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Issue #151 
November 29, 2009 | Newsletter
The newsletter with chart analysis for stocks and stock indexes |
Stock Indexes Analysis/Evaluation
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| News & Action Suggests Top Formed!
DOW Friday close at 10310
The DOW had a negative reversal week in which the index made new 14-month highs but then on Friday went below the previous week's low and closed in the red. This is the first negative reversal week seen during the entire 38-week up-trend, and is the strongest indication so far that the bull trend may have found at least a temporary top.
On Monday, the DOW broke above the previous week's high at 10438 and got up as high at 10495, giving indications that further upside would likely be seen due to the lack of resistance at these levels. Nonetheless, after having fulfilled the objective of the inverted Head & Shoulders formation at 10461, set back on the week of July 20th when the neckline was broken, the index began to falter and no further upside was generated thereafter.
On a weekly closing basis, there is minor resistance at the previous week's close at 10318. Above that level there is no resistance of consequence until the 200-week MA is reach currently up at 11200. On a daily closing basis, resistance is very strong between 10438 and 10464. On a weekly closing basis, decent support is now found at the 100-week MA currently at 10000. At that level, there is also a previous weekly high close at 9996 that is likely to add strength to that support. Below that, there is no resistance until decent resistance is found at 9713. On a daily closing basis, there is minor support at 10197 and then nothing until the 50-day MA currently at 10,000.
The DOW has now given the first "strong" chart indication that the 9-month up-trend may be over. Unfortunately, the indication was only given when a negative piece of fundamental news (Dubai Bank problems) was released on Thursday morning. The news caused the market to open substantially lower on Friday. It is evident that if the news does not pan out as negatively as first thought that the index may resume the up-trend. Nonetheless, if the negative chart action is confirmed this coming week, further downside can be expected for December.
Overall, though, drops down to the 10,000 level are highly likely as a retest of the 100-week MA, as well as of the major psychological support at that level make sense, even in a bull market scenario. It must also be mentioned that the index did see a spike down on Friday with a close in the lower half of the day's trading range. Such a spike will likely generate further downside on Monday.
It must also be mentioned, that Friday's action, though tinted with the negative news, did give some indication that the traders are not looking to be buyers of consequence this coming month. The DOW, after opening substantially lower, was able to generate a rally of over 140 points from the lows (buying dips continues to be seen). Nonetheless, the bulls were unable to hold above the previous week's close at 10318 even though the index was trading above that level just a couple of minutes before the close. Such action, at the end of the day, seems to suggest that the selling is beginning to tip the scales in the favor of the bears.
This coming week further downside should be expected, but the trading range for the week will be affected by the severity of the Dubai Bank problems. A rosy scenario would give the DOW a trading range of 10438 down to 10171. The most probable scenario, though, would give the DOW a trading range of 10341 to 10076.
NASDAQ Friday Close at 2138
The NASDAQ accomplished finalizing many chart scenarios this past week starting by confirming the successful retest of the 200-week MA the previous week. This action was also followed up with a second close below the most recent high weekly close at 2157, stating that the breakout failed to generate any follow through. In addition, the weekly gap between 2118 and 2128 was closed, taking away the possibility of a breakaway/runaway gap formation.
The NASDAQ also failed to mimic the action of the other 2 indexes in making new 14-month highs this past week. Being the index with the strongest and clearest resistance levels of all the indexes, failure to make new highs seems to suggest that the buying in the "general" market has diminished and that traders are now buying only high rated stocks. Such action does not support further upside of consequence.
On a weekly closing basis, resistance is now strong at 2167 and decent at 2157. On a daily closing basis, resistance is strong at 2204, and strong again at 2176. On a weekly closing basis, there is no support until strong support is found at 2045/2048. Strong support is also found at the 100-week MA currently at 2000. On a daily closing basis, support is minor to decent at 2146 and then nothing of consequence until strong support is reached at 2045/2048.
The NASDAQ may have left a very ominous Island gap formation this past week having gapped up Monday from 2150 to 2169 and gapped down on Friday from 2170 to 2155. The Island could be a strong sign that the index has exhausted all of its upside momentum and that no further rallies above 2155 will be seen at this time. This is still not confirmed but should the index fail to get above 2155 this coming week and go below Friday's low at 2114, the island gap will become a major resistance level.
