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Issue #85 
August 17, 2008 | Newsletter
The newsletter with chart analysis for stocks and stock indexes |
Stock Indexes Analysis/Evaluation
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| DOW Began the Week With a Bang, but Ended With a Whimper!
DOW Friday close at 11660
The DOW had a reversal type week by making a new 7-week intra-day high but failing to close above the previous week's high or the previous week's close. Such a reversal seems to indicate that the index no longer has the strength to extend the recent up-trend and is likely to begin moving back downward. In addition, the index not only tested successfully last week's closing high at 11734 but confirmed last week's close as a successful re-test of the major 6-year high close seen back in January 2000 at 11723. The DOW also confirmed that last week's close was a successful re-test of the 200-week MA.
Even though the action on Friday did not give any indication that the sellers have taken back control, it is evident on the chart that these past two weeks have been crucial and likely definitive. By failing to break above levels that are of major long term importance, at a time that the bears were totally on the defensive, the bulls have lost the momentum they built during the last few weeks, and now need strong fundamental help to keep hopes alive of higher levels. Such fundamental help is not likely to come.
On a daily closing basis, resistance is now very strong at 11782. On an intra-day basis, resistance is strong at 11698-11718. On a daily closing basis, support is decent at 11533, and then again at 11453, 11284, and 11131. Strong support is found at 10963, on a daily closing basis as well. On an intra-day basis support will be decent at 11500 where the 20-day MA is located, as well as previous weekly closing high.
In looking at the daily chart, since the low at 10828 was made back in July 15th, each subsequent correction low has been higher than the previous one, thus showing a well defined short-term up-trend. That means that if the most recent previous intra-day low at 11451 is broken, the index is likely to be heading lower and the bears will be back in control.
There is some decent resistance, on a daily closing basis, at 11556 and though the DOW closed above that level on Friday, it only did it by a few points. If the index closes in the red on Monday, it will be one additional and likely telling sign that the upside is over.
After the strong momentum the DOW exhibited a week ago Friday, followed by the rally and intra-day high at 11867, it seemed the bulls had temporarily broken the back of the bears and that the index would be rolling up to the 12000 level. Nonetheless, the index failed to follow-through on that strength and the momentum the bulls had built faded. On Friday, the bulls tried to generate a rally but the rally was unsuccessful when the previous weekly high close at 11743 was not even reached. Taking into consideration all the week's action as well as the chart points at the end of the week, I would have to say the probabilities of a move back down to test the recent lows, and even perhaps re-start the downtrend, have increased.
Probable trading range for the week is 11728 to 11326. Probable close next Friday is 11497.
NASDAQ Friday Close at 2453
The NASDAQ continues to outperform the other indexes and this past week it was able to reach the converging 50 and 100 week MA's, eclipsing both of the other indexes which have not even been able to get above the 200-week MA. It is evident that the general market has been stronger than the heavily financially laden SPX, or the blue chip DOW.
Nonetheless, in reaching both the 50 and 100 week MA at 2473, the index backed off in a spike and reversal type fashion (new highs and a red close) thus giving signals that the upside rally may be over.
Resistance is very strong at Friday's high of 2473 in the form of the 50 and 100 week MA. In addition, over the past 2 years there have been 18 previous daily highs between 2468 and 2483, giving that area added resistance strength. Above 2483, resistance is major up at 2530-2537. Support is decent down at 2430 where a previous intra-day low of consequence is found as well as where the 200-day MA the index recently broke above is located. Support is very strong down between 2393 and 2406 as there have been 11 lows during the last 2 years in that range. Below that level support is decent down at 2350.
It seems likely that the NASDAQ has reached a level of resistance that will be difficult to break above, without fundamental help. The spike type action seen on Friday and the close in the red (reversal signal) are signs that the index will likely be heading down this coming week to at least test the breakout of the 200-day MA at 2430.
Nonetheless, with the possible failure signal seen on Friday a lower low than last week at 2403 is likely to be seen this coming week. On the weekly chart, the index does show an intra-week support of consequence at 2387 and that may end up being an objective low for this coming week.
