish momentum is to be seen.

Read More...

 
NASDAQ Chart of the Day



ONXX is getting a big breakaway gap through 16.00, which is very bullish after the extended decline. Watch for continued strength above 15.70, as the stock continues its advance.

Daily Trading Signals

 
NYSE Chart of the Day



PYX is holding at a major support level at 10.00, which has held since March. Watch this level for a big break or bounce for the next key move.

Daily Trading Signals

 
Overbought/Oversold Overload

The best way to understand overbought or oversold markets is to study the nature of supply and demand. At any given moment, a finite pool of buyers and sellers is available to take action on a particular stock. The trading activity of this crowd usually stays within fairly narrow boundaries.

It's important to note that overbought/oversold markets are relative to a trader's time frame. Some reversals are simple pullbacks in the underlying trend, while others represent major market turns. It is vitally important for traders to define their holding period before reacting to short-term price swings. Major profits will be lost by planning the trade in one time frame but executing it in another...

Read More...

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