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Issue #384 
July 13, 2014 | Newsletter
The newsletter with chart analysis for stocks and stock indexes |
Stock Indexes Analysis/Evaluation
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| Sideways Action as Traders Await Earnings!
DOW Friday closing price - 16943
The DOW has continued to move higher over the past 6 weeks but the ascent has been choppy, slow and limited as the index has generated 3 green weekly closes to the upside and 3 red weekly closes to the downside and only gained a total of 150 points over this period of time. The previous week the index made a new all-time intra-week and weekly closing high above the top of the 17000 demilitarized zone (closed at 17068) "and" closed on the highs of the week but did not see any follow through last week, suggesting that the traders are reluctant to move substantially higher above the psychological resistance at 17000 without some tangible evidence (such as the second quarter earnings results) to support higher prices.
The DOW saw a slight downward bias this past week, having generated red closes on 3 of the 5 days, but then closing on the highs of the day on Friday, suggesting the first course of action for the week will be to the upside. By the same token, earnings and not charts will be what the traders key on this week and with GS, JPM, and JNJ coming out before the opening bell on Tuesday and then followed by DIS, GE and IBM over the next couple of days thereafter, it is possible the traders may start to make decisions this week on what the trend for the index will be for the summer.
The "general" levels of resistance and support to the upside and to the downside are clearly defined with the 16700 level being support, the 17000 demilitarized zone being pivotal, and the 17300 level being resistance. Actual resistance is found at 16970/16978 and at the all-time high at 17074. Actual support is found at Thursday's low at 16805 and then at 16746 and lastly at 16703. If the index is able to make a new high above the previous weeks' high at 17074, the probabilities would favor 17300 being seen. If the index is able to get below 16805, the probabilities would favor 16703 being seen.
The DOW has not yet given any indication that the uptrend is faltering so the burden of proof remains on the shoulders of the bears. By the same token, the present rate of growth in the economy does not support much higher prices and with the "sell in May and go away" seasonal correction still having a window for it to occur (in 2011 it started the last week of July), there is real fear that some catalyst could come out over the next 3 weeks and trigger a downdraft. It should be mentioned that inflation now seems to be what the traders are keying on and with the PPI report coming out on Wednesday it is possible it could be the catalyst that "turns the tide around".
Higher prices in the DOW are expected to be seen this week but the index remains at great risk of a downturn.
NASDAQ Friday closing price - 4415
The NASDAQ made a new 14-year high weekly close 5 weeks ago, above the previous high weekly close at 4336, and the bulls have been able to maintain the index trading above that level, suggesting further upside is yet to come. Nonetheless, some selling interest was seen this past week as the index ran up to 4485 and then proceeded to drop 3% in value from the previous week's high to last week's low at 4351. It is possible and maybe even likely that the psychological resistance at 4500, as well as the need to retest the previous breakout level, were the reasons for the weakness seen and if that is the case then the uptrend will resume. Nonetheless, with so many important earnings reports due out over the next 3 weeks, the index is now at the mercy of the fundamental picture and not the technical picture, meaning that last week's action could end up being meaningless.
The NASDAQ closed in the exact middle of the week's trading range but on the highs of the day on Friday and the first course of action for the week is likely to be to the upside with closure of the gap generated on Tuesday between 4447 and 4443 as the objective. Nonetheless, with the weekly chart being totally un-committal, it likely means the index will move on how the economic/earnings reports are evaluated and not on the technical picture.
On a purely technical basis, the NASDAQ did get down to 4351 on Thursday and it could be said that the drop down to that price was the needed retest of the 4336-4371 area that included the previous weekly/daily closes and intra-week highs seen in March. Such a retest, if successful, would suggest the uptrend is about to resume with the 4700-5000 area as the objective, especially since the resistance at 4485 can only be considered psychological and then only minor at that.
To the upside, the NASDAQ shows minor intra-week as well as daily/weekly close resistance at 4485. A break above that level shows no weekly close resistance above until 4963 is reached. Nonetheless, on a monthly closing basis, resistance is found at 4696. To the downside, the NASDAQ shows minor intra-week support at 4351 and again at 4336/4339 that does include the previous high weekly close at 4336, which is important and pivotal as a weekly close below that level would suggest a failure to follow through signal would be given. Further but also minor intra-week support is found at 4284 and slightly stronger between 4239 and 4250. A break below 4207 would likely cause a drop down to 4000 as well as being a negative sign.
