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Issue #217 
March 13, 2011 | Newsletter
The newsletter with chart analysis for stocks and stock indexes |
Stock Indexes Analysis/Evaluation
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| Indexes Showing Weakness, Probabibilities Shift Back to the Bears!
DOW Friday closing price - 12044
The DOW gave a sell signal on the daily closing chart this past week when the index closed below the lowest daily close in the past 6 weeks at 12058. The sell signal was confirmed with a second close in a row below that level on Friday.
On a positive note, the DOW did close on Thursday at the 50-day MA, which was at 11985 that day, and with the green close on Friday, it can also be said that line might have been retested successfully. Nonetheless that will not be confirmed as successful unless the index closes on Monday again above 11984.
On a weekly closing basis, resistance is minor at 12169 and decent at 12391. On a daily closing basis, resistance is very minor at 12058, minor at 12214, decent at 12258, minor at 12273 and decent to strong at minor at 12391. On a weekly closing basis, support is very minor at 11823 and at 11743. Decent support is found between 11098 and 11101. On a daily closing basis, support is minor to decent at 11984 and at 11823. Below that, minor support at 11731 and minor to decent at 11637.
The DOW has seen the volatility increase strongly as it has been somewhat dependant on oil prices, and oil prices have been fluctuating quite a bit based on news out of the Middle East. Volatility at this time favors the bears. By the same token, there are other factors that are also affecting the general market (not only oil prices) as inflation is rising all over the world and interest rates have crept up. In addition, economic reports have not continued to be better than expected, giving notice that further appreciation in price will be difficult to accomplish. As such, long term profit taking is starting to be seen.
Friday was not an indicative day in the market due to the catastrophe that occurred in Japan that morning. The initial reaction to the catastrophe was negative, but then the fact oil prices dropped from $105 to $100 a barrel on Friday, caused confusion among the traders causing most of them to postpone pre-determined plans and go to the sidelines to await further clarification of what it all means. The action was likely more a wait-and-see reaction than an indicative one. Much more will be known over the weekend, making Monday's action likely important.
The sell signal that was given on Thursday, when the DOW closed below 12058, was probably based on what the traders believe will be the outcome of the problems in the Middle East. The probabilities continue to favor the DOW being in a full blown correction and heading lower this coming week. The 12058 level of daily close support that was broken will be an important pivot point this week, at least on a closing basis. A daily close above that level any day this week will be considered a positive, possibly taking the index up to at least 12235/12270, if not up to test the recent high at 12391. By the same token, Thursday's close at 11984 (50-day MA) will be even more important as a close below that level will likely thrust the index down to the 100-day MA, currently at 11640. That objective fits in well with an important weekly low seen in January 2008, at 11634. As such, the action this coming week, most likely to be determined on Monday, suggests that a close above 12058 will bring in new buying while a close below 11984 will bring in new selling, as well as a strong round of profit taking from the long term bull traders.
The index closed 2 days in a row below 12058, in spite of Friday's rally, suggesting that from a chart point of view, further downside should be expected. The 11800 level continues to be the objective of the head & shoulders type formation on the 60-minute chart, which was not negated with Friday's rally. Nonetheless, a break of the 50-day MA, currently at 11990 as well as a close below Thursday's close at 11984, will likely ultimately thrust the index down to the 100-day MA, currently at 11640. That objective fits in well with an important low at 11634 seen on the weekly chart in January 2008.
As has been the case for most of last week, the price of oil will likely determine what is to happen to the DOW this week. The probabilities do favor the price of oil going up this week as it dropped down to $100 a barrel on Friday and overall it is not believed the price of oil will get much below that level, and certainly not likely to stay below that level for long. As such, with the price of oil at $100 and the DOW at 12041, it would be surmised that if the index and the price of oil continue to move in opposite direction, the probabilities favor the index dropping, rather than rallying, from here.
As far as economic reports are concerned, this coming week will be highlighted by the inflation reports (PPI and CPI) that come out on Wednesday and Thursday, respectively. With inflation coming in worse than expected in China and Europe, the probabilities favor the reports coming in with negative surprises. If that is the case, it would be one additional negative the bulls will have to cope with. The momentum has started to change and dips are no longer being bought aggressively and rallies are starting to experience new selling. As such, the probabilities favor the downside this coming week, with the bulls "needing" positive events happening in order to prevent further downside.
The keys are clearly defined this coming week, on a daily closing basis, with 12058 on the upside and 11984 on the downside. A close above or below those levels will likely generate further movement in that direction.
