 |
 |
 |
 |
 |
 |
Issue #525 
Apr 30, 2017 | Newsletter
The newsletter with chart analysis for stocks and stock indexes |
Stock Indexes Analysis/Evaluation
|
| Earnings Surpass Expectations and Market Rallies Strongly. Seasonal Correction Still Looms.
DOW Friday closing price - 20940
The DOW generated a strong up week, having rallied intra-week 523 points from last week's close and in the process creating a powerful and possibly indicative breakaway/runaway gap formation that if confirmed this week with new all-time highs could mean a new leg up in the uptrend has begun.
On the other side of the coin, the DOW failed to make a new all-time intra-week or weekly closing high, having fallen short of the intra-week high by 99 points and by 65 points on the weekly closing chart. The failure to make a new all-time weekly closing high was particularly worrisome as the index traded up to, close to, or above the previous weekly closing high at 21005 every day of the week since the level was reached on Tuesday but in the end the bulls "could not get it done". Considering that earnings news was particularly beneficial to the index (11 companies reported and most of them much better than expected) and that the NASDAQ accomplished both and the SPX made a new all-time weekly closing high, the failure to make a new high in spite of all the economic and chart positives could be indicative that a new leg up in the uptrend will "not" occur and that a top to this rally will be set this week. This scenario is especially worrisome to the bulls, considering that as of Tuesday after the close, the first 3 weeks of the earnings quarter that includes most of the possibly catalytic reports will be over.
The DOW did close in the upper half of the week's trading range and further upside above 20070 is expected to be seen. Nonetheless, if the AAPL earnings report on Tuesday afternoon does not help the index generate a new all-time high, the traders may turn around and become sellers.
To the upside and on an intra-week basis, the DOW now shows minor resistance at 21,000, minor to perhaps decent at 20,070 and decent as well as pivotal at 21,169.
To the downside and on an intra-week basis, the DOW now shows minor support at 20,777 and again at 20,517. Decent and likely pivotal support is found between 20,412 and 20.379. Below that level, there is nothing until the 20000 demilitarized zone (19970-20030) is reached.
The chart picture for the DOW is now clearly defined, at least for the short term. The index gapped up on Monday between 20,601 and 20,723 and again on Tuesday between 20,792 and 20,906, creating what is considered a breakaway/runaway gap formation. As such, closure of the first gap would suggest closure of the second gap, which in turn would put the index 568 points from the all-time intra-week high, with no further possibly catalytic earnings reports scheduled, and going into the summer months where a seasonal correction usually occurs. On the other side of the coin, a new all-time high above 21169 would likely stimulate new buying interest and open the possibility of a new leg up in the uptrend.
There is one third possible scenario using past history as a possible guide. In 1999, the DOW first broke the 10,000 level and rallied straight up to 11,130, a correction then occurred that took the index down to 10,409 which was then followed by another new high at 11,252, which was then followed by another correction back down to 10,527, which was then again followed by another new high at 11,365, which was then followed by a stronger correction that took the index back down under 10,000. This same scenario could be occurring here as the index rallied straight up to 21,169 after breaking 20,000 the first time, corrected down to 20,379 and is now rallying back up again with a new high as its goal. If the index mimics 1999, a rally up to and possibly slightly above 21,252-21,300 could be seen which would then cause the index to come back down and close both the runaway and breakaway gap down to 20,601, which would mean 1999 would continue to be mimicked.
Nonetheless, the bulls in the DOW need to be committed to making a new high this week or face a failure signal that might be interpreted as a major top having been made and that would likely generate strong profit taking interest after a 3000+ rally that has yet to be supported with actual accomplishments by the Trump administration.
Probabilities favor the bulls in the DOW this week but it is a pivotal week.
