Issue #310 ![]() Jan 13, 2013 | Newsletter
The newsletter with chart analysis for stocks and stock indexes |
Stock Indexes Analysis/Evaluation
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Traders Await Earnings Reports!
DOW Friday closing price - 13488
The DOW generated follow through to the previous week's 564 point rally and close on the highs of the week by closing in the green on Friday. Nonetheless, the follow through was muted as the index was only able to rally an additional 49 points above the previous week's high, suggesting that the traders are still wary of the fundamentals and need positive earnings reports confirmations to take the index substantially higher.
The DOW got up near a congestion/resistance area between 13500 and 13661 that was successful in stopping the index for a period of 5 weeks when it last traded there in September/October. With the traders likely needing additional fundamental help to take the index above the 5-year high at 13661, the probabilities suggest that for the next 1-3 weeks the index will likely tread water in a 300 point trading range between 13367 and 13661.
On a weekly closing basis, resistance is decent to strong between 13593/13610. Above that level, there is minor resistance at 13625, minor to decent at 13907 and major at 14093. On a daily closing basis, resistance is decent at 13557 and strong at 13610. On a weekly closing basis, support is minor at between 13232 and 13275. Below that, support is minor at 12849 and decent at 12588. On a daily closing basis, support is minor to decent at 13326/13328, minor at 13077 and decent to strong at 12936.
The DOW broke out of a bullish flag formation on Thursday but did not generate the kind of rally on Friday that was required, suggesting that the bull flag will lose its strength and convert into something else this coming week. The bullish flag does not have strong fundamental support to continue as technical traders need more information before buying aggressively. By the same token, the bullish flag has not yet been negated, meaning that if the index rallies strongly on Monday (unlikely), the bull flag will continue. A drop on Monday below Friday's low at 13439 would negate the flag.
To the upside, the DOW shows very minor intra-week resistance between 13502 and 13522 and then nothing until decent resistance is found at 13588. Strong resistance is found at the double top at 13653/13661. It should be noted, though, that the resistance at 13588 is important inasmuch as a break above that level will likely take the index up to the double top at 13653/13661, thus creating a triple top and a high likelihood of it being broken. As such, the bears are likely to focus their efforts in not allowing the 13588 level to break.
To the downside, the DOW shows minor to decent support at 13367 and decent support at 13293/13296. If the flag formation is negated on Monday or Tuesday, the probabilities of the index dropping down to 13367 will be high. In fact, the probabilities are high already that the index will be trading between 13367 and 13588 until new fundamental news comes out (likely important earnings reports).
The failure of the DOW to generate a strong move up on Friday after the breakout of the flag on Thursday occurred, suggests that the index maintains a "slight" upward bias but that the momentum seen the previous week was overdone and not supported strongly by the fundamental news. Simply stated, the momentum to the upside has ebbed and is at the mercy of whatever "new" news comes out.
Though no negative signals have been given yet, the DOW is showing some signs of exhaustion as the volume has not picked up at all during this last rally. A lack of a spike in volume on a 600 point move over a 2-day period, and the week thereafter, likely means it was a rally of opportunity and not a rally of essence. As such, the traders are likely to wait for the earnings reports to get more essence to their trading.
NASDAQ Friday closing price - 3125
The NASDAQ followed through to the upside after the close on the previous week's highs but the follow through still fell short of breaking the decent intra-week resistance at 3134, suggesting that nothing, other than keeping the index moving un-indicatively higher, was accomplished by the bulls this past week. In addition, the follow through seen was small having rallied only 9 points above the previous week's high, also suggesting that the buying interest is waning. With the index closing at 3125 and only 9 points above the previous week's high, it means the news this week has to be "better" than last week's in order for the 3134 resistance level to be broken.