NASDAQ Friday closing price - 2715
The NASDAQ also gave a sell signal on the daily closing chart this past week when the index closed below the 2-week support at 2722. In addition, the index did close below the 50-day MA, which has held inviolate since September 7th of last year. The index also generated a bearish runaway gap on Thursday between 2737 and 2721 that in conjunction with the breakaway gap seen 3 weeks ago between 2823 and 2808, gives the chart a strong reason to believe that a major top is now in place.
The NASDAQ did come close to generating a more impressive sell signal on the weekly closing chart when the index got down on Friday near the last weekly low close of consequence at 2686 with a drop down to 2689. Nonetheless, the sell signal on the weekly chart did not occur and therefore the door is still slightly open for a rally if the problems besetting the market go away.
On a weekly closing basis, resistance is very minor at 2784 and decent at 2833. Above that no resistance is found until decent resistance between 2864 and 2887. On a daily closing basis, resistance is minor at 2722, minor again at 2765, and minor to decent at 2798. Above that level, there is decent resistance at 2833. On a weekly closing basis, support is minor to decent at 2686 and then nothing until decent support at 2518. On a daily closing basis, support is minor at 2701, decent at 2686, and minor again at 2652. Below that level, support is minor to decent at 2617, minor to decent again at 2495, and decent to strong between 2460 and 2468.
The NASDAQ has now given 3 different and distinctive sell signals on the daily chart with the breakaway/runaway gap formation, the close below the low daily close for the last 2 weeks at 2722, and the confirmed break of the 50-day MA. The only thing that has not yet been accomplished is a sell signal on the weekly closing chart, and the index came close to doing that on Friday when the index fell to 2689 (2686 weekly close support) but rallied due to the drop in oil prices seen.
The runaway gap, presently between 2737 and 2724, has to be a strong key to what the NASDAQ does this week, inasmuch as closure of the gap will likely bring in new buying. If that is followed up with a daily close above the 50-day MA, now at 2745, most of the negatives seen recently will be negated and a rally attempting to close the breakaway gap at 2823 would then likely become the objective.
By the same token, if the NASDAQ is unable to close the runaway gap and goes below Friday's low at 2689, the selling and long term profit taking will likely occur in a big way, likely causing the index to head down to the psychological support at 2500.
The NASDAQ was the leader to the upside for most of the last 30 months, and it again seems to be the leader to the downside as it is the one index that has very important support at 2686, which is very close by to Friday's close. As such, this is the index to watch carefully as it will be the best indicator of what the traders are likely to do for at least the next couple of weeks, if not longer,
SPX Friday closing price - 1304
The SPX also gave a sell signal on the daily closing chart, having closed below the low daily close of the last 2 weeks at 1306. Unlike the DOW, the SPX did close below the 50-day MA on Thursday, currently at 1304, and was only able to close on the line on Friday, suggesting that any red close on Monday will cause the index to move further south.
On a positive note, the SPX was able to close above the psychological support at 1300 and leave the door open for a rally this coming week if the fundamental problems being seen recently get resolved.
On a weekly closing basis, resistance is very minor at 1321 and decent at 1343. On a daily closing basis, resistance is minor at 1306 and at 1321. Above that level, there is minor to decent resistance at at 1330 and decent at 1343. On a weekly closing basis, support is minor 1276, minor again at 1236 and decent at the 200-week MA, currently at 1190. Below that level there is no support until the 50-week MA is reached, currently at 1121. On a daily closing basis, support is minor at 1295 and decent at 1267. Below that, there is minor support at 1255, minor again at 1235, very minor at 1223 and decent to perhaps strong between 1178 and 1184.
The probabilities that the SPX has found a major top at the Fibonacci 75% retracement level at 1343 (weekly close) continues to increase as time goes by. Nonetheless, no other negative signal of consequence, regarding the long term trend, has been given yet. A close below 1276 is required at this time to give a sell signal on the weekly closing chart.
The SPX had a big trading range week with 1327 and 1292 (35 points) being the high and the low. The index did close in the bottom half of the trading range, suggesting that further downside will be seen this coming week. If the 1292 low gets broken, a drop down to 1270 could occur. Having had a 35 points trading range week last week, would mean that 1305 and 1270 could be the high and low for this coming week. By the same token, the 1304/1305 level has to be considered a pivot point for the week and if the index is able to establish itself above that line, the objective would be 1324. In that scenario, you could see a trading range of 1289 to 1324.