It is very unlikely that the downtrend in the indexes has become an up-trend and therefore a sideways trend is likely in effect. In the NASDAQ, the sideways trend seems the most evident as this index failed to make new 2-year lows 5 weeks ago, contrary to what the other two indexes did. Keep in mind that the NASDAQ has not yet had any type of re-test of the recent lows at 2167 and therefore, if in a sideways trend, drops down toward 2200 are likely.
With last week trading range being 2403 to 2473, if the high of the rally was made last week, this week's probable trading range is likely to be 2387-2457. Possible close next Friday is 2401.
S&Poors 500 Friday close at 1298
The SPX was able to manage a minute gain over last week's closing price of 1296 but when compared to what the NASDAQ accomplished, it must be considered a major disappointment. In addition, the 1300 level has been bandied about as a very important pivot point for the index and yet on the close of the week, the index was still unable to pierce that level on a weekly closing basis.
It is clearly evident that the heavily financially laden index is having problems generating any kind of a meaningful rally. Without the financials establishing themselves as having found a bottom, it is unlikely the SPX will be able to rally any further. In addition, in contrast with the other indexes, the SPX has been totally unable to even get close to the 200-week MA (presently at 1326) that it broke below 8 weeks ago. Such failure in an up-trend is indicative of an index that is in problems.
Resistance is major at 1326, with the 200-week MA as well as from a previous high of consequence from May 2006. Minor resistance is also found at 1314, from several weekly highs also made in 2006, prior to the rally to 1326. Psychological resistance at the 1300 level is now stronger as well, due to the failure to close above that level on Friday. Some minor support is seen at 1288 but strong support is found between 1270 and 1274 from 7 previous intra-day lows and 7 previous intra-day highs at that level, as well as from the 20-day MA currently at that price as well. Below that level, there is minor support at 1260 and then again at 1248, and major support at 1236 from a double bottom at that price on the weekly chart.
The SPX is likely to continue to be the key to what the indexes will do over the next few months. With the financials having been such a strong catalyst to the drop in the market this year, it is likely that without the SPX showing signs of recovery, that the market will be able to generate any further upside movement. So far, the index has been a total laggard and the consistent failure to rally in any meaningful way, must be seen as a signal that the market is not yet ready to generate any further upside at this time. Like with the DOW, though, since the low at 1200 was made back in July 15th, each subsequent correction low has been higher than the previous one, thus showing a well-defined short-term up-trend. A break below the most recent low at 1275 could be a catalyst for the bears to get back in control.
Probable trading range for the week is 1300 to 1262. Possible close next Friday is at 1270.
In looking at the charts of all three indexes, it seems probable that the coming week, starting on Monday, the indexes will be under selling pressure and heading lower. Nonetheless, the overall feeling that commodity and oil prices still have more downside to come will likely act like a psychological brake to any strong movements downward.
I expect that the week's high should be seen on Monday but downward pressure throughout the week should be slight and with little volatility. This could be a transition week where the market slowly comes to the realization that upward movement will be difficult, even if oil and commodity prices continue lower. It is unlikely that commitment on either side, bulls and bears, will be strong. Friday's boring late action seems to underline that fact.
The fly in the ointment for the next couple of weeks might be the fact that everyone seems to be convinced that oil will reach $100 a barrel (some even say $80) and that commodities have more to fall. When "everyone" is talking with conviction about such objectives, often those objectives are not realized. The "herd" mentality is one of the great pitfalls that investors often fall into.
Monday's action should determine whether my chart evaluation is correct.
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Stock Analysis/Evaluation
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CHART Outlooks
With the indexes likely to start heading lower, short positions will be the main thrust this week.
WDC (Friday Close at 29.46)
WDC is a company that started a strong up-trend in Apr07 from 16.21 that culminated in Jun08 at 40.00. The stock then started a correction/downtrend that saw the stock reach a low of 27.68 two weeks ago. Though no sell signal has yet been given on the weekly chart (previous weekly lows have not yet been broken) the stock is at a very important psychological and pivotal level that offers a very good risk/reward ratio for a short trade. In addition, 3 weeks ago the stock received an earnings report with a negative outlook and the stock had a strong gap down from 33.31 down to 31.41. The same day the negative earnings report came out, the company was downgraded by Needham.