The NASDAQ closed at the 50-day MA on Friday, as well as at the low seen the previous week (2137), and that sets up Monday as an important red or green close day on the daily chart. It is evident that any follow through to Friday's weakness will be seen as confirmation that the news that caused the drop is serious and that it will affect the indexes negatively, at least until the new earnings report season in January begins. Any green close on Monday will put the index right back where it was prior to the news and generate some bargain hunting, as has been seen for the last 9 months.
In looking at the weekly chart, it seems highly probable that a drop back down to the major psychological support, as well as 100-week MA, both at 2000 will be seen before the end of the year. With the holiday season upon us, year-end profit taking occurring, and the NASDAQ at major resistance levels, it doesn't seem probable that sufficient buying will be seen to cause the index to go higher and accomplish what it hasn't been able to accomplish for the last 2 months. Keep in mind that on September 23rd the NASDAQ got up to 2168, and now 9 weeks later the index finds itself at 2138. No gain of consequence has been seen in spite of a whole quarter of much better than expected earnings and economic reports. Probabilities favor the downside, for at least the next 5 weeks.
Possible trading range for the week is 2137 to 2048.
S&Poors 500 Friday close at 1091
The SPX confirmed, by a second red close in a row, that the close 2 weeks ago at 1193 was a successful retest of the 100-week MA. Nonetheless, the index was able to maintain itself above the 100-week MA so it cannot yet be said that the index has given any strong indication that it is heading lower.
The SPX did generate a double top on the daily closing chart at 1110/1111 and that could be an ominous sign as the double top was generated several days apart (true sign of a double top). If that double top is confirmed with a sell signal on Monday (a close below 1087), drops in the index are likely to be seen from here on in.
On a weekly closing basis, decent resistance is found at 1093. On a daily closing basis, there is minor resistance at 1099 and strong resistance at 1110/1111. On a weekly closing basis, support is minor at the 100-week MA, currently at 1084. Below that level there is no support of consequence until 1036 is reached. Strong support is also found at 1025. On a daily closing basis, there is minor support at 1087, decent support at 1043/10044, and strong support at 1025/1036.
The SPX tried very hard this past week to mimic the DOW in trying to make a new 14-month high and keeping the up-trend momentum going forward. Nonetheless, when it was all said and done, the index failed to generate any new highs, and in the process gave several signs that the upside may be over. The strongest sign, of course, was the double top built at 1110/1111. In order to go lower, though, the SPX will need to confirm these signs this week with a close below 1087. A close below 1087 is likely to generate an immediate and strong drop down to 1043/1044 because there is no support of consequence in between those two levels. Nonetheless, it must be mentioned that at that level (1036) the 100-day MA is currently located, giving that area added strength.
In looking at the chart from a technical basis (no fundamentals involved), it is possible that one more attempt to get up to the 1100 level (close at 1099) could occur before the index heads lower. Nonetheless, if Friday's intra-day low at 1084 is broken on Monday, that possibility will decrease strongly at this time. A break below 1084 will also be a break of the 100-week MA as well and that would put a lot of sell pressure on the index.
Friday's action was based on negative news and not necessarily on chart factors. Nonetheless, even before the news came out, the index had already established a double top and had given signs that further upside would be difficult to accomplish. Monday is likely to be an important day if for no other reason than the negative news released will have been evaluated by the marketplace over the weekend and the results of that evaluation will be seen in Monday's trading. Nonetheless, the key chart levels are clearly defined now as a break above the recent high at 1114 would be a strong positive, while a break below Friday's low at 1084 a strong negative.
Possible trading range for the coming week is 1092 to 1033
The previous Monday saw the indexes rally strongly to the upside with the DOW making new 14-month highs, the SPX getting up to the previous high and the NASDQ testing decent resistance levels, but not up to the previous high. Nonetheless, when the indexes were unable to generate further upside after Monday's rally they came to a halt, likely due to the holiday week. Nonetheless, on Friday, fears were again renewed of possible banking failures when one of the large banks in Dubai asked that its loan repayment program be extended for 6 months. Those fears generated a strong reaction worldwide causing immediate stock selling to occur.
It is evident by the negative reaction seen to a less-than-dramatic piece of news that the indexes are skating on thin ice and with the end-of-the-year book-squaring that is likely starting in December, it seems difficult to visualize a lot of new buying coming in during the next few weeks.