It does need to be mentioned that the SPX shows decent and likely important intra-week support at 1270 and again at 1256 from important intra-week lows seen in January and March 2008. Should the index get below 1256, the probabilities of the index being in a full blown 10% correction with 1200 as the objective will increase dramatically.
The probabilities favor the downside this coming week as the problems in the Middle East are not only likely to continue but get worse. With the market pivoting on oil prices and oil prices as of Friday's close being at what is now considered to be a likely support level at $100, it seems unlikely that oil prices will drop, making it unlikely the indexes will rally.
In addition, the important economic reports due out this coming week (inflation numbers - PPI and CPI) are more likely to be worse-than-expected than better-than-expected. Since they do not come out until Wednesday and Thursday, it is likely the traders will also be expecting worse numbers and will not be aggressive buyers in the face of that, even if oil prices do not rally.
All of the indexes gave sell signals on the daily chart this past week, as well as confirmations of the sell signals given on Friday, meaning that only if they are negated will the traders get back on the buy side.
In addition, the indexes closed in the lower half of last week's trading range, suggesting that the first course of action on Monday will be downward.
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Stock Analysis/Evaluation
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CHART Outlooks
Every day there seem to be more reasons for thinking that a short-term top has been built and that at least a decent to strong correction will happen. The indexes have dropped only 4-5% in value over the past couple of weeks and a decent correction is normally 10% or more, which means that further downside is likely to be seen at this point.
The indexes did break down below some important supports this past week and the probabilities have shifted toward further weakness being seen this coming week.
As such, there are 2 sell mentions this week in stocks whose charts offer good probabilities of a move down in conjunction with the indexes. Nonetheless, there is one buy mention given this week in a stock that is generally tied in with oil prices and is likely to rally based on that and not on the overall market conditions.
PURCHASES
VLO - Friday closing price - 27.98
VLO is an oil refinery that took a major tumble in price from Nov07 to Mch08 from a high of 78.66 to a low of 13.94. The stock then got into a long base building process between a low of 15.29 and a high of 21.49 that took 22 months to construct before breaking out in December of last year. In Jan09, the stock established a post-collapse high of 26.20 which was not broken until the last week in January of this year. Nonetheless, that high was broken 6 weeks ago and the stock is now seeing increased buying that suggests the stock is now into a strong up-trend. Since much of this has been caused by the increase of oil prices, and that is supposed to continue, the probabilities are high the stock will continue to move higher.
VLO has always been one of the giants in the oil refinery industry and it was surprising to see the company go down to such lows in price. Nonetheless, with the strong 2-year base building process having been accomplished and oil prices on the rise, the possibilities of the stock getting back to at least the $40 level are real.
On a weekly closing basis, resistance is minor to perhaps decent at 29.72 and then nothing until minor resistance is found at 32.95. Above that level, there is minor resistance at 35.85 and minor to decent at 38.88. On a daily closing basis, resistance is minor to decent between 28.56 and 28.98 and decent at 30.29. On a weekly closing basis, support is minor 24.59 and again at 24.13. On a daily closing basis, support is minor between 26.80 and 26.98 and decent at 26.32.
VLO closed right above the 50-day MA, currently at 26.25 (closed at 26.32), on Thursday and saw a bounce of consequence on Friday generating a rally of over $2.50 from low to high (25.60 to 28.13). The most impressive thing is that the stock, with the 26.32 close, had generated a sell signal on the daily closing chart but with the strong buying seen on Friday that sell signal was totally negated, all in a matter of less than 24 hours. Such action suggests the stock is ready to resume the strong weekly uptrend.
As far as resistance is concerned, VLO does show resistance on the daily closing chart at 28.98 and at 30.29, which also suggests the psychological resistance at $30 is in effect. Nonetheless, the weekly chart shows no previous resistance of consequence at that level. The next resistance level found on the weekly chart is the 200-week MA, which is currently up at 33.00. Above that level there is some minor to decent resistance on the weekly closing chart at 35.87. Nonetheless, since the stock dropped so precipitously from 2007 to 2009, no resistance levels of consequence were built, giving the stock plenty of room to the upside to rally before any resistance of consequence can be expected.
Due to the fact that a sell signal was given on Thursday on the daily closing chart, there are good possibilities the stock will show a bit of weakness again before going substantially higher. A drop back down to somewhere between 26.30 and 26.52 might be seen. Such a drop should be aggressively bought due to the probability number being high and the risk/reward ratio excellent.
Purchases of VLO between 26.31 and 26.52 and using a stop loss at 25.50 and having a minimum objective of 33.00, will offer a 6-1 or better risk/reward ratio.