SPX Friday closing price - 2384
The SPX generated a new all-time weekly closing high on Friday, having rallied 70 points (2.5%) from the previous Friday's close. Nonetheless, the new all-time weekly closing high was only by 1 point (2384 vs 2383) and the previous all-time intra-week high at 2400 was not broken (got up to 2398), meaning there are still question marks as to whether the uptrend has resumed or not. In addition, the index closed exactly in the middle of the week's trading range, suggesting this coming week neither the bulls nor the bears have a clear edge in deciding what the index will do going into the summer months, especially with the first 3 weeks of the earnings quarter finishing on Tuesday after AAPL and FB report.
Like with the other indexes, the SPX also generated a breakaway/runaway gap formation, having gapped up on Monday between 2356 and 2369 and again on Tuesday between 2376 and 2381. The formation supports a new leg up on the uptrend and new all-time highs being made. By the same token, the failure by 2 points to make a new all-time intra-week high and the close just 1 point above the previous high suggests that a double top might be in place, if and when the index closes in the red next Friday.
To the upside and on an intra-week basis, the SPX now shows minor resistance at 2390 and decent at 2398/2400.
To the downside and on an intra-week basis, the SPX now shows minor support at 2354, minor again at 2336, minor to perhaps decent at 2328 and decent as well as short-term pivotal at 2322.
The SPX remains a follower and not a leader, meaning that the NASDAQ and the DOW will be the deciding factors on direction. Nonetheless, with most of the important/catalytic reports now out, the bulls are not going to have any new ammunition after Tuesday and that does not bode well for the index. In addition, the bulls need additional fundamental help to support the breakaway/runaway gap formation and that is not likely to be found. As such and from a purely chart point of view, this coming week is pivotal. Probabilities slightly favor the bears.
NASDAQ Friday closing price - 6047
The NASDAQ made yet another new all-time intra-week and weekly closing high on Friday and closed in the upper half of the week's trading range, suggesting further upside above last week's high at 6074 will be seen this week. The index was helped by strong earnings reports on AMZN and GOOGL and continues to lead the market to the upside.
The NASDAQ generated a weekly gap last week, having had a high the previous week at 5926 and opening last week at 5070 and continuing higher from there. In the last 10 years there have only been 2 previous occasions where a weekly gap occurred and the first one was in July 2015 when the index gapped up from 5020 to 5036 and went on to close out the week at the highs of the week. The following week, the index got above 5210 and up to 5231 but then turned around and closed out the week in the red and within 3 weeks the gap had been closed and within 5 weeks the index had fallen 18% (from 5231 to 4292). The second time a weekly gap occurred was in July of last year when the index gapped up from 4958 to 4976 and on that occasion the index continued higher for an additional 5 weeks and generated a rally up to 5271 before any selling was seen. That gap has not yet been closed. The only difference I could find between those 2 previous weekly gaps is that the first one, the one that got closed within 3 weeks, occurred "after" the first 3 weeks of the earnings quarter were over and the second one, the one that generated further upside and has not been closed, happened just before the first 3 weeks of the earnings quarter began and does suggest that it was the positives of the earnings quarter that gave additional ammunition to the bulls to continue higher. That will not be the case this time.
The first 3 weeks of the earnings quarter in the NASDAQ will end on Tuesday after the close when AAPL and FB report. Once those 2 reports are out the traders will have to decide whether there are enough fundamental reasons to continue higher or not. Based on the seasonal correction that has usually started at the beginning of May and the probability that the Trump administration will not be able to get their Tax Reform passed before August (if then), it does suggest that the index will generate a negative reversal week, much like what happened in 2015.
To the upside and on an intra-week basis, the NASDAQ shows no resistance above.
To the downside and on an intra-week basis, the NASDAQ does not show any support until very minor support at 5855, minor at 5819 and minor to decent as well as short-term pivotal at 5800/5805. Below that level, there is minor support at 5781 and decent as well as pivotal at 5769.
It is evident that this coming week in the NASDAQ will be the index that traders watch based on where the index closes next Friday (red or green). The 6000 psychological resistance was clearly broken this past week, meaning that it will either become support for an additional run to the upside or an immediate magnet to the downside and the beginning of the seasonal correction if the bulls cannot keep the index going higher.