The NASDAQ is not going to be in the spotlight this week, except perhaps on Friday after Thursday's afternoon's earnings report on GOOG comes out. As such, the index is likely to play second fiddle to the DOW and the SPX which are likely to be the indexes the traders key on this week. The index will probably trade within the recent 4351-4485 trading range without much direction until some catalyst pops up.
SPX Friday closing price - 1967
The SPX has continued to go higher having reached an all-time high at 1985 the previous week. Nonetheless, some selling interest is being seen as the index has flip-flopped red and green weekly closes for the past 6 weeks and has only moved up 35 points (1.8%) during this period of time, up from the 1949 high seen the first week in June.
The SPX is likely to be in the spotlight this week since a large part of the important reports due out are in the financial industry (GS, JPM, C, and BAC). On Friday, WFC reported earnings and though they came in slightly better than expected the reaction was a red close at the end of the day, suggesting that the earnings reports this week will have to be substantially better to generate any new buying interest at these prices. The SPX is evidently finding increased selling coming in as it approaches the 2000 level and will probably need fundamental help to get over such a "major" psychological obstacle.
To the upside, the SPX now shows actual resistance at 1985, having reached that level a week ago Friday and then generating 3 out of 5 red closes this past week. To the downside, last week's low at 1952 will offer some minor support. Further support, though minor in nature, will be found at 1944 and a bit stronger at 1925 (1930 on a daily closing basis). Below that level, minor support from previous highs is found between 1897 and 1902, and then nothing until the 1850-1862 level. On a weekly closing basis, there are no support levels of consequence nearby but a weekly close below 1936 would now be considered a decent negative.
The SPX chart does suggest the index will be trading between the 1950 and 2000 level for the next couple of weeks, or until something is decided in the index market.
The indexes are now into a period of time where decisions are likely to be made fundamentally and not technically. The earnings and economic reports due out over the next 3 weeks are likely to decide the fate of the market until the next earnings quarter in October. Nonetheless, the probabilities are now slightly shifting to the downside as the Fed has already announced the Bond buying program will end by October and the positive effects of Fed Chief Yellen's announcement of interest rates likely to remain low until the second quarter of 2016 are diminishing. In addition, inflation is now starting to grab the attention of the market as the recent reports have shown inflation to be moving at a slightly higher pace than what the Fed had anticipated it would.
There are several economic reports this week (Retail Sales, PPI and Housing data), as well as earnings reports (GS, JPM, JNJ, GE, IBM, GOOG, BAC, YHOO, and XOM) that could help traders decide what the market is going to do for the summer. With the DOW and the SPX at strong psychological resistance areas and the NASDAQ backing up 3% this past week, the traders are getting antsy about further buying at these levels. In addition, volatility has begun to climb back up again, suggesting that something is afoot that could cause the market to reverse direction, at least for the summer.
The burden of proof is still on the shoulders of the bears but more and more analysts and traders are expecting a pullback, meaning that at some point the bulls will run out of ammunition to keep things heading upwards.
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Stock Analysis/Evaluation
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CHART Outlooks
The traders are waiting for the bulk of the earnings reports for the quarter to come out over the next 2-3 weeks in order to make decisions on what the direction will be for the next 2-3 months. The probabilities continue to favor a seasonal summer correction occurring, meaning that short positions still offer the best risk/reward ratios as well as the best probability ratings, though probability ratings are by nature lower than usual due to the continuing Fed support of the market.
By the same token, the trend is still up and that means that short positions can only be considered if desired short entry points are found where risk/reward ratios are attractive. This scenario will continue to be true until the index market gives some kind of a sell signal.
The mentions this week have been stocks that have recently been mentioned but have not reached the desired entry points. Two of the mentions are sales and one is a purchase. Other mentions will be given in the message board if the opportunity arises while the market trades.
SALES
LEN Friday Closing Price - 40.27
LEN seems to have been in a pause/sideways mode for the past 18 months (ever since the stock first broke above the $40 level in January 2013) and there seems to be no reason to think that the trading range seen during this period of time (30.90 to 44.40) will be broken in either direction any time soon. In fact, the stock has built a strong double high at the 44.40 level (43.82/43.88 on the weekly closing chart), having gone up to that level in January 2013 and again in February of this year, meaning that the probabilities favor the downside at this time.