My rating on the trade is a 4.25 (on a scale of 1-5 with 5 being the strongest).
SALES
MMM Friday Closing Price - 91.61
MMM made a new 41-month high this past week at 94.16 but was unable to keep the momentum going and ended up giving a reversal signal when the stock went below the previous week's low and closed in the red. With no previous resistance until the all-time high at 97.00 is reached, getting a reversal signal at this time is likely an important sign that further upside will not be occurring.
MMM has traded consistently between $70 and $90 for the past 10 years, with 2 exceptions which were in 2007 (during the last bull market) when the stock got up to 97.00 and in 2008 (during the last recession) when the stock got all the way down 40.87. With the probabilities increasing that the indexes have found at least a temporary high and the stock trading just $3-4 dollars from its all-time high, the likelihood and risk/reward ratio of shorting the stock are good.
On a weekly closing basis, resistance is decent at 92.96 and strong at 95.85. On a daily closing basis, resistance is minor at 92.23, decent at 92.96 and strong at 93.75. On a weekly closing basis, support is minor to decent at 90.25, minor at 87.44, and minor to decent at 85.45.Below that level, there is minor to decent support at 84.32, decent at 80./66 and strong at 76.10. On a daily closing basis, support is decent at 90.01/90.03, minor to decent between 87.44 and 87.44 and 87.90, and decent to strong at 85.45.
MMM has begun to show definite signs that the stock may have reached a temporary top at 94.16, starting with increased volatility over the past 3 weeks, as well as the fact the stock gapped down on Thursday after reaching the 40-month high at 94.16 where no previous resistance between that level and the all-time high at 97.00 is found.
As far as support is concerned, the $90 level has to be considered important support as well as a major pivot point. The stock has dropped slightly below the $90 level during the past 3 weeks with drops down to 89.27 and 89.71 and has bounced off of that level each time. On a daily closing basis, the stock now shows a double bottom low at 90.01 and 90.03 that is going to be difficult to break.
With MMM still showing a strong mid-term uptrend, the gap seen on Wednesday between 92.58 and 92.32 should be closed as it was not a gap that was based on fundamental news. In addition, the stock did bounce up strongly on Friday to close near the highs of the day after reaching the 89.71 low. As such, the probabilities are high that further upside will be seen early this week with closure of the gap as the main objective. On the daily closing chart, there is decent resistance at 92.96 (93.65 on an intra-week basis) and with the gap being at 92.58, it is likely that when the gap is closed, the 92.96 level will be seen.
It is possible to say that a Head & Shoulders formation may be forming as the left shoulder could be the 93.65 high seen February 22nd, the head could be the 94.16 high seen March 8th, and the right shoulder could be whatever high is seen this week, if the stock does not get above 94.16. The necklines are clearly established at 90.01 and 90.03. Should the H&S get established, a close below 90.01 would given an objective of a drop down to at least 85.84.
Below $90, MMM does show minor support at 87.90 (100-day MA) and between 87.20 and 87.25 (lows seen repeatedly in the last 2 weeks of January. Nonetheless, the stronger support is not found until the 200-day MA, currently at 85.45, is reached. With both that support coupled with the objective of the possible H&S formation being almost the same, it can be said that is the main objective of the short trade.
Sales of MMM between 92.57 and 93.65 and using a stop loss at 94.26 and having an objective of 85.45 will offer at least a 4-1 risk/reward ratio.
My rating on the trade is a 3.5 (on a scale of 1-5 with 5 being the highest).
JPM Friday closing price - 45.74
JPM has had a long history, dating as far back as 1998, of trading between $40 and $50, based on a weekly close. The stock has been as high as 67.17 and as low as 14.96 during the past 13 years, but at least 40-50% of the time has traded between $40 and $50. More importantly, though, since January 2007, the highest weekly close has been 48.66.
Three weeks ago, JPM generated a weekly close at 48.00 (48.35 intra-week) but since then has been unable to even rally back intra-week to the $48 level. With the indexes likely to be in the middle of a corrective phase and the stock showing an inability to rally above what has been considered a major resistance level for the past 4 years, the probabilities of the stock heading back to the $40 level have increased.
On a weekly closing basis, there is decent to strong resistance between 48.00 and 48.66. On a daily closing basis, resistance is decent between 46.55 and 46.69 and strong between 47.81 and 48.00. On a weekly closing basis, support is minor at 44.44 and minor again at 40.96. Below that level, support is decent between 39.67 and 40.28 ($40 demilitarized zone). Strong support is found between 35.83 and 37.49. On a daily closing basis, support decent between 45.19 and 45.21, minor at 44.54, at 43.71 and at 43.40 and then nothing of consequence until 40.27 is reached.