Probabilities favor the bears in the NASDAQ for a red close at the end of the week, which in turn would be a "clear" signal to the traders to take profits on their long positions.
The first 3 weeks of the earnings quarter, which includes most of the possibly catalytic earnings reports, will end on Tuesday after AAPL and FB report. This means that the bulls will need to find some other fundamental reason to keep the recent uptrend moving higher and with the failure so far of the Trump administration to institute their game plan of repealing Obamacare and getting Tax Reform moving forward or even getting it addressed before August, as well as facing a summer period where a seasonal correction usually occurs, it does not seem that the bulls have the kind of ammunition to keep the uptrend intact.
The first week of May has often been a pivotal in the past for the beginning of a summer correction and certainly the indexes are at chart levels that are meaningful not only from the recent action but also from past history. With the indexes having rallied over 15% since the Trump win in November it can be said that they are primed more for a correction than for further upside, especially since none of the promises that supported the rally have been accomplished yet. What the indexes do this week, especially for the weekly close next Friday, is likely to be indicative of what will occur for the next 4-6 weeks.
|
Stock Analysis/Evaluation
|
CHART Outlooks
The first 3 weeks of the earnings quarter will end on Tuesday May 2nd when AAPL and FB report. There is a seasonal tendency for a correction to begin the first week of May and with the index market having rallied over 13% since the election and none of the promises that supported the rally (Tax Reform and Infrastructure spending) have been fulfilled so far and not likely to be done by August (if then), the probabilities of a correction occurring are high.
All mentions this week are sales based on the assumption that 1) the seasonal correction will occur, 2) the bulls do not have ammunition to continue taking things higher, 3) the adage about buy low and sell high, and lastly 4) the market is mimicking the action seen in 1999.
SALES
CAT Friday Closing Price - 102.26
CAT made a major double top in 2011 at 116.55 and since has created a clearly defined and chart-perfect long term downtrend channel with 2 points on the top at 116.95 and at 111.46 and on the bottom at 67.54 and at 56.36. The company reported earnings last Tuesday and they were much better than expected, causing the stock to gap up between 97.06 and 102.23 and spike up to the now 6 year downtrend channel that is presently at 106.00 with a rally to 105.98. Evidently, the traders were looking at the channel since once it was reached on Wednesday it was followed by 2 red days and a drop back down to the gap area with a drop on Friday to 102.23.
CAT did close in the upper half of the week's trading range, suggesting further upside above 105.98 will be seen this week but given that 2 days after the better than expected earnings report (before the end of the 3-day period of time when margin calls normally keep the uptrend moving forward) selling of some consequence was seen, it has become unlikely that even if the stock goes above last week's high this week (not a given) that it will be by a substantial margin. It should be mentioned that on the 2 occasions in the past that make up the top of the downtrend channel, the stock also closed in the upper half of the week's trading range but on both occasions the bulls failed to take the stock above the previous week's high. The first time they failed by 45 points (116.95 to 116.50) and the second time they failed by 18 points (111.46 to 111.28). This means that the stock could (and likely will) get up above 105.00 this week but if the same scenario occurs, somewhere above 105.00 (likely around 105.50)selling will be seen.
To the upside and on an intra-week basis, CAT shows minor to perhaps decent resistance at 107.12 and at 109.73 and decent as well as long-term pivotal at 111.46.
To the downside and on an intra-week basis, CAT shows minor support at 100.72 and slightly stronger at 99.11. Below that, decent and mid-term pivotal support is found at 90.34.
If the downtrend channel line holds up (as the chart suggests it will), CAT is likely to generate a short-term move down to the 100.00 level (give or take $1) and then generate a retest of the high as it did on the 2 previous occasions. All of that action to occur over a period of 3-5 weeks. Nonetheless, if that scenario occurs, the stock would then likely get on a mid-term downtrend down to the $80 over a period of about 6 months (also as it did on the 2 previous occasions).