LEN closed in the red on Friday, making last week's close at 41.93 into a possible and maybe even likely successful retest of the double top on the weekly closing chart at 43.82 and 43.88. In addition, there is clear resistance on the monthly closing chart between 41.54 and 42.21, meaning that if the stock closes out the month below 41.98 that a successful Head & Shoulders formation will have been built on the monthly chart. Whether the H&S formation has been built or not (won't be known until July 31st), it is evident that the bulls have not been able to re-generate the uptrend that started on September 2011 at 12.14 and hit a brick wall in January 2012 at 44.40. With housing still a major concern for the economy, the probabilities favor the stock continuing to trade in a sideways fashion for another 3-5 months.
To the upside, LEN will show intra-week resistance at the previous week's high at 42.67. Further resistance will be found at 43.22, at 43.90 and at the double top at 44.40. The possibilities still exist that the stock will get up to the 43.22 level and perhaps even up to 43.90 but further than that would probably mean the stock is ready to resume the uptrend with $50 as the objective. Nonetheless, if the stock gets below 40.01 this week, the possibility of the stock getting above 42.67 will diminish and a new entry point will need to be determined. Keeping in mind that the seasonal correction (sell in May and go away) has not been totally discarded and that the Housing industry is still showing a glut of unsold homes, a sell position seems to be the best route to go.
To the downside, the $40 demilitarized zone continues to be seen as support as well as a long-term pivot point. Further support is found at the general support area at $37 which does show 5 previous as well as important intra-week lows between 36.40 and 37.32 that have been generated over the past 16 months. A break below that level would suggest LEN will test the 30.90 low that was seen in August of last year. If that level is broken, the stock would likely go down to the 200-month MA, currently at 27.30. That line has been pivotal over the past 7 years, having been tested successfully 3 times after the line was broken to the downside and 1 time after it was broken back to the upside. A drop back down to that line would likely occur if the seasonal correction occurs. It should be mentioned that the 200-day MA is currently at 38.25 and that is a highly likely objective if the stock is to continue trading sideways.
On May 23rd, LEN broke above the $40 level on a daily closing basis and has stayed above that level for the past 33 trading days, having tested the level successfully on June 13th and again on June 17th. Nonetheless, that may be changing this week with the red close and on the lows of the week, meaning that if the $40 level gets broken to the downside on a daily closing basis the upside outlook will need to be re-evaluated. The desired entry points mentioned 2 weeks ago will remain in place for now but they may be changed this week and the $40 level breaks. If that happens, I will give the new desired entry points on the message board.
Sales of LEN between 43.21 and 43.89 and using a stop loss at 44.50 and having a 38.25 objective will offer a 4-1 risk/reward ratio.
My rating on the trade is a 3.25 (on a scale of 1-5 with 5 being the highest).
CAT Friday Closing Price - 109.96
CAT has been a standing sell mention for the past 4 weeks if and when the stock gets up to July 2011 highs around 112.65. It must be remembered that at the end of July 2011 the market and the stock took a big tumble, fulfilling the "sell in May and go away" adage for that year. The stock itself tumbled from 112.65 all the way down to 80.00 in just 7 weeks and the possibility is decent that the stock will do the same thing this year.
CAT has been on an uptrend for the past 8 weeks, having seen a low 100.72 on May 20th and all up since. Last week when the indexes saw some selling interest, the stock dipped down to 107.80 but then recovered on Friday to close near the highs of the week, suggesting further upside above last week's high at 110.45, will be seen this week. With the recent high seen the previous week at 111.16 offering no history of resistance there, it is likely that if last week's high at 110.45 is broken than 111.16 will see the same fate.
To the upside, CAT will show decent resistance between 112.43 and 112.65. Above that level, further resistance will be found between 113.93 and 114.25. Strong resistance is found at the double top at 116.55/116.95. To the downside, support is found at 100.72 and down to the $100 demilitarized zone. Further support is found at 97.01 and then nothing until 94.20, which does include the 200-week MA, currently at 93.55.
CAT is a stock that just 8 months ago was trading around the $80 level and looking to go down to a major low at 67.54. The bulls were able to turn it around with the help of the index market but the fundamental picture has not become markedly better, meaning that the stock could easily be overvalued at this time. In addition, with the stock now likely to reach a decent resistance level that stopped the index in 2011 and being almost 28% higher in price than when the stock was looking strongly weak, the trade does offer a very attractive risk/reward ratio as well as a good probability rating, at least from a chart point of view.