After such a long up-trend that has not yet seen any type of meaningful correction, the probabilities are high that the indexes will pull back before the end of the year to their respective strong psychological support levels. In the DOW at 10,000, in the SPX at 1000, and in the NASDAQ at 2000.
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Stock Analysis/Evaluation
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CHART Outlooks
The probabilities have now shifted to the downside after this week's action. The indexes, with the exception of the DOW, failed to make new highs and before the negative news that caused the market to fall on Friday, they were already giving notice that further upside would be difficult to accomplish.
Most of the mentions this week are sales. Nonetheless, there is one purchase in a stock that is at a level of support that is important and is not a stock that necessarily follows what the indexes do. Keep in mind, though, that December is not likely to be a major direction month and therefore all mentions will be short-term trades with limited risk as well as limited profit potential.
TRLG (Friday's closing price - 18.59)
Prior to this past week TRLG had already been on a 5-week downtrend after the company reported negative earnings. The stock broke below the 100 and 200-week MA as well as the 200-day MA the previous week and on Friday those breaks were all confirmed, having closed below those lines for 2 weeks in a row. Further downside is expected, especially if the indexes head lower.
On Monday, in spite of the strength in the indexes, the stock closed what had been originally considered a breakaway gap formation and now shows no support below for at least another $2.5 dollars.
On a weekly closing basis, resistance is decent to strong between 19.64 and 19.70. The $20 level must also be considered strong psychological resistance. On a daily closing basis, resistance is minor at 18.97 and strong at the 200-day MA currently at 20.00. On a weekly closing basis, support is minor at the previous week's close at 18.26, minor to decent at 17.00 and at 16.39, and strong at 14.82 to 15.00. On a daily closing basis, support is minor at 18.26 and again at 17.76. Strong support is found between 14.25 and 15.00.
It is evident that some strong problems with the company were uncovered at the last earnings report, as the stock has been on a strong downtrend since, in spite of strength in the market and in other retail companies. Having broken all the important support lines (100 and 200 week and 200 day) the stock finds no level of support it can depend on until the $15 level is reached. With the probabilities that the indexes will be heading lower, there seems to be no reason for the bulls to purchase at these prices.
Under normal circumstances I would expect TRLG to test the breakdown level at $20 one time before continuing lower. Nonetheless, with the negative news seen on Friday, as well as the weakness in the indexes, it seems likely that the stock will head lower first. Nonetheless, the stock did show some minor support at 17.89/17.91 this past week after the breakaway gap between 18.00 and 18.39 was filled. The stock did rally late Friday to close near the highs of the day and if the indexes do not respond negatively on Monday, it is still possible to see a rally up to $20 where the stock would be considered a strong sell. Nonetheless, on Wednesday, the stock generated a spike high at 19.26 than can be used as a stop loss point if the indexes are not recovering on Monday.
Sales of TRLG between Friday's closing price of 18.59 and up to 18.97 and using a stop loss at 19.36 and having an objective of 15.02 will offer a risk/reward ratio of 5-1. If stopped out, the stock could again be re-sold at 19.97 with a stop at 20.62 and with the same objective.
My rating on the trade is a 4.00 (on a scale of 1-5 with 5 being the highest probability).
TRA (Friday's closing price - 38.97)
TRA closed at a major resistance level 2 weeks ago ($40) when it closed at 40.06. The resistance at that level is both psychological as well as from 2 major previous weekly low closes from April and May 2008. The resistance was confirmed on Friday when the stock closed in the red.
In addition, with the rally up to 40.37, the stock has corrected 61.8% (major Fibonacci number) from the drop seen last year. Having two important technical levels reached, as well as the indexes starting to correct, has strongly increased the probabilities of the stock heading lower from here.
On a weekly closing basis, resistance is strong at 40.03/40.06. On a daily closing basis, resistance is minor at 39.56 and strong at 40.06. On a weekly closing basis, support is decent to strong at 35.85. Below that level there is nothing of consequence until the 100-week MA is reached at 33.60. On a daily closing basis, there is no support of consequence until the 50-day MA is reached down at 35.85. Below that level there is minor support at 35.20 and at 34.48. Stronger support is found at the 100-day MA currently at 33.20.
TRA has enjoyed the benefits of the lower dollar as well as the rally in commodities. Nonetheless, there are reasons to believe that for the next 6 weeks, all markets will have some kind of pause, if at least temporary, and that corrections to the strong up-trend seen recently could occur.