It is evident WDC is on the defensive and with a negative outlook for the future as well as the probability the stock indexes are heading lower, it is likely the resistance at $30 will prove difficult to overcome and more downside will be seen.
Resistance is decent between 30.27 (a previous high of some consequence) and 30.35 where the 20 and 200 day MA's are located. In addition, the $30 level should act as a strong psychological resistance. On a daily closing basis, resistance is very strong at 31.22-31.47, where there are 3 previous daily closes of importance prior to the rally up to $40. On a weekly closing basis, there is decent support at 28.46 as that was the most recent low weekly close as well as a small correction low close prior to the move to $40. On a daily closing basis, the support is decent at 28.08, decent again between 26.69 and 27.09, and major down at 23.61. Strong support will also be found at the 100-week MA down at 24.35.
WDC has been under pressure, both from fundamental news as well as on the chart. Nonetheless, on the weekly charts, no signal has yet been given stating the up-trend is over so the short trade must be done with caution. In looking at the charts, though, the probabilities have increased strongly that the stock is likely heading lower. Since the risk/reward ratio of a short position is quite good, as well as the probable state of the stock indexes primed for lower prices, the trade seems like a must do.
Sales of WDC at 29.70 or better and using a stop loss at 30.55 and having an objective of a drop down to 24.35 offers a risk/reward ratio of 6-1. The stop loss, though, is a very sensitive one and if you want to give the stock a bit more room, you could place it at 31.65. It is highly unlikely that at this time the stock will get into the gap area at 31.41. In addition, there is a very strong daily close resistance at 31.25 as well as a previous intra-day high of importance at 31.53.
My rating on the trade is a 7 (on a scale of 1-10 with the strongest probability rating being 10).
OSK (Friday close at 17.25)
OSK is a stock that has been falling down like a rock since a high of 63.55 was made in October of last year. In April of this year the stock seemed to have found a support level at $35 and was able to generate a rally above $42. In June, though, the stock started to break the support and within a few days, probably due to a negative earnings report or news, the stock gapped down and dropped precipitously to the 16.25 level in a matter of a week. During a period of 3 weeks the stock tried to build a support level and was successful in generating a rally up to 20.95. Nonetheless, two weeks ago the earnings report came out bearish and the stock once again gapped down from 18.04 down to 17.25 and promptly proceeded to break the previous support level at 16.25 and generate a new sell signal.
It is evident this company is faltering fundamentally, as the drop in price over a period of 10 months has been impressive. It is also evident that the buyers must now be greatly reluctant to step up and support the stock until the fundamental scenario changes. With the negative earnings report, gap down opening, and failure to close the gap during this latest rally in the indexes, it seems the stock is ready to head lower.
Resistance is very strong between 17.50 (most recent intra-day high) and 17.80 (several previous high closes at that price). In addition, the gap, now between 17.50 and 18.04 should offer strong resistance (if the stock is heading lower, gap should not be filled). On a daily closing basis, support is decent between 15.93 and 16.00 as that level has now held firm for the last two weeks. On an intra-day basis, the recent low at 15.19 should be considered support as well. Underneath 15.16, support is non-existent until the 13.75 level is seen and even then, that support must be considered only decent to perhaps minor. Stronger support is found between 11.75 and 12.00. Nonetheless, to find these supports you have to go back to 2003 and therefore they are not supports that can be relied upon to hold.
This is a stock that was in an oversold condition but with the sideways trading action of the past 2 weeks, the oversold condition has been relieved. With the indexes likely starting a move down, the stock will no longer have that support and with so much bad fundamental news, shorting the stock at this time offers a very good risk/reward ratio and a high probability trade.
Sales of OSK between 17.25 and 17.50 and having a stop loss at 18.03 (closure of the gap) and having a minimum objective of 13.75, offers a 5-1 risk/reward ratio.