JPM, same as the indexes, has been on an uptrend since December. Nonetheless, 3 weeks ago when the stock got up to 48.35, the selling increased vividly causing the stock to falter in its uptrend and start to give some failure signals. The stock gapped down between 47.55 and 47.27 on February 22nd and was not able to find any support of consequence until the $45 level was reached. Since then, the stock has re-tested the gap area twice with rallies up to 47.18 and 47.10 but has failed to close the gap, strongly suggesting that further downside will occur unless the indexes stage a strong rally.
JPM did get down to the 50-day MA, currently at 45.25, last week and was able to hold itself above it, but was not able to generate enough of a rally from that level to have confidence the line will hold up. Nonetheless, the stock did close near the highs of the day on Friday and it is likely that Friday's high as 45.84 will be broken and a rally up to somewhere between 46.00 and 46.33, where some minor resistance is found, will occur.
A break below the 50-day MA is likely to thrust the stock down at least to the 100-day MA, currently at 42.30, where some buying could be seen. Nonetheless, the probabilities of the stock getting down to the 200-day MA, currently at 42.60 or even down to the 200-week MA, currently at 40.00 will be good if the 50-day MA is broken.
Sales of JPM between 46.31 and up to 47.46 and using a stop loss at 48.12 and having an objective of 40.00 will offer at least a 3.5-1 risk/reward ratio.
My rating on the trade is a 3.75 (on a scale of 1-5 with 5 being the highest).
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Updates
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| Updates on Held Stocks |
Closed Trades, Open Positions and Stop Loss Changes |
| DCTH generated a second green weekly close this past week increasing the probabilities that the low for the recent drop has been found. On the daily chart, the stock also now shows 2 successful retests (6.32 and 6.42) of the 6.18 daily close low made 2 weeks ago. If the stock can generate a close above the most recent daily closing high at 6.98, the stock should then have a retest of the gap at 8.18 as the objective. Resistance, on both a daily and weekly closing basis will be found at 7.25. Recent low at 6.25 should not be broken. If broken, new selling will likely appear. FCEL had a positive earnings report on Thursday causing a gap to occur (between 1.81 and 1.85) that could end up being a bullish breakaway gap. The stock successfully tested the breakout above the 200-day MA 2 weeks ago when it dropped down to 1.55 and now seems to be trying to establish a new uptrend as a bottom to the 3-year downtrend has now been fully established. On Friday, the stock got up to the 2-month high at 2.03 and if able to get above that level and close above 2.00, a break of decent resistance will occur, likely causing the recent high at 2.41 to be tested and broken. If that happens, the first objective would be a rally up to the 100-week MA, currently at 2.60, to occur. Support on a daily closing basis should now be strong at 1.75. SVNT treaded water all this past week straddling the $10 level while testing the bottom of the $10 demilitarized zone with a drop down to 9.71 on Thursday. The stock ended up having a non-event week but maintained the recent breakout intact. If the stock can once again start trading above the $10 level, new buying should come in and the 100-day MA, currently at 11.50, would likely be the objective. Support, on a daily closing basis is decent and somewhat important at 9.68. A close below that level would likely bring in new selling. ELON was unable to close above the 200-day MA, currently at 8.60, this week though it tried repeatedly. The failure brought in new selling and the gap down between 8.19 and 8.08 was once again tested with a drop down to 8.21. Nonetheless, the gap was not closed and that remains a bullish sign. Intra-week support remains strong at 7.71 but if the gap is closed that level will likely be tested with a drop down to at least 7.90. If the week's high at 8.82 is taken out, strong buying is likely to occur. STP broke down from the recent short-term uptrend that had been established. The stock broke below the 200-day MA at 9.10 and selling of consequence was seen taking the stock down to the 7.97. The stock closed near the lows of the week suggesting that further downside will be seen this coming week. Nonetheless, the stock continues to be in a longer term base-building pattern that has not been negated with this recent drop. The chart shows the possibility that a bullish inverted head and shoulders formation is being built with the left should being at 7.53, the head being at 7.10, and the right shoulder in the process of being built. The necklines are at 11.41 and 10.83. As stated above, follow through to the downside will likely be seen this week but support between 7.53 and 7.67 will likely stop any further downside. By the same token, there is decent support, both psychological and from previous lows at 8.00 and if the stock does