TRA does not show any support close by that could put a brake if the stock starts heading lower. There is no support of consequence until 34.87-35.03 is reached. It must also be stated that the stock did get up to the 40.06 level on a spike high, and yet the spike failed to generate any follow through. With Friday's drop down to 38.11, most of the spike high has been diffused (spike started at 37.50), and that likely means the reasons for the spike high have disappeared.
Sales of TRA between Friday's closing price of 38.97 and 39.52 and using a stop loss at 40.47 and having an objective of 33.85 offers 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 probability).
COGT (Friday's closing price - 8.65)
COGT is a tough company to figure out as the positives are very strong and yet the stock has been in a strong downtrend for the last 12 months and on Friday came within 6 points of its all-time low. The company has a large insider ownership with 46% of the ownership being the company president. In addition, the company is sitting with $600 million in cash and has no debt. Under normal circumstances this would be reason to buy unabatedly. On the negative side, though, much of the company's income is tied in to defense contracts with the government and with the Democrats in office, the prospect for increase in sales is dim.
Nonetheless, with no strong reasons to think the company is heading much lower and having reached the previous all-time low on Friday, and bouncing off of that low strongly, suggests the stock may be a good purchase here, if at least because the risk is clearly defined.
On a weekly closing basis, resistance is decent to strong between 9.94 and 10.03. Further resistance will be found at the 100-week MA currently at 10.71. On a daily closing basis, minor resistance is found at 9.13 and a bit stronger at 9.25. Stronger resistance is found between 10.03 and 10.16. On a weekly closing basis, support is strong at 8.57. No support is found below that level. On a daily closing basis, support is very strong between 8.26 and 8.35.
COGT got down near the all-time low made in March 2008 at 7.88 when it dropped down to 7.96 on Friday. Nonetheless, strong buying came in and generated an intra-day rally, which took the stock up to 8.82 and a close at 8.65 which was 8 points above the all-time weekly low close at 8.57. It must be mentioned that there was no news on Friday to have caused the drop in price, other than the fact the stock has been on a downtrend and Friday's lower opening in the indexes could have generated the spike low.
Nonetheless, it must be also be mentioned that since the stock started trading in 2004, it has not been a stock that has mirrored the indexes very much rallying often when the indexes are down and dropping when they are up. As such, even if the indexes are heading lower, it does not mean COGT will.
The purchase of COGT is mainly based on the fact the company is near its all-time low but doesn't have the negative fundamentals to suggest the stock will head lower. In addition, if the stock is going to bounce off of the all-time lows, rallies up to the psychological $10 level are highly likely. On an intra-day basis, resistance is strong at 10.70 and 10.87 (100-day MA and high seen in September).
Purchases of COGT between 8.25 and 8.36 and using a stop loss at 7.78 on an intra-day basis, and having an objective of 10.64 offers a risk/reward ratio of 4-1.
My rating on the trade is a 3.5 (on a scale of 1-5 with 5 being the highest probability).
OSK (Friday's closing price - 38.35)
OSK has been on a major run since March when the stock got down to the 4.74 level. The stock has shown close to a 1000% profit during this time. Nonetheless, a couple of weeks ago the stock got up to a strong level of resistance from Apr-Jun of 2008 at the $40 level and has begun to back off. Having closed at 39.69 2 weeks ago and now having had 2 weekly closes below that level means the resistance at $40 has been tested successfully.
For the past 3 weeks the stock has been trading slightly above the 200-week MA but if the indexes are heading lower it seems unlikely OSK will be able to keep itself above that level any further. The last 2 weeks the stock has closed exactly at that line, and any red close this coming Friday will mean the stock has failed to follow through on the breakout.
On a weekly closing basis, resistance is strong between 39.69 and 40.41. Above that level there is no resistance of consequence until the $50 level is reached. On a daily closing basis, resistance is decent at 39.08, stronger at 39.87, and very strong at 40.25. On a weekly closing basis, support is decent at 35.37 and then nothing of consequence until the most recent low close of consequence at 31.26. On a daily closing basis, support is minor to decent at 37.48 and then nothing until the 50-day MA is reached currently down at 34.20. Strong support is found at the 100-day MA currently at 31.20.