The NASDAQ also broke out of a bullish flag formation on Thursday but failed to generate "any" follow through on Friday having had an inside day (lower highs and higher lows than Thursday). The lack of follow through to the flag formation, in addition to the fact that a decent resistance level at 3134 is still close-by above, suggests the flag will be negated this coming week likely putting the upside momentum at risk of turning down.
On a weekly closing basis, there is very minor resistance at 3136 and major resistance at 3183. On a daily closing basis, resistance is minor at 3136, minor to decent at 3149 and major at 3183. On a weekly closing basis, support is minor at 3000 and decent at 2960. On a daily closing basis, support is minor to decent at 3091 and at 3044/3048, minor to perhaps decent at 2988 and decent at 2960.
The bears had an opportunity to turn things around when the NASDAQ made a half-hearted attempt on Tuesday to close the bullish gap (seen after the Fiscal Cliff was resolved) between 3021 and 3083. The bears failed to close the gap and the index rallied above the previous week's high, as well as above the top of the flag formation, suggesting that the index was heading substantially higher, likely up above 3134 and up to test the 13-year high at 3196. Nonetheless, the "run to the upside" ran into a small snag on Friday when AAPL, the #1 stock in the index, turned red and ended up closing lower than the previous week's close, likely causing the index to fail to follow through on the positive chart action seen during the week.
To the upside, the NASDAQ shows decent resistance level at 3134 that is considered the left shoulder of a possible bearish Head & Shoulders formation. Above 3134 there is no resistance until 3171 which is the same kind of resistance that is seen in the DOW at 13588 and that should not get broken as a break would likely mean the double top at 3195/3196 would be seen, creating a triple top which would likely get broken. Above 3196 there is no close by resistance.
To the downside, the NASDAQ shows minor support at Friday's low at 3114 and minor to perhaps decent support between 3076 and 3083. Below 3076 there is minor to decent support at 3040 and then none until 3000 is reached. A break below 3114 would negate the bullish flag formation and possibly set in motion the beginning of a downtrend.
It should be also noted that the index is presently showing a bearish breakaway/runaway gap formation with the breakaway gap being between 3178 and 3176 and the runaway gap originally between 3125 and 3130. Having gotten to 3127 on Thursday and 3126 on Friday, the index did penetrate the runaway gap but did NOT close it. That could be indicative as it seems the traders are closely watching that formation and it could end up being a key to the trading this coming week.
Though the SPX continues to be the leading index it is evident the traders will keep their eyes on the NASDAQ, as well as the continued weakness in AAPL, because it is possible the index could be the the first one that gives an indication that the downside is going to start.
By the same token, closure of the gap at 3130, as well as a break above 3134, will likely generate a rally to close the breakaway gap at 3178 and if that happens, the probabilities of the index getting up to the 13-year high at 3196 will be high.
SPX Friday closing price - 1472
The SPX confirmed last week's break above the previous 5-year weekly closing high at 1465 with a second green close in a row above the level. By the same token, the 5-year intra-week high at 1475, seen in September, has not yet been broken leaving questions as to the validity of the breakout.
The SPX will be in the spotlight this coming week with earnings reports due out on most of the big financial firms in the index, such GS, BAC, C, and MS. WFC reported earnings on Friday and though the earnings beat expectations by a few cents, the stock closed in the red. Should that be the trend this coming week with the other reports it will be difficult to keep the uptrend intact, especially since a new 5-year intra-week high above 1475 has not yet been seen.
On a weekly closing basis, minor resistance is found at 1504 and at 1536, decent resistance at 1552 and major resistance at 1561. On a daily closing basis, no resistance above is found for the past 12 months. On a weekly closing basis, support is minor at 1440 and decent to perhaps strong at 1402. On a daily closing basis, minor support is found at 1457 and again at 1433. Decent support is found at 1428 and strong support is at 1402.
The SPX broke out of a bullish flag formation this past week when the index got above 1467 on Thursday. Nonetheless, the breakout did not generate the kind of technical buying that is required of such a breakout as the index mostly "treaded water" on Friday without extending the spike-type flagpole that should have been seen. With no fundamental news due out on Monday, the probabilities do not favor further upside of consequence on that day, which in turn will strongly weaken the formation likely turning it into something else.