The only thing that is different on this rally up to the channel line is that it happened on a spike basis and not like on the 2 previous occasions where it took about 5 weeks of inching upward to reach the line. As such, the traders will not be as confident in selling as they would have been if the approach was the same as in the past. Nonetheless, with the seasonal correction likely to start this week and the risk/reward ratio being so good, it is a trade that should be strongly considered.
Sales of CAT above 105.50 and using a stop loss at 107.35 and having an $80 objective (over a period of 6 months) will offer a 13-1 risk/reward ratio.
My rating on the trade is 2.75 (on a scale of 1-5 with 5 being the highest).
LVS Friday Closing Price - 58.99
LVS made a new 20-week high last week and closed above the 200-week MA line, currently at 58.50, for the first time since November. Nonetheless, the stock has broken the line to the upside on 6 different occasions during the past 2.33 years but never more than for a week or two, In fact, the stock has traded below the line for 109 weeks out of the last 117, meaning that the break above the line this past week was not likely indicative, especially considering that the initial reaction to the earnings report that came out on Thursday was negative.
LVS has been on an uptrend for the past 15 months, from a low at 34.88 to the high seen 3 weeks ago at 58.50 but the fact the stock and the index market will be facing a likely seasonal correction and that the 200-week MA has only been broken 8 times during the last 27 months and each time the break only lasted a couple of weeks, suggests this stock could be a strong sell for a fast drop over the next couple of months.
To the upside and on an intra-week basis, LVS minor to perhaps decent resistance at the $60 demilitarized zone, and minor again at 61.59. Above that level, there is decent and certainly pivotal resistance at 63.38 that is unlikely to be broken under the present market conditions.
To the downside and on an intra-week basis, LVS shows minor to perhaps decent support at 55.18 and at 54.71, and then minor to decent at 52.54 and decent as well as pivotal at 51.35. Below that level, there is support at 49.82, a bit stronger at 47.95 and then a vacuum until 44.07 is reached.
LVS reported earnings on Thursday and they failed to generate a rally of consequence. In fact, the initial reaction to the earnings was negative. Nonetheless, and likely in harmony with the index rally, the bulls were able to get up to the $60 demilitarized zone and the stock closed near the highs of the week, suggesting further upside above last week's high at 59.85 is expected to be seen this week.
Two years ago, LVS rallied up to 61.59 and generated a weekly close at 60.43. It does seem likely that the same kind of scenario is to occur on this occasion as now that the earnings are out, the seasonal correction is likely to begin, and the indexes are unlikely to head much higher, not to mention the fact that the history of the stock over the past 2.33 year suggests that the stock will go back to being under sell pressure and that the $50-$53 level is a viable downside objective.
Sales of LVS above 60.43 (hopefully around 61.50) and using a stop loss at 63.48 and having a $50 objective will offer a 3.5-1 risk/reward ratio.
My rating on the trade is a 4 (on a scale of 1-5 with 5 being the highest).
SINA Friday Closing Price - 76.81
SINA has traded between 40.00 and 80.00 for a total of 240 weeks out of the last 282 weeks (85% of the time) and of the 42 weeks that it traded out of that range, 15 of them were above the range and 27 of them were below the range, suggesting the traders have slightly favored the sell side rather than the buy side.
For the past 32 weeks (7 months) SINA has traded mostly near the top of the range with 3 spike up rallies up to the $80 demilitarized zone but not once during this period of time has the stock gotten above 80.61 or generated a weekly close above 77.48 in spite of the fact the stock has closed on a weekly closing basis 8 times above 75.00. By the same token, the stock has generated a weekly close as low as 60.79 during the same period of time, meaning that if the seasonal correction in the market does occur the chances are higher that the stock could fall $17 than rally $1 above Friday's close (based on a weekly closing basis).
SINA got down to the 200-day MA on April 11th and it seemed that the line was going to break given that it straddled the line for 6 days in a row without seeing any buying interest pop up. Nonetheless, on April 18th an upgrade was given with an upside target of $110 and that upgrade brought in a rash of new buying interest.