Sales of CAT between 112.42 and 112.64 and using a stop loss at 116.95 and having an $80 objective will offer a 7-1 risk/reward ratio.
My rating on the trade is a 4 (on a scale of 1-5 with 5 being the highest).
PURCHASES
AKS Friday Closing Price - 8.39
AKS is a steel company that was recently upgraded by BankofAmerica/MerrillLynch to a buy with a target of $10. The stock has also built a very reliable and strong rounded bottom over the past 6 years that does support the idea that the stock is poised to start a strong short-covering rally of even an uptrend. The upgrade information states that the company should be boosted by electrical steel demand in the second half of the year.
Three weeks ago, AKS broke above the 200-week MA, currently at 8.00, and the breakout was confirmed last week with another close above the line. The stock did generate an inside week and a red close on Friday, suggesting that the bulls are not yet ready to take the stock immediately higher and that the probabilities are high that the line will be retested before much further upside is seen. By the same token, the break above the line does suggest the stock is now likely to get a strong strong short-covering rally if not the beginning of an uptrend as soon as the breakout is retested successfully. By the same token, rarely does a stock convincingly break such an important line without news and the earnings report is not due out until 7/29, likely meaning the stock will trade around the line for the next 2 weeks. This is especially true since the stock has been trading below the line for the past 6 years.
To the upside, AKS will show resistance at 8.47, at 9.35 and at 10.33. Above 10.33 it is "open air" until 15.70 is reached. To the downside, the stock shows minor support at 8.12 and then nothing until 7.55 and 7.36 are reached. Further support is now found at the breakaway gap area between 6.64 and 6.74. In addition, the stock has an upward pennant that includes a flagpole and the low of the flag is at 7.21 and that likely means that the bears will have a tough time getting the stock below that level at this time.
The AKS chart is looking bullish from a lot of perspectives, starting from the fact that it has built a pennant formation on the weekly chart over the past 2 years that if broken (a weekly close above 8.47) offers a 14.02 objective. Additionally on the daily chart, the stock has an upward pennant as well that if broken (also a daily close above 8.47) will offer a short -term objective of 10.66. It should also be mentioned that the stock was trading at 73.06 back in May 2008 and is a stock that will likely act contrary to what the stock market does, meaning that if the indexes do get into the seasonal correction it would enhance the chances of the stock moving up.
The biggest problem with the trade is finding the best entry point as there are conflicting chart scenarios in place. The upward pennant seen on the daily chart suggests the stock will be moving higher from here on in but the fact the 200-week MA is involved does suggest some caution should be used since the line is rarely broken convincingly on the first attempt. Nonetheless, the overall outlook, both fundamentally and chart-wise, does suggest this stock could be a buy and hold stock for now, meaning that the entry point is not as important as it would normally be and that no close-by stop loss placements should be used. At this time, the 200-week MA, currently at 8.00, should be used as a buy point but if broken on a weekly closing basis, the stock is likely to drop down to the 7.03-7.21 level.
Purchases of AKS between 8.00 and 8.05 and using a 7.65 stop loss and having an objective of 10.66 will offer a 6-1 risk/reward ratio. If a stop loss at 6.64 is used and the objective is raised to the 15.70 level, the risk/reward ratio would be 5-1. The preferred way to trade the stock is using a 6.64 stop loss. Additional purchases can be made on drops down to the 7.03-7.21 level.
My rating on the trade is 4 (on a scale of 1-5 with 5 being the highest).
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Updates
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| Monthly & Yearly Portfolio Results
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Closed Trades, Open Positions and Stop Loss Changes
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Status of account for 2007: Profit of $9,758 per 100 shares after losses and commissions were subtracted. Status of account for 2014, as of 5/1 Profit of $15714 using 100 shares per mention (after commissions & losses) Closed out profitable trades for June per 100 shares per mention (after commission)
DD (short) $144 WDC (short) $151 Closed positions with increase in equity above last months close minus commissions. NONE Total Profit for June, per 100 shares and after commissions $296 Closed out losing trades for June per 100 shares of each mention (including commission)
STZ (short) $631
CAT (short) $21 HAL (short) $75 EBAY (short) $57 Closed positions with decrease in equity below last months close plus commissions.
ARNA (long) $10 Total Loss for June, per 100 shares, including commissions $1424 Open positions in profit per 100 shares per mention as of 6/30 OXY (short) $257 Open positions with increase in equity above last months close. MELI (long) $4132 FCEL (long) $18 SINA (long) $992 Total $5399 Open positions in loss per 100 shares per mention as of 6/30
NONE
Open positions with decrease in equity below last months close.