To the upside, the 1475 level in the SPX continues to be considered important intra-week resistance, especially since the index made a new 5-year weekly closing high 6 trading days ago but has not been successful in getting above that resistance. The index did close on the highs of the day/week on Friday, suggesting that on Monday the 1475 level is likely to be broken and if that happens, the index could rally all the way up to 1523 as no resistance is shown in between.
To the downside, the SPX now shows indicative support at the 1450/1451 level which was the low this past week as well as the bottom of the flag. Should the index get below Friday's low at 1467, the breakout of the flag will be negated and a drop down to the 1450/1451 will likely ensue. If that support is broken, drops down to 1425/1430 will likely be seen. A break below 1425 would likely take the index down to the 1400 level.
The SPX will be the index getting the important earnings reports this coming week and therefore should be considered the index to watch. It should be mentioned that during the past couple of years earnings reports in the index have generally been better than expected but have normally generated selling rather than buying. It is unlikely that any of the financial institutions will report blow out earnings as the industry has changed in that respect, and therefore the probabilities do not favor further upside of consequence this coming week.
It is possible though, that the index will break above 1475 as the index only needs a small "nudge" upward to break that level. Nonetheless, if no follow through is seen "immediately" after the break, it is likely the traders will turn negative and short the index. The earnings reports in the index are likely to be very important this week as stalwarts of the market, such as AAPL, AMZN, and GOOG, are not expected to show good earnings, therefore likely leaving the SPX as the key to what the market does.
The probabilities favor further upside, up and above 1475, but a failure thereafter causing disappointment which would then in turn either be confirmed or negated the following week when the important tech earnings reports come out.
The news of the past few weeks is now history as the traders turn their attention to earnings reports. During the next 2 weeks 70% of the important earnings reports will come out and the anticipation is that this earnings quarter will be slow and generally worse than expected. By the same token, the market has been very resilient believing that all problems will be resolved at the last hour and that the U.S. economy will overcome all.
On a negative note, though, it is difficult to believe that with the outlook for the year being generally sluggish that the market would be able to make new all-time highs. In addition, the action this past week after such a strong spike up the previous week does suggest that the market is "tired" and that some kind of strong correction is likely to be seen. This type of correction fits in well with the seasonal tendency to have the market begin a 2-3 month correction sometime in the first 6 weeks of the year.
By the same token, it is unlikely that the market is ready to begin a correction until after the bulk of the important earnings reports come out. As such, the probabilities favor the traders keeping a slight upward bias for at least the next 7-10 days. As such this coming week is not likely to see much in the way of aggressive selling. What is likely to be seen is more of the same as seen this past week.
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Stock Analysis/Evaluation
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CHART Outlooks
The indexes failed to generate strong follow through to the previous week's strong rally as the traders fear earnings reports will show the economy is sluggish. Without positive earnings the seasonal correction (normally seen starting as soon as the important economic reports come out) will likely take hold and cause the indexes to fall. The index market is showing signs of exhaustion as the frenzied buying seen the previous week (after the Fiscal Cliff was averted) slowed down to a trickle.
Though it is unlikely the market will head lower before the bulk of the important earnings report come out, individual stocks at important resistance levels will likely start showing selling this coming week. As such, mentions will be mostly sales on stocks that are close to levels of important resistance that are unlikely to be broken without further upside of consequence in the general market.
PURCHASES
SIRI Friday Closing Price - 3.10
SIRI broke above the 200-week MA back in December 2010 after 4 years of trading below the line. The stock tested the line successfully in October 2011 and since then has been on a well-defined long-term uptrend. In March of this past year the stock had problems with the 2.40/2.50 level that had been a decent pivot point support/resistance since Jan08 but once the stock got above that level the uptrend resumed and the stock now finds itself running to the upside with no resistance of consequence in sight until the 3.90 level is reached.