SINA spiked up last week, likely in harmony with the indexes heading strongly higher, and got up to 78.19 on Thursday but did not see any further upside on Friday and closed below the weekly closing resistance at 77.48 with a weekly close at 76.81. The stock closed near the high of the week and further upside above last week's high at 78.18 is likely to be seen, meaning that the probabilities are high once again that on an intra-week basis the stock will get up to or near the $80 level that has been seen on 3 occasions since last September with highs at 80.42, at 80.61 and at 79.90.
This mention on SINA is mostly based on the idea that a seasonal correction will occur and that the resistance at 80.00 will once again hold up. Nonetheless, due to the upgrade given with $110 as the objective, the probability rating is low.
To the downside and as the mention's objective, SINA would have at the very least the 200-day MA, currently at 70.45, as a minimum objective but if broken, the $60 level would then become viable.
This is a low probability trade but with a very good risk/reward ratio.
Sales of SINA above 79.70 and using an 80.75 stop loss and having a minimum objective of $70, would offer a 10-1 risk/reward ratio.
My rating on the trade is a 2.5 (on a scale of 1-5 with 5 being the highest).
|
Updates
|
| Monthly & Yearly Portfolio Results
|
Closed Trades, Open Positions and Stop Loss Changes
|
|
Status of account for 2007: Profit of $9,758 per 100 shares after losses and commissions were subtracted. Status of account for 2017, as of 2/1 Loss of $4589 using 100 shares per mention (after commissions & losses) Closed out profitable trades for April per 100 shares per mention (after commission)
FSLR (long) $406
Closed positions with increase in equity above last months close minus commissions.
CLB (long) $24 Total Profit for March, per 100 shares and after commissions $677 Closed out losing trades for April per 100 shares of each mention (including commission)
AAPL (short) $12
CAT (short) $480 NFLX (short) $210 LVS (short) $76 SINA (short) $104 Closed positions with decrease in equity below last months close plus commissions. CCJ (long) $48 Total Loss for March, per 100 shares, including commissions $930 Open positions in profit per 100 shares per mention as of 4/30
GE (short) $96
Open positions with increase in equity above last months close.
FSLR (long) $980 XON (long) $102 Total $1178 Open positions in loss per 100 shares per mention as of 4/30
X (long) $969
Open positions with decrease in equity below last months close.
CNX (long) $480 Total $4308 Status of trades for month of April per 100 shares on each mention after losses and commission subtractions.
Loss of $3383
Status of account/portfolio for 2017, as of 4/30Loss of $7972 using 100 shares traded per mention.
ARNA bulls were successful in closing the gap at 1.42 that was made after the dilution announcement with the additional shares being sold. Closure of the gap suggests that the bears do not have at this time enough ammunition to make new all-time lows unless some new negative fundamental announcement is made. The stock did close in the lower half of the week's trading range, suggesting that further downside below last week's low at 1.32 will be seen this week. Nonetheless, if that occurs the probabilities favor it being the required chart retest of the 1.20 low, which is also now a double bottom on the intra-week chart. Minor intra-week resistance is found at 1.42, a bit stronger between 1.48 and 1.50 and on a daily closing basis at 1.55. A daily close above 1.60 would now give a strong buy signal. Support is found at 1.30, at 1.26 and strong at 1.20/1.21. Probabilities favor a bottom building week with no particular direction.
