Is it me or is the market kind of boring recently? I must be getting used to these perilous one day drops that seem to look like the end of capitalism.
So what do I do when I’m bored? I scan for TD Sequential charts. LRCX completed a perfected countdown last week. I would gun for a bounce to 44, with a 8% stop-loss.
Chesapeake Corp (CSK) gives an interesting example of a different way to use a TD Sequential Buy countdown to identify a low-risk short. The method is very simple, you first identify a chart that has closed below it’s TD Sequential Buy stop-loss and has then climbed back for the retest. The entry is the failed retest. Chesapeake has failed its retest and is a good short play. Look for it to head back to the lows 3.05.
Here are a couple swing-type trades with some energy providers. PG&G Corp (PCG) and Progress Energy (PGN) have both completed TD Sequential countdowns at the lower end of their consolidations. They are both near well defined stop-loss points and give a nice risk-reward ratio. If you can’t decide between the two, I would recommend the PGN chart.
After a breakout from a double bottom base, WW bounced off of the 50 day moving average, giving you another chance to get into the stock. This is a text book IBD chart formation.
I have owned it since the original breakout and added more yesterday.
I’m as guilty as the next guy, but I think it is time to stop declaring the latest contrary indicator.
Oh wait, can I throw just one more into the mix? Yes? Ok thanks.
Sorry, Fox Business! CNBC Has Best Week In Five Years
That was the last one, I promise (or at least until the next bear market).
I started an initial position for three stocks this morning.
CH Robinson Worldwide CHRW
Nike NKE
Landstar System Inc LSTR
I also added to my position in Axsys Technologies AXYS
Is there an opposite of crash? Rally or melt-up are terms that don’t seem to describe what happened today.
I not only had the pleasure of sitting right in front of some screaming baby on my flight today, but I also got to watch all today’s market action on Delta’s live CNBC feed. It was pretty fun, especially for a bull.
My bullishness has been based on technicals and sentiment. If you are looking for an excellent fundamental reason to be bullish, go read a recent post from Doug Kass. It might be a real eye-opener.
My flight was cancelled so I have some extra time for a post. As is the case for most hotels, guests are provided a copy of USA Today, which is the only time I will ever look through this lame publication.
So what is on the front page? The headline reads, ”Red Flags in Bear Stearns’ Collape” and the lead says “If the US economy were a car, all of its warning lights would be flashing red”.
Warning lights? I think anyone who has been following this crisis would say that those lights would have been flashing last summer. I would argue that the car is either in the shop being fixed, or is sitting in the parking lot waiting for its owner to pick it up and drive away. I’m still bullish and am more convinced than ever that the selling has been exhausted.
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