SIRI saw some selling come in 11 weeks ago at the 3.00 psychological resistance level and traded back down to 2.54 while trading most of the time between 2.65 and 3.00. Nonetheless, a week ago Friday and possibly with the help of the index rally the stock broke above the 3.00 level is a convincing way suggesting further upside will be seen now.
SIRI shows no resistance of consequence until 3.38 is reached but even then that resistance is considered minor to perhaps decent at best. The stronger resistance is found at the $4 demilitarized zone (3.70-4.30) from 2 major highs seen in Jan/Apr04, congestion trading during 9 months seen in 2006/2007 as well as from 2 spike highs seen in Dec2006 at 3.94 and at 3.89 seen on Mar07. The probabilities of the stock getting up to that level are high are now high.
SIRI gapped up a week ago Wednesday after the Fiscal Cliff issue got resolved and has shown continuation buying to the upside for the past 8 days without any kind of a retest of the now important 3.00 support level. It is likely that at some point, probably on a day the indexes show some weakness, that the stock will pull back to 3.00 before trying to tackle the resistance levels above. Traders will not only likely want to test the breakout above 3.00 but the now important gap between 2.92 and 2.95.
SIRI did close near the highs of the day/week on Friday and further upside is likely to be seen this coming week, suggesting that it may not be until the following week that a drop back down to the 3.00 will be seen. Nonetheless, this buy mention will remain in place until the stock gets above the resistance at 3.38, at which time the chart will need to be re-evaluated.
Purchases of SIRI between 3.01 and 3.03 and using a 2.83 stop loss and having a 4.00 objective will offer a 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).
SALES
OPEN Friday Closing Price - 53.53
OPEN has been on a strong short-term uptrend for the past 6 weeks with higher lows and a green close every week. The rally started at 41.68 and has now reached 55.30 which means the stock has rallied over 33% in a short period of time. The most important thing to consider is that the stock has generated this rally without any catalytic news, likely meaning that it has been based on momentum as well as it stop loss short-covering.
OPEN does not show any previous intra-week high resistance at all until the $65-$70 level is reached (67.61 on a weekly closing basis), meaning that further upside of consequence could be seen if the overall market continues higher. Nonetheless, the stock is now strongly overbought, reached the 100 week MA (currently at 55.85) with a rally this past week to 55.30, and has begun to slowdown as the stock was only able to generate an additional 43 point higher close than the previous week. In addition, the volume the last 3 weeks has been extremely low also likely meaning that buying interest has begun to wane.
OPEN did close slightly in the upper half of the week's trading range suggesting that there is a possibility that the stock will get above last week's high at 55.30 and get up to the 100-week MA at 55.85. Nonetheless, the bulls are in need of a correction so that some kind of a support level nearby can be built as the only support level found at this time is the low seen 7 weeks ago at 41.68. Drops back down to "at least" the psychological support level at $50 are highly likely to be seen soon. Further support on the intra-week daily chart is found at 47.84 but it should be mentioned that there are 3 intra-week lows in that area (47.84, 47.93, and 47.95) which is considered a multi level support that is likely to be broken at some point. The stronger support is found down at 43.57 which is also where the 200-day MA is currently located.
The probabilities favor the stock rallying this week up to the 100-week MA but likely generating a reversal week and starting a move back down to the $50 level. OPEN reports earnings on January 31st and that likely means that the bulls will be hesitant to buy aggressively at this time, especially with no close-by support having been built.
OPEN did close on the highs of the day on Friday and further upside is likely to be seen on Monday. The biggest question this week will be "what is the best entry point into the trade" as the stock does not show any previously built resistance close-by. The stop loss point is "general" in nature at 57.35 (using the $3 level below an important even resistance as the determinant), thus making the probability rating low. Stop loss likely to be changed within the next couple of days after action determines a clear level where selling is being seen.