CLF generated a negative reversal week after the company reported lower than expected earnings. The stock made a new 5-month low and in the process closed the gap that was created in November at 6.33 after a positive earnings report. The stock closed slightly in the lower half of the week's trading range, suggesting a higher chance of going below last week's low at 6.22 than above last week's high at 7.39. Nonetheless, the bears were in control after the earnings report came out and yet the bulls were able to generate a 13% rally the day after, meaning that there is decent buying interest being seen in spite of the negative report. The rally on Thursday seen after the low at 6.22 was made and the rally on Friday above Thursday's high, suggests the 6.22 low may be a spike low. If that is the case and the bears are unable to generate new selling interest below 6.22 this week, the traders will consider 6.22 to be a major low. Last week's high at 7.39 and low at 6.22 are now both short-term pivotal. A rally above 7.39 would generate a mini buy signal that at this time and after the earnings report would be indicative. A drop below 6.22 would open the door for further downside with perhaps even a 4.96 objective. Probabilities slightly favor the bulls this week. CNX generated a negative reversal week, having gone above last week's high and below last week's low and closing in the red on Friday. The stock closed near the lows of the week and further downside below last week's low at 15.06 is expected to be seen this week. On a small positive note, the bears were unable to generate a new 10-month weekly closing low below 15.10 in spite of having traded at or below that level for the last 90 minutes of trading on Friday. As such, it is evident that the bears need some help this week to generate a break of the decent support found here between 14.75 and 15.10. Minor resistance is found at 15.99 and minor to perhaps decent but certainly short-term pivotal is found at 16.41. To the downside, minor to decent support is found at the $15 demilitarized zone. Below 14.70, there is no support until 13.70 is reached. Further and a bit stronger support is found at 12.62. The chart suggests the support at 14.75 will be broken this week and given that the chart gives no compelling reason to expect a rally of consequence if this support is broken, consideration should be given to using a 14.65 stop loss. Probabilities favor the bears. ENG generated a negative reversal week, having gone above the previous week's high and then closing in the red and near the lows of the week, suggesting further downside below last week's low at 1.57 will be seen this week. It is important to note that the red weekly close suggests that a successful retest of the break of the 200-week MA was accomplished by the bears and if that is the case, the recent low at 1.45 will be broken. Intra-week support is minor at 1.45 and decent between 1.28 and 1.31. Pivotal resistance is found at last week's high at 1.79, which includes the 200-day MA, currently at 1.77. Probabilities favor the bears this week. Nonetheless, the chart suggests that a drop down to 1.28/1.31 will occur and then a rally up to somewhere between 2.50 and 2.70 to test the 3.10 high will happen. This scenario to play out over the next 3-6 weeks. FCEL made a new all-time low this past week, having dropped 37% from 1.60 to 1.00 based on an announcement from the company of a secondary stock offering of 1.2 million shares at a $1.28 price. The company is back trading around the 1.00 level that was being seen when a 12-1 reverse split was announced in October of last year, meaning that the stock split did nothing but hurt the stock as it now is worth 12 times less than it was worth a year ago. If the stock starts trading below $1 again, the same problem seen last year of having to leave the NASDAQ due to trading below $1 will happen again. The additional stock sale will be done by May 3rd (Wednesday) and if the bulls are able to keep the stock above 1.00 and get above the offering price at 1.28, some new buying interest may be seen. For the next 2 days though, the stock will continue to be under sell pressure. FSLR generated a spike up week after the bears failed to take the stock below the previous week's low in spite of having closed near the week's low. The stock closed near the highs of the week, suggesting further upside above last week's high at 30.50 will be seen this week. A buy signal was given when the stock closed on Wednesday above the most recent daily closing high at 28.10, meaning that until next Tuesday when the earnings reports comes out the bears will not be in full control as they have been since the downgrade occurred in February. A failure signal may have been given on Friday when the stock closed above the 4-year low weekly close at 29.21. Nonetheless, the failure signal will need to be confirmed with another close above 29.21 next Friday and that means "after the earnings