Monday, July 02, 2007

Daily Stock Picks

Bottoming -

June 29 5 for July 2:

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

Oversold Stocks

June 29 5 for July 2:

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

Volume Pop

June 29 5 for July 2:

(Volume Pop With High ADX & RSI)

More... Stock Picks Page #1

Technical Indicators

Momentum Oscillator

DBy measuring the amount that a security's price has changed over a given time span, the Momentum indicator provides an indication of a market's velocity and to some degree, a measure of the extent to which a trend still holds true. It can also be helpful in spotting likely reversal points.

While the mathematics are straightforward (subtract the closing price n days ago from the closing price today), do not underrate its value because of its simplicity.

Use the Momentum indicator as a trend-following oscillator similar to the MACD and buy when the indicator bottoms and turns up. Sell when the indicator peaks and turns down. When the Momentum indicator reaches extremely high or low values (relative to historical values) assume a continuation of the current trend...


Trading Education Tutorial
Courtesy of Nirvana Systems

Moving Averages and the Trend

Moving Averages Help Us Identify Trend Reversals

One of the old axioms of technical analysis is that 'the trend is your friend'. This holds true, as long as you trade in the direction of the trend. However, your 'friend' has two faces, and can turn on you to eliminate profits (and your friendship!). Trend reversals can occur at any time and one of the important skills a trader must possess is the ability to identify a reversal. It is easy to exit a position too early if we over-anticipate a trend reversal, and just as easy to watch our profits evaporate if we are too slow to exit the trade.


NASDAQ Chart of the Day
Courtesy of Nirvana Systems

TRGL has built out a large triangle consolidation that could result in a big breakout move soon. Watch the following boundaries for signs of another big move: 16.50 up, and 14.50 down.

Daily Trading Signals

NYSE Chart of the Day
Courtesy of Nirvana Systems

LYV has formed a clear head-and-shoulders pattern at the highs of the latest advance, which is bearish. A break through 21.80 could easily spark a steady decline back toward the 19.00 level.

Daily Trading Signals

Daily Market Commentary
Courtesy of Nirvana Systems

Updated Friday, 6/29 for Monday's market.

Key DOW Levels for 7/2


Above 13,525


Below 13,250

Volatile Session...

- Dow reverses from 13,500, increases in volatility into the Close. The index reversed course and solid off heavily into the afternoon before rallying just before the Close, capping a highly volatile session. The Dow closed the day with a small 14 point loss and continues to hold above key 13,250 support.

- The NASDAQ and S&P each bounced late in the day after a steady decline from resistance. Look for more range movement until a solid breakout from their respective ranges occurs.


The Dow closed the day with a mild loss, but continues to increase in volatility ahead of a potential breakout move from this huge trading range. Keep an eye on the narrowing range for a potential breakout move Monday.


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