not go below Friday's low at 7.97, a rally above Friday's high of 8.45 would likely occur, giving notice that the stock has found the low of this move and that the right shoulder of the H&S formation may have been built. Ultimately, at these levels the risk is very small of further downside. The upside objective, if the neckline is broken up at 10.83, would be a rally up to 15.50, so the risk/reward ratio at these levels is excellent. A rally back up to at least the 9.10 level is highly likely if the stock holds above 7.53. IR made a new 3-year high 5 weeks ago but failed to follow through, causing the stock to drop below support at 45.27 and giving a sell signal. Nonetheless, the stock found support at the 20-week MA, at the time at 44.00 (dropped down to 43.97) and has now found enough buying to get back up to the previous resistance level prior to the new 3-year high, between 46.84 and 47.81. There is a small possibility that Friday's high at 46.78 may have fulfilled the need of the retest, but having closed near the highs of the week suggest the stock will go above last week's high and somewhere into the 46.84 to 47.81 upside objective. The status of the index market as well as the clear failure-to-follow-though signal given 4 weeks ago, suggests that the stock will be heading substantially lower if the stock fails to rally above 47.81 and then closes below 44.51. LVS closed below the 200-week MA for the first time since October of last year, suggesting that the weekly uptrend the stock had been in for the previous 2 years is over. Nonetheless, the stock did get down close to the 200-day MA, currently 38.00 with a drop down to 38.20 and rallied on Friday and therefore it is possible that the stock may find a temporary halt to the most recent short-term downtrend being seen since the SEC put the company under investigation. The $40 level is likely to become a pivot point for the stock at this time. Rallies up to the 200-week MA, currently at 42.60 could be seen. Support will be found between 38.00 (200-day MA) and 37.71 (weekly close support of minor to decent strength). If the stock does close below 37.71 on a weekly closing basis, drops down to the $30 level will become possible and even probable. For the time being, expect the stock to trade between 42.60 and 37.70. CIT continues to show a bearish inverted flag formation with the flag being the daily close trading range between 42.69 and 44.01. A close below 42.69 would give an objective of 37.80. The stock also continues to close below the 100-day MA, currently at 44.20, and as long as it stays below that line, further downside is likely to be seen. The 200-day MA, currently at 41.00, would be the first objective if the stock gets below the most recent intra-week low at 42.12. Probabilities favor the downside. Nonetheless, any daily "close" above 44.00, by at least 10 points, would be considered a positive. For those following the stock: AMZN gave a sell signal on the weekly closing chart on Friday closing below the lowest weekly close support since mid November at 171.14. Minor weekly close support is found at 164.82 before encountering the strong support at $150. On the daily chart, though, the stock did hold the most recent low at 163.90 with a drop down to 164.12 and then the stock turned around to close near the highs of the day suggesting that short-term follow through to the upside will be seen at the beginning of the week. Minor resistance intra-week is found at 169.75 but the resistance is stronger on a daily closing basis at 169.74 as that was the previous daily low close of consequence that was broken. Low closes, though, are never strong resistance levels. Intra-week, the stock could get up as high as 173.20 before encountering intra-week resistance of consequence. A break below 163.90 will likely thrust the stock down to the $157-$160 level. Probabilities favor a rally at the beginning of the week but no close above 169.74, followed by more weakness.
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1) ELON - Averaged long at 8.71 (2 mentions). No stop loss at present. Stock closed on friday at 8.21.
2) DCTH - Averaged long at 7.50 (2 mentions). No stop loss at present. Stock closed on Friday at 6.66.
3) FCEL - Purchased at 1.77. Averaged long at 1.50 (2 mentions). Stop loss now at 1.63. Stock closed on Friday at 1.95.
4) SVNT - Purchased at 9.51. Averaged long at 9.505 (2 mentions. No stop loss at present. Stock closed on Friday at 9.87.
5) STP - Purchased at 10.03. No stop loss at present.Stock closed on Friday at 8.04.
6) CIT - Shorted at 43.68 and again at 44.01. Averaged short at 43.845. Stop loss at 44.42. Stock closed on Friday at 43.23.
7) IR - Averaged short at 44.88 (2 mentions). No stop loss at present. Stock closed on Friday at 46.53.
8) LVS - Shorted at 43.45. Stop loss now at 42.90. Stock closed on Friday at 40.05.
9) BHI - Purchased at 70.07, at 69.57, and at 68.73. Averaged long at 69.27. Liquidated at 67.86. Loss on the trade of $211.50 (1.5 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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