report comes out". Minor but possibly short-term pivotal support is found at 28.60 that if broken before Wednesday would weaken the chart, if broken on Wednesday or any day thereafter would suggest the downtrend would likely resume. To the upside, there is minor resistance at 31.47 but under the present scenario, a break of that resistance could be indicative. Probabilities favor the bulls but with an earnings reports due out, it will depend on the fundamental picture. GE made a new 5-month low and closed near the lows of the week, suggesting further downside below last week's low at 28.93 will be seen this week. The new multi-week low also means that the bottom of the inverted flag formation was broken, giving a 27.37 objective to be reached within 8 weeks. The 200-week MA, currently at 27.60, has now become a magnet though there is one decent intra-week support at 28.19 that the bears will need to break to make reaching the line viable. Resistance will now be found at the bottom of the inverted flag at 29.25. Probabilities favor the bears. X generated a negative reversal week and a spike down move after the earnings report came in much worse than expected. The stock closed near the lows of the week and further downside below last week's low at 21.85 is expected to be seen this week. The move down was a clear signal of weakness, especially given that a failure signal was given when the stock closed below a previous spike high weekly close at 27.49 as well as closing below the 200-week MA, currently at 23.45. The stock is likely to get down to the $20 level this week that has been support since 2011, meaning that further downside is likely limited at this point. In fact, there is quite a bit of minor to decent weekly close support between 21.80 and 22.24 that might hold on a weekly closing basis next Friday, especially considering that even with a bad earnings report the Trump administration is strongly supporting the use of U.S. Steel for infrastructure spending. On an intra-week basis though, the stock has 2 possible downside objectives at 20.13 and at 18.82. Due to the support given by Trump, it is likely that the bears will be unable to get the stock below the $20 demilitarized zone. Resistance will now be decent at 27.64. The chart suggests the stock will get into a $20-$27 trading range for the next 4-8 weeks. Any rallies back up above $27 should be considered for liquidation. XON made a new 6 week high and gave a buy signal on the daily chart, having generated a confirmed close above 20.23 this past week. Nonetheless and using the weekly chart, the rally was not a clear signal that further upside will be seen, given that the stock closed slightly in the lower half of the week's trading range, suggesting a higher probability of going below last week's low at 20.20 and above last week's high at 21.75. If the stock does go below last week's low this week it will be disappointing and likely bring in new selling interest. The traders will likely be watching the earnings report of ZIOP that comes out Monday after the close as that is a company in the same industry and closely tied to what XON does and likely to influence them on further direction. Intra-week support is found between 20.20 and 20.39 and then nothing until 18.74. Resistance is found at 21.59 and short-term pivotal at 21.75. Probabilities slightly favor the bulls but it does seem to be a pivotal week, at least for the short-term.
|
1) FCEL - Averaged long at 2.2275 (4 mentions). No stop loss at present. Stock closed on Friday at .095 (new price 1.15). 2) GE - Shorted at 29.85. Stop loss at 30.64. Stock closed on Friday at 28.99. 3) ENG - Averaged long at 1.865 (4 mentions). No stop loss at present. Stock closed on Friday at 1.57. 4) ARNA - Averaged long at 3.725 (4 mentions). No stop loss at present. Stock closed on Friday at 1.34. 5) CAT - Covered shorts at 102.23. Loss on the trade of $480 per 100 shares plus commissions. 6) FSLR - Averaged long at 37.52 (3 mentions). No stop loss at present. Stock closed on Friday at 29.55. 7) SINA - Shorted at 73.45. Covered shorts at 74.35. Loss on the trade of $100 per 100 shares plus commissions. 8) CLF - Averaged long at 8.96 (3 mentions). No stop loss at present. Stock closed on Friday at 6.72. 9) CNX - Averaged long at 19.17 (3 mentions). Stop loss now at 14.66. Stock closed on Friday at 15.18. 10) X - Averaged long at 33.42 (3 mentions). No stop loss at present. Stock closed on Friday at 22.32. 11) FSLR - Liquidated at 29.87. Purchased at 25.67. Profit on the trade of $420 per 100 shares minus commissions. 12) XON - Purchased at 18.57. Stop loss now at 18.31. Stock closed on Friday at 20.84. 13) LVS - Shorted at 57.84. Covered shorts at 58.46. Loss on the trade of $62 per 100 shares plus commissions. 14) X - Purchased at 23.09. Liquidated at 22.81. Loss on the trade of $28 per 100 shares plus commissions.
Previous Newsletters
|
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. |
|
|
|