Sales of OPEN between 54.35 and 55.85 and using a stop loss at 57.35 and having an objective of 43.57 will offer a 4-1 risk/reward ratio.
My rating on the trade is a 2.75 (on a scale of 1-5 with 5 being the highest).
CIT Friday Closing Price - 39.86
CIT made a new 10-week high the previous week breaking above a minor to decent resistance level at 38.96 and doing it in a spike-up fashion to close on the highs of the week at 40.14 suggesting strong follow through to the upside would be seen. Nonetheless, follow through was not seen this past week as the stock ended up having an inside week with a red weekly close, which in turn left many questions unanswered as to whether any further upside would be seen.
It does need to be mentioned that the $40 level in CIT has been an important pivot point/resistance level during the past 3 years as the stock has generated a total of 7 weekly closes between 39.60 and 40.60 during that period of time, both as support or as resistance (4 as support and 3 as resistance), depending on where the stock had been trading previously. With the stock having been trading below $40 for 90% of the time during the past 18 months, the probabilities favor the stock continuing to trade below the level rather than above.
CIT did generate a red close on Friday making the previous weeks' close at 40.14 into a successful retest of the area. Nonetheless, the stock still closed within the $40 demilitarized zone suggesting the red close can easily be negated this coming week if the important financial earnings reports are all positive and generate further upside momentum. By the same token, recent history (the last 2 years) has shown that "financial companies" have generally reacted negatively to earnings reports, even when better than expected. As such, probabilities do favor the stock failing here at $40.
Support in CIT is found at the low seen 2 weeks ago at 37.65 and slightly stronger support is found at 36.02. Below 36.02, decent to strong support is found at 32.29 and the strongest support is found at $30. It should be mentioned that the stock spiked up from 37.65 and if that level is seen again it is likely to break as a failure to follow through signal will be given on the spike. Such a failure signal would likely cause the 36.02 to break as well making the downside objective of the trade a drop down to the $32 or even the $30 level possible.
To the upside, CIT shows intra-week resistance at the previous week's high at 40.27. Nonetheless, that resistance is so close by that if anything positive occurs in the financial arena it will likely be broken taking the stock up to the next resistance level that starts at 41.11 and then gets strong between 41.94 and 42.94. It is unlikely at this time that the upper resistance area will be broken unless the SPX is heading toward the all-time high at 1576. On a weekly closing basis, though, resistance is decent between 40.60 and 41.34 which should not be broken even if the stock is able to get up to the 42.94 intra-week resistance.
It is evident that CIT is at an important pivot point that will likely be decided within the next 2 weeks after the financial earnings reports are all out. Nonetheless, the probabilities suggest that the stock will continue trading below $40 as it has done during the past 18 months.
Sales of CIT between 39.70 and 40.30 and using a stop loss at 41.21 and having an objective of 32.29 will offer a 7-1 risk/reward ratio. I do suggest the stop loss be mental at this time, or at least until the financial reports are out this coming week.
My rating on the trade is a 3 (on a scale of 1-5 with 5 being the highest).
VHC Friday Closing Price - 34.40
VHC has traded mostly in a $5 trading range between $30 and $35 since the last earnings report came out on November 8th. With the next earnings report not due out until February 8th, the probabilities of the stock continuing to trade in that trading range are high. The stock had a high of 34.92 this past week and did end up closing near the highs of the week suggesting that further upside will be seen with the $35 level as the upside objective. It is likely that selling will once again be evident once the stock gets above $35.
The long term trend in VHC is bullish but since the stock made the 41.93 all-time high in Jul12, the short-term trend is slightly bearish having generated 2 successful spike highs retests (37.65 and 36.60) over the past few months, each lower than the other. With the economy still facing some difficult problems over the next 2 months and the seasonal tendency to correct likely to kick in sometime in the next few weeks, the probability of the stock breaking the short-term downtrend at this time is low.