My rating on the trade is a 7.5 (on a scale of 1-10 with the strongest probability rating being 10).
IR (Friday close at 40.17)
IR is a stock that over the past 4 years has traded 60% of the time between 41.50 and 35.00. On those occasions the stock broke out of that trading range it was likely due to some fundamental change that generated movement above or below that range. At this time, with the stock trading above $41 once again, there does not seem to be any fundamental news that has generated the recent rally, other than the rally in the indexes. With the indexes likely heading lower, shorting the stock seems to offer a high probability trade with clearly defined and good risk/reward ratios.
IR made a new 45-month low 5 weeks ago with a drop down to 33.56. This drop came in conjunction with the drop in the DOW to 10828. The subsequent rally has been in direct correlation to the rally in the index. With the high this past week in IR having been 41.14 (a few ticks from the top of the range mentioned above) and the indexes also giving signals that a top has been found, the stock seems to be a good short at this time.
Resistance is very evident and strong between 41.39 and 41.75. In looking back 4 years, the stock has had a total of 7 intra-week highs in that range from which drops down to at least $37 (in most cases $35) occurred. In addition, the 20-week MA is at last week's high of 41.14 and the 200-week MA is at 42.00. On the daily chart, resistance is decent at 40.92 (100-day MA), at 41.57 (previous intra-day high of consequence, and at 41.97 (many intra-day lows) and major at 42.60 where the 200-day MA is currently located. Support of any consequence, on the weekly chart, is down at 38.00, but that support must be considered minor. Stronger support is seen at 36.92 and major support is down at the $35 level. On the daily chart, support is decent at 38.31 (most recent intra-day low) and at 37.50 (20 and 50 day MA's). Strong support is down at 35.40 and again at 34.46.
On Friday, IR rallied up and above the 100-day MA but failed to maintain itself above and sold off to close near the lows of the session. In addition, the rally looked like a breakout of a flag formation but with the close below the top of the flag, it will likely be seen as a failure-to-follow-through. With the stock indexes likely heading lower for the next couple of week, it seems likely that IR will be doing the same.
Sales of IR between 40.59 and 40.69 and placing a stop loss at 41.85 and having an objective of at least a drop down to $37 but likely down to $35, will offer a risk/reward ratio of at least 4-1.
My rating on the trade is a 7.5 (on a scale of 1-10 with the strongest probability rating being 10).
HRB (Friday closing price 24.99)
HRB has been on a strong weekly up-trend since January when the stock fell all the way down to 16.89. After testing that low successfully a few weeks later, HRB rallied over a period of 7 weeks up to the 24.64. The stock has been mirroring the action in the DOW and when the index found its 13157 top in April, the stock also topped out and dropped $4 down to the 50-week MA at 20.40. During the latest rally in the index, HRB has also mirrored the index and has rallied over $5 during the last 8 weeks. The stock has now reached a major resistance level about the same time the index seems to have found a top. If the indexes are heading lower, it is likely HRB will be doing the same.
Since August 2004, HRB has been up to the 25.75 level on 7 different occasions and only on 3 occasions was the stock able to get above that high. In 2 of those occasions, the rally above that level only lasted one week. In the other 4 occasions, the stock stopped at or just below 25.75 and saw a drop of at least $3.
On a weekly closing basis, resistance is very strong between 25.25-25.64 and on an intra-week basis at 25.75. Further resistance, on a weekly closing basis as well is also seen between 25.91 and 26.25. On a daily closing basis, resistance is strong at 25.41. On a weekly closing basis, support is almost non-existent until 22.95/23.35 is reached. On a daily closing basis, though, support is quite decent at 24.40 from a previous daily closing high, a previous daily closing low, as well as from the 20-day MA. A break below 24.15, on an intra-day basis, shows no support whatsoever until the 22.95 level is reached. At that price you have two previous intra-day highs, one previous intra-day low of consequence, as well as the 100-day MA. Should that level break, drops down to the $22 level would be likely.