CVX (short) $1552 Total $1656 Status of trades for month of June per 100 shares on each mention after losses and commission subtractions.
Profit of $2615
Status of account/portfolio for 2014, as of 6/30Profit of $18329 using 100 shares traded per mention.
AAPL generated another 22-month weekly closing high on Friday, meaning that the uptrend continues. The stock did close in the exact middle of the week's trading range, leaving the door open for some downside this coming week if the market decides to go lower, but the probabilities continue to favor the bulls in testing the all-time high at 100.72 (100.13 on a weekly closing basis) before any real selling interest is found. Short-term indicative support is found at 93.52 that if broken would likely cause the stock to go down to the $90 demilitarized zone. As such, the stop loss will be raised to 93.42 for this week. Probabilities favor the bulls.
ARNA fell 18.5% in value (from 5.84 to 4.76) this past week after it was announced the CEO of the company had sold some shares. The stock did get down slightly below the 200-week MA, currently at 4.90, with a drop down to 4.76 but the bulls were able to stimulate some buying interest at that level to close in the upper half of the week's trading range, suggesting that last week's high at 5.69 will be broken this week. If that occurs, it can be said the 200-week MA will have been successfully tested for a second time and that the uptrend will resume. The stock did generate a gap between 5.79 and 5.69 that will be a target this week. The stock did close on the highs of the day on Friday and further upside above 5.37 is likely to be seen on Monday. Resistance will be found at 5.69 and then nothing of consequence until the 200-day MA, currently at 6.00. If the bulls fail to close the gap, a drop back down to the 4.90-5.00 level will likely be seen. Nonetheless, the action seen at the end of the week does suggest the gap will be closed and if that occurs, the 5.30-5.40 level will become support. Probabilities favor the bulls. CVX generated a red weekly close on Friday, making last week's close at 131.19 into a successful retest of the all-time high weekly close at 132.34. The stock closed on the lows of the week and in a spike down fashion, suggesting further downside below last week's low at 128.03 will be seen this week. The previous all-time high daily close at 127.76 and the previous all-time high weekly close at 127.56 are the downside targets, at least on a closing basis. Nonetheless, on an intra-week basis, a drop down to the 50-day MA, currently at 126.60, is likely to be seen. It should be noted that no previous intra-week support is found until minor support at 123.58. Strong support is found at 121.65. The decision on whether to cover the shorts on this drop is going to be difficult since the all-time high has been tested successfully on both the daily and weekly chart. By the same token, if the stock is able to retest the previous all-time high successfully, then the probabilities will increase that the uptrend will resume. I am probably going to stay short but may change my mind. ELON remained under sell pressure as the stock closed on the lows of the week and within 2 points of closing the breakaway gap at 2.30 that was generated on January 14th. Nonetheless, up to now and for the past 27 days since the stock broke below the 200-day MA, currently at 2.60, the bears have been unsuccessful in closing the gap and that remains the only positive that can be stated about the mention. Minor resistance is now found at 2.43 and decent resistance is found between 2.55 and 2.60. Probabilities favor the bears. FCEL continued to deteriorate having generated the third red weekly close in a row and the 13th red daily close out of the last 16 days. The stock closed near the lows of the week and further downside below last week's low at 2.10 is expected to be seen. The buying interest has unexplainably disappeared after the small buy signal that was given on June 19th and it does bring into question whether the bulls will be able to get something going to the upside without positive fundamental news being received. The stock shows support at 2.10 and then nothing until the 2.00/2.04 level is reached. Important support is found at 1.86 that includes the 200-day MA, currently at 1.90. The weekly chart does suggest that a drop back down to 2.00/2.04 will be seen but it also suggests the level will hold up. The 2.60 level is now key resistance. GIGM generated a red weekly close, making last week's close at 1.14 into a successful retest of the 200-week MA, currently at 1.15. The stock closed near the lows of the week and further downside below last week's low at 1.03 is likely to be seen. The stock does show a triple bottom at the 1.00 level and with the successful retest of the MA line, it does suggest the level will get broken and a drop down to .96 cents seen. By the same token, the bulls are likely to have some success at the beginning of the week with a rally up to the 200-day MA, currently at 1.11, expected