To the upside, VHC shows minor to decent resistance at 35.25 and then decent resistance at 36.60. To the downside, the stock shows minor to decent support between 28.83 and 29.26.
The next earnings report in VHC is not due out for 4 weeks and I see no reason that the traders will change their style of trading this stock for that period of time. As such, the probabilities are high that the stock will return back to the $30 one more time before anything else happens.
Sales of VHC between 35.20 and 35.70 and using a 36.70 stop loss and having a 29.70 objective will offer a 4-1 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 was able to generate a third green close in a row but the stock did not accomplish anything of consequence doing so. Nonetheless, the stock was able to continue the recent mini uptrend having broken above the previous week's high at 1.39 with a rally up to 1.46 this past week. The probabilities favor more of the same this coming week with 1.60-1.62 as the upside objective, to be reached either this coming week or the next. The 1.62 level (1.67 on an intra-week basis) is a big key to the future of the stock as that is where resistance of some consequence is found. Minor support is found at 1.28 and decent support at 1.16. FCEL had a second spike-up type weekly rally in which the high for the past 8 months at 1.18 was broken. In addition, the gap seen in June at 1.23, off of a negative earnings report, was closed suggesting that all the fundamental negatives seen during this period of time have now been erased. Nonetheless, the stock fell short of closing above the weekly closing high at 1.29 seen during the last spike up in June, suggesting that some retracement to this rally could be seen this week, likely to retest the level that is now minor support at 1.22, or even perhaps the breakout level at 1.11. The stock did close near the lows of the day on Friday, suggesting the first course of action on Monday will be to the downside with 1.22 as the first objective. Below 1.22 there is no support until 1.09/1.11 is reached, meaning that the bulls must keep the rally going or face a decent correction to the spike up rally seen. Intra-week resistance is decent between 1.36 and 1.39. A break above 1.39 would likely take the index up to at least 1.64 where an important breakaway gap to the downside between 1.64 and 1.70 is found. Further resistance is found at 1.79 and strong resistance is found at 1.95. This coming week is short-term important as the bulls have the bears "running for the hills" and a short squeeze is what is occurring. If the bulls let the bears "off the hook", the probabilities will favor the stock getting into a trading range between 1.09 and 1.39 until the next earnings report come out in the latter part of March. The bulls must get above the 1.39 level within the next 2 weeks at most, or such a scenario will become probable. ELON had a disappointing "inside" week after having generated a classic positive reversal week the previous week, as well as a close on the highs of the week suggesting further upside would occur. The stock closed on the lows of the week opening the door to the recent successful retest of the 2.10 low at 2.35 getting broken. By the same token, the bulls were successful in keeping the stock from closing below the recent weekly close support level at 2.45 (in spite of trading below that level on Wednesday) and that keeps the door open for a reversal this coming week. Resistance is once again at 2.67 and the bulls need to get the stock above that level ASAP or give the bears the "edge" back. Support is found at 2.40 and 2.35 and resistance at 2.67. Probabilities are about 50-50 this week on direction. FSLR had an uneventful inside week closing slightly in the upper half of the week's trading range suggesting that the bulls have an edge this week. On a negative note, the stock could be in the process of building a short-term bearish Head & Shoulders formation that if broken (a drop below 30.43) would offer a $28 objective. The stock traded sideways the last 3 days of the week between 31.45 and 32.66 giving no clue as to what to expect on Monday. Within the possible H&S formation, a rally up to 33.38 could be seen, as well as a drop down to 31.05 without damage being done to either direction. The bulls still have the edge as the trend is up but the inability of the bulls to generate anything of consequence the last 3 days of the week, as well as the inside week seen on the weekly chart, has shifted the probabilities slightly, giving the bulls