Due to the consistent strength and rally over the past 4 months it is likely that the bulls are feeling quite comfortable and secure in the stock. Such complacency could cause a strong sell-off should the stock fail to go any higher. The resistance up at the 25.75 level has been consistent over the years and goes all the way back to 2002. This is not a volatile stock or one that offers a lot of risk. In addition, over the past 5 years, the stock has traded 70% of the time between $20 and $25, with two short-term exceptions when the stock rallied up to the $30 level and two short-term exceptions when the stock dropped down below $17. In essence, the probabilities are high that the stock will be heading lower from here.
Sales of HRB between 25.23 and 25.39 and using a stop loss at 26.00 and having an objective of 22.95 will offer a risk/reward ratio of 4-1.
My rating on the trade is an 8 (on a scale of 1-10 with the strongest probability rating being 10).
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Updates
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| Updates on Held Stocks
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Open Positions and stop loss changes
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| NUAN had an impressive two-day rally that started a week ago Friday, anticipating a bullish earnings report. Nonetheless, the earnings report did not live up to expectations and the stock gave up all of its gains in one day. The stock seems to be building a short-term head & shoulders formation with the left shoulder at 16.90, the head at 17.98 and the possible right shoulder at Friday's high of 16.86. The necklines being at 14.91 and 15.91. The h&s formation has not yet been established but it the stock fails to rally significantly (above 17.81) and it breaks below 15.91, the h&s formation will be formed and the objective would be 13.91. Resistance is very strong at 16.90 and support strong at 15.96-16.00. Any break above or below those levels will likely generate strong movement in that direction. ELON had a reversal day on Friday with higher highs and lower lows than the previous day. Nonetheless, the reversal failed to stimulate a strong close and left a lot of questions unanswered. The stock has strong resistance between 14.06 and 14.09 (200-day MA and previous high) and at 14.40 (100-week MA). It is possible that the stock may reach the 14.00 level on Monday but if the indexes act as anticipated, it is likely the stock has reached a temporary high and drops back down to support will occur. After having rallied for 8 straight days from the successful re-test at 10.03 of the previous low at 9.91 (18-month low), the stock seems to be primed for a move back down to test where the support is now presently at. A move below Friday's low at 12.81 will likely generate a move down to 11.54-12.06. a move above 14.40 would be strongly bullish. STP rallied aggressively on Friday, based on good fundamental news in the form of a major contract having been signed. The stock gapped up from 34.99 to 35.15 and closed out the week above a weekly close resistance at 36.24. Nonetheless, the stock failed to confirm the breakout by closing below a strong daily closing resistance at 37.69. The stock was able to break above the 50-day MA and shows no intra-day resistance until the 40.42 level is reached. At the present time, that must be considered the objective of this rally. Support will be found at the 50-day MA at 36.50 and some support at 37.26. It is also evident that the most recent previous high at 37.98, prior to Friday's high at 38.15, will now become an important pivot point. Any intra-day rally above 37.98 should generate rallies up to the 40.42 level. Breaks below 36.50 will be considered negative. YGE was able to confirm that last week's close at 14.61 was one more successful re-test of the important weekly support at 14.50. Nonetheless, in spite of the major rally in STP the stock was not able to get up to or close above 16.73 which would have been a strong buy signal. The stock did close right at a recent daily high close as well as the 20-day MA at 15.68. This means that a higher close on Friday would be positive. A close above 16.99 would not only break a previous daily close of consequence but also the 50-day MA. Should such a close occur, rallies up to the 100-day MA at 19.13 would be likely. A close below 15.46 might be short-term negative. VLO seems to be having problems making a decision on what to do. For the past 4 trading days the stock has had lower highs but the 33.50-33.70 level has been a very strong support base. That level is where the 20-day MA is currently located. It seems highly probable that the stock will have some definition this coming week as the trading ranges have shrunk to a bare minimum and this is a volatile