to be seen. MELI generated a red weekly close, as well as near the lows of the week, suggesting the stock will go below last week's low at 89.08 this coming week. Nonetheless, the drop in price was not unexpected as a retest of the 200-week MA, currently at 88.05, was expected to be seen at some point, especially since the stock broke the line to the downside for 4 weeks and just broke above it 5 weeks ago. If the retest is successful, the traders will likely get back aboard in a big way and push the stock up to the upgrade objective at $104. Support is found at 88.82/89.08 and at 87.88. Further and likely more indicative support is found at 87.88. A weekly close below 87.54 would be considered a negative. An intra-week rally above 93.84 would be considered a strong positive. Probabilities favor some weakness early in the week and strength toward the end of the week. OXY generated a red weekly close and near the lows of the week, suggesting further downside below last week's low at 99.73 will be seen this week. Support will be found at the previous high weekly close at 99.37, which does include the 50-day MA, currently at 99.70. The stock did close on the highs of the day on Friday and the first course of action for the week is likely to be to the upside, with minor resistance found at 100.97 and then nothing of consequence until the mid 103's are reached. The weekly chart does suggest that further downside, down to the 94.63, is likely to be seen but whether the stock goes up to test the recent high at 105.64 first or go down first is still a bit of a mystery. Probabilities do favor the 50-day MA holding up at this point and a rally up to 102.64-103.50 seen, before new selling appears. Possible trading range for this week could be something like 99.37 to 102.01. SINA gave up most of the gains made during the previous 2 weeks and closed near the lows of the week, suggesting further downside below last week's low at 44.86 will be seen this week. Nonetheless, the bulls were able to generate enough new buying on Friday to rally and close the stock above 46.25 (a weekly close support level which needed to hold for the stock to maintain a positive outlook). Pivotal intra-week support is found at 44.57, which needs to hold in order to prevent a sell signal from being given. Minor but likely also pivotal resistance is found at 47.60. Stronger support is found at 49.70 that if broken would likely bring in new buying interest. Probabilities favor a 44.57 to 49.60 trading range this coming week. VHC continued to be under short-term sell pressure after the stock generated a second red weekly close and confirmed that the close 3 weeks ago at 17.98 was a successful retest of the 50-week MA. The stock closed near the lows of the week, suggesting that further downside below last week's low at 14.94 will be seen this week. The stock also broke below the 50 and 100 day MA's this past week, both currently at 15.75, also suggesting further downside is likely to be seen. Minor support is found at 14.77 that includes the bottom of the psychological support at the $15 demilitarized zone. The stock is showing a possible inverted flag formation that if broken (a drop below 14.94) would offer a 12.13 objective. Nonetheless, the stock is waiting for a judge's ruling on one of its patent claims against AAPL and it is expected that ruling will come out this week, meaning that the stock is likely to react more to the ruling than the chart picture. Stop loss should remain at 14.65.
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1) ELON - Averaged long at 5.534 (4 mentions). No stop loss at present. Stock closed on Friday at 2.33.
2) OXY - Averaged short at 103.486 (3 mentions) Stop loss at 106.78. Stock closed on Friday at 100.48.
3) FCEL - Averaged long at 2.276 (3 mentions). No stop loss at this time. Stock closed on Friday at 2.13.
4) VHC - Purchased at 15.43. Stop loss at 14.65. Stock closed on Friday at 15.46.
5) MELI - Averaged long at 84.552 (4 mentions). Stop loss now at 85.29. Stock closed on Friday at 90.38.
6) AAPL - Purchased at 94.62. Stop loss at 93.42. Stock closed on Friday at 95.22.
7) GIGM - Averaged long at 1.225 (2 mentions). No stop loss at present. Stock closed on Friday at 1.05.
8) ARNA - Purchased at 4.82. Stop loss at 4.66. Stock closed on Friday at 5.37.
9) CVX - Averaged short at 125.855 (2 mentions). No stop loss at present. Stock closed on Friday at 128.47.
10) EBAY - Shorted at 50.11. Covered shorts at 50.54. Loss on the trade of $43 per 100 shares plus commissions.
11) SINA - Purchased at 50.73. Liquidated at 48.62. Loss on the trade of $211 per 100 shares plus commissions. 12) SINA - Purchased at 45.82. Averaged long at 46.316 (3 mentions). Stop loss now at 44.47. Stock closed on Friday at 46.67.
13) SINA - Purchased at 46.21. Liquidated at 46.80. Profit on the trade of $59 per 100 shares minus commissions.
Previous Newsletters
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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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