only a "slight" edge. Stops should now be placed at 30.33. LEN generated a green weekly close keeping the recent uptrend intact. Nonetheless, the stock closed in the middle of the week's trading range suggesting that the earnings report that comes out on Tuesday morning will likely decide if the uptrend is to continue or whether the stock has found a top to this 14-month rally. The stock did close near the lows of the day on Friday and the first course of action for Monday will likely be to the downside with 40.00 as the likely objective. The stock still shows an open gap between 38.72 and 39.46 that is likely to decide what the stock will do after the earnings report. Closure of the gap will be considered a negative (possibly a strong negative) while a second gap after the earnings report, especially if the recent high at 42.00 is broken, a strong positive. Stop loss orders can now be considered at 42.10, though they should be mental as action immediately after an earnings report can be chaotic. I continue to believe that the $40 is a strong psychological resistance area that is unlikely to be broken at this time, unless the market in general is heading higher and the company reports much better than expected earnings. I will be staying short for the earnings report. NTGR had an non-indicative inside week but did generate a red close that made the previous week's close at 39.53 another successful retest of the strong weekly close resistance between 39.25 and 39.89. The stock did close near the lows of the week, suggesting the first course of action this coming week will be to the downside. Minor to decent intra-week support is found between 37.80 and 38.42. A break below 37.80 would likely take the stock down to the 35.89 area. Resistance continues to be decent at 39.71 and decent to strong at 40.28. Stock reports earnings on the 23rd of the month and the probabilities suggest further sideways trading between 37.80 and 39.70 for the next 2 weeks. Stop loss orders should be in place at 40.38. XOM followed through on the previous week's close on the highs of the week with another green close near the highs of the week on Friday. In addition, the stock generated a new 14-week high daily and weekly close on Friday above the previous high daily close at 89.56. Resistance is found at the spike high seen December 12th at 90.37, if broken the stock will likely see a rally up to the 92.40 level. As such, stop loss orders should be in place at 90.47. Probabilities favor the bulls but the $90 level is a decent resistance area that is not likely to be broken without some help from the indexes. As such, the bulls have an edge but it is not a substantial edge. A drop below Friday's low at 88.86 would take away the edge from the bulls and likely push the stock down to 87.29. Closure of the gap between 86.66 and 87.24, in conjunction with a close below the 200-day MA, currently at 86.80, would be a strong negative.
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1) ELON - Averaged long at 8.71 (2 mentions). No stop loss at present. Stock closed on Friday at 2.53.
2) PHM - Covered shorts at 18.94. Shorted at 18.17. Loss on the trade of $77 per 100 shares plus commissions.
3) FCEL - Averaged long at 1.34 (5 mentions). No stop loss at present. Stock closed on Friday at 1.25
4) BA - Covered shorts at 76.41. Averaged short at 76.28. Loss on the trade of $39 per 100 shares (3 mentions) plus commissions.
5) DCTH - Averaged long at 3.383 (3 mentions). No stop loss at present. Stock closed on Friday at 1.40.
6) BA - Purchased at 75.01. Liquidated at 73.89. Loss on the trade of $112 per 100 shares plus commissions.
7) FSLR - Purchased at 31.44. Averaged long at 27.17 (2 mentions). Stop loss now at 30.33. Stock closed on Friday at 32.01.
8) CIT - Covered shorts at 39.74. Averaged short at 38.39. Loss on the trade of $270 per 100 shares plus commissions.
9) NTGR - Shorted at 39.84. Stop loss at 40.52. Stock closed on Friday at 39.06.
10) XOM - Shorted at 89.56. Stop loss at 90.47. Stock closed on Friday at 89.61.
11) STX - Covered shorts at 31.23. Shorted at 31.72. Profit on the trade of $49 per 100 shares minus commissions.
12) NFLX - Purchased at 97.51. Liquidated at 97.46. Loss on the trade of $5 per 100 shares plus commissions.
13) NFLX - Purchased at 94.75. Liquidated at 99.73. Profit on the trade of $498 per 100 shares minus commissions.
Previous Newsletters
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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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