stock by nature. Any close above 34,72 will likely be a catalyst for further upside with an immediate objective of reaching the 50-day MA at 37.28. Any close below 32.94 would be a negative. JBL continues to close higher each week confirming that there is no weekly resistance of consequence until the $20 level is reached. On the daily chart, the 18.52 double top (18.42 on a daily closing basis) seems to have been taken out with Friday's high at 18.78 and close at 18.50 (highest daily close since Nov 14th). There seems to be nothing left to stop the stock from reaching the $20 this week. Even then, the resistance at $20 is from previous lows (not as strong as previous highs) as well as from the 100-week MA. Possibility of higher prices in this stock is strong. A close below 17.31 would be negative. HPQ was able to confirm that last week's close at 45.82 was a successful re-test of the 20-week MA. Nonetheless, the stock was able to stay above the 100-day MA it broke above a few weeks ago and therefore no sell signal was given either. The trading range in this stock has shrunk to a bare minimum and a daily close above 45.80 or below 44.80 should generate further movement in that direction. This is a stock that is likely to follow the indexes and if my chart evaluation of the indexes is correct, the stock should be under some selling pressure this week. HON finally broke the trend of the last 5 weeks of weekly closes higher than the previous week. It could be a signal that the stock is now ready to move lower toward the original objective of my chart evaluation down between $42.50 and $45. Though the stock has had higher weekly closes the last 5 weeks, the reality is that they have been very weak as the stock has not even been able to test, on a weekly closing basis, the breakdown point at $54.30 or the 100-week MA at 53.15. For the last 6 weeks the stock has been in a sideways trading range but if the indexes starts heading lower, this stock will likely take it on the chin. A daily close above 51.56 would be slightly bullish, while a close below 49.93 slightly bearish. RIO was unable to generate a close above the 100-week MA at 25.75 on Friday and looks weak. Nonetheless, the stock was able to close above the lowest daily close in 49 weeks at 24.67. It is evident that with the failure to generate a successful re-test of the 100-day MA that the stock is on the defensive and facing an important week. Breaks of any line of consequence require a second close. If the stock is able to reverse this past week's close next Friday and close above 25.95, this will be seen as failure-to-follow-through action. Nonetheless, the burden of proof is on the shoulders of the bulls. Keep a close eye on the recent daily low close at 24.67 and if the stock closes below that level any day this week, it will be time to liquidate long positions. SNDA traded in an indecisive manner this week but was able to close above the 50-day MA and with the spike type day it had on Friday, will likely see some follow-through this coming week with a likely intra-day high of 27.50. On a daily closing basis, nonetheless, the stock has decent resistance between 26.55 and 27.18 that is unlikely to be taken out unless the stock is heading higher. On the weekly chart, the stock still shows that a re-test of the recent low at 20.85 is likely and a drop down to 22.30 would be the most likely. It seems that the stock is not yet ready to show weakness and therefore a possible trading range for the week could be 27.50 to 24.87. Possible weekly close next Friday is 24.99-25.40. If this occurs, the following week should show further weakness. A close above 27.95 would be bullish. TRA tested the 200-day MA successfully this past week with a daily close at 43.65 and a subsequent close up at 47.08. On Friday, though, the stock did close below a weekly support at 45.32 and below the 20-week MA likely giving the stock one more week of selling pressure. On a weekly closing basis, major support is found at 41.65 where the 50-week MA is currently located. Nonetheless, if the stock is able to hold above the intra-week low at 42.05 and go above the intra-week high of 47.38, the drop this past week to 42.05 might be seen as a successful re-test of the previous intra-week low at 41.25 as well as the 50-week MA. It is evident that the next two weeks will be of major importance to this stock. The stock made a new all-time high the week prior but failed to follow-through and is under pressure because of that failure. If the stock is able to shrug off the bears this week and not break the 50-week and 200-day MA's, on a daily closing basis, it is highly likely the stock would go back up to the $53 level to re-test the all-time high. A daily close below 43.65 would be negative and a weekly close below 41.65 would be quite bearish. A daily close above 47.28 would be short-term bullish. KGC, after a sharp 4-week drop in price from a high of 25.26, reached a previous two year level of importance at 14.70 this past week. This level is the area from which the stock began to rally 2 years ago and should act as strong support. The stock was severely affected by exodus seen in commodities as well as in the falling price of gold. The stock continues to be under pressure, though, as the stock made a new 10-month daily closing low on Friday and confirmed the break of the 100-week MA at 15.70. The support down at 14.70, though, is quite strong and with the oversold condition the stock finds itself under, it is likely that this coming week the stock will settle down and trade in a sideways fashion. On the weekly chart there is no resistance until the 18.00 to 18.98 is reached. If the stock is able to hold itself above last week's low of 14.59, rallies up above last week's high at 16.70 and up to the 18.00 level are likely. Any daily close below 14.70 will be short-term negative while any daily close above 15.58 will be short-term positive. ALO hit a brick wall this past week when the stock reached a major resistance level up at the $25 level. Nonetheless, the stock was able to close higher this week than last week and kept the possibilities of further upside alive. On the weekly chart, strong resistance is found at 24.87 from a previous high close as well as from the 20-week MA. On the daily chart, there is a very evident double top at 25.00 as well as the 200-day MA located at 24.87. It seems that positive fundamental news or help from the indexes is needed to generate further upside. With the earnings report having been negative and the indexes likely to be under pressure this coming week, it seems likely the stock will be heading lower. A daily close below 23.99 would likely generate a drop down to the 22.67-22.92 level. Drops down to 22.10 would then be possible. Any daily close above 25.00 would be bullish.
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1) JBL - Purchased at 18.55. Averaged long at 17.12 (3 mentions). Stop loss raised to 17.21. Stock closed on Friday at 18.50.
2) VLO - Purchased at 33.75. Averaged long at 31.89 (3 mentions). Stop loss raised to 32.84 on a stop close only basis. Stock closed on Friday at 34.23.
3) HPQ - Averaged short at 44.63 (2 mentions). Stop loss at 45.90 on a stop close only basis. Stock closed on Friday at 45.59.
4) ELON - Liquidated at 13.26. Averaged long at 12.41. Profit on the trade of $170 per 100 shares (2 mentions) minus commissions.
5) SNDA - Shorted at 27.33. Stop loss at 27.25 on a stop close only basis. Stock closed on Friday at 26.81.
6) STP - Averaged long at 41.11 (3 mentions). No stop loss at present. Stock closed on Friday at 37.38.
7) ALO - Shorted at 21.84 and again at 23.02. Averaged short at 22.43. No stop loss at present. Stock closed on Friday at 24.55.
8) YGE - Averaged long at 19.156 (3 mentions). No stop loss at present. Stock closed on Friday at 15.64.
9) HON - Shorted at 52.22. Stop loss lowered to 52.42. Stock closed on Friday at 50.93.
10) TRA - Purchased at 44.83 and again at 46.05. Averaged long at 45.44. Liquidated at 47.14. Profit of $340 per 100 shares (2 mentions) minus commissions.
11) RIO - Purchased at 27.43 and again at 26.34. Averaged long at 27.06 1 1/2 mentions). Stop loss at 23.90 or at 24.42 on a stop close only basis. Stock closed on Friday at 25.34.
12) TRA - Purchased at 44.83 and again at 46.05. Averaged long at 45.44. Stock closed on Friday at 44.28.
13) KGC - Purchased at 15.63. Stop loss at 14.60 on a stop close only basis. Stock closed on Friday at 14.94.
14) TRA - Purchased at 44.90 and again at 43.94. Averaged long at 44.42. Liquidated at 44.25. Loss on the trade of $34 per 100 shares (2 mentions) plus commissions.
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Encyclopedia of Chart Patterns. A must have for chart aficionados! |
The opinions and commentaries by Mr. De Vito are not a recommendation to buy or sell, but rather
a charting guideline, based on his own knowledge and experience, regarding the stocks he is following or
that are brought to him by others. Mr. De Vito does not presently offer a track record of his trading experiences.
No inference of success and/or failure should be assumed. The
information enclosed above, regarding his background, length of trading, and experience, is correct
but is not meant to suggest, state, or infer any future success in trading, based on his opinions. The information herewith included should only be used by investors who are aware of the risk inherent in securities trading. Mr. De Vito accepts no liability whatsoever for any loss arising from any use of the information and/or comments he supplies. |
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