OSK has outperformed even the most rosy scenario but now finds itself at a resistance level that is strong. In addition, this is a stock that does move in conjunction with the indexes and if they are heading lower, the stock will likely do the same.
On the daily chart, OSK has already tested the 40.25 daily closing high successfully on 2 occasions with closes at 39.87 and 39.08. No sell signal has yet been given, as a close below the 37.48 level is needed for that to happen. Nonetheless, with the probabilities favoring the indexes heading lower, the 2 successful retests of the high suggests that now is a good time to short the stock.
In looking at the downside, OSK does show decent support from 16 months ago at the $35 level. Nonetheless, on a recent note, there is very little support on the daily chart until the 20-week and 100-day MA is reached, currently both at 31.20.
With the 2 successful retests of the high and the indexes looking to head lower immediately, the most recent intra-day high at 39.47 can be used as a stop loss, as any upside from here would likely be positive. Objective is a minimum drop down to $35 but there is a strong possibility that a drop down to the mid $31 could be seen.
Sales of OSK between 38.60 and 38.99 and using a stop loss at 39.57 and having an objective of 34.84 will offer a risk/reward ratio of 4-1.
My rating on the trade is a 3.75 (on a scale of 1-5 with 5 being the highest probability).
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Updates
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| Updates on Held Stocks
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Closed Trades, Open Positions and Stop Loss Changes
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| NUAN received a better than expected earnings report that generated a rally up to the strong resistance level at $15. On Friday, with the negative news the indexes received, the stock got down to what is now strong support at 14.25. From that level, buying come in and the stock closed near the highs of the day and at the psychological resistance at 15.00. The stock still show an open gap between 15.22 and 15.37 that was not closed this past week and it is likely that gap will be closed this week. Nonetheless, if the indexes fail to go higher, it is difficult to imagine the stock holding on to its gains. If that happens, drops back down to the $14 level are probable. On a daily closing basis, strong resistance is found between 15.65 and 15.74, and on a weekly closing basis, strong resistance is found at 15.27. If the indexes head lower this week, probable trading range for the next 6-weeks would be 14.00 to 15.50. GPS has traded in a sideways fashion for the last 10 weeks without accomplishing anything of consequence. Nonetheless, during this period of time the stock seems to have built a strong top formation that will be close to impossible to break without the help of the indexes. If the indexes are heading lower (probable), the stock is likely to get down near the bottom of this sideways trading range at $20. At this time, any daily close below 21.81 or above 22.55 will likely be short-term significant. It is likely this coming week will be decisive. WDC had an inside week and was able to close higher than the previous week, thus stopping temporarily the weakness shown after the failure to make new 3-year highs. Nonetheless, on the daily chart the stock tested the strong intra-day resistance, prior to the new highs being made, at 38.55 (got up to 38.50 this week). Having generated that successful retest of the highs the stock is now ready to head lower to test the supports below. The first support of consequence is at 36.63 (37.05 on a daily closing basis). Should that level get broken there is no support whatsoever until 34.55 (35.19 on a daily closing basis) is reached. Any close above 38.46 would now be considered short-term bullish. Probable trading range for the next 6 weeks, if the indexes are weak, is 37.70 to 33.51. SKX had a non-eventful week holding itself above the daily and weekly close support at 21.82 and below the daily and weekly close resistance at 23.75. It is evident the stock will be reacting to whatever the indexes decide to do, at least for the next 6 weeks. The weekly chart does suggest that the probabilities are high that the stock will drop down to at least the 200-week MA currently at 21.00. It is likely that the 200-week MA will be a deciding factor next year after the holiday season is over. For now, though, drops to that level are probable and should be considered as a level to take profits on the short positions. LINE had an uneventful week keeping itself below the strong weekly close resistance at 24.99 and above the decent support at 24.06. A break of either of those levels should generate at least a $1.50 move in that direction. It is likely the stock will follow whatever the indexes decide to do. IR confirmed, with a second red close, that the close 2 weeks ago at 36.86 was a successful retest of the 200-week MA. Nonetheless, the stock was able to close above the decent weekly close support at 34.73, and therefore no sell signal was given. Any daily close below 34.46 will now generate further downside with the objective of 31.20. By the same token, any close above 37.23 would now be a positive signal and a likely rally up to $40. The chart is leaning toward the downside. STP closed the breakaway gap it had up at 13.79 on Friday but also left a gap between 14.75 and 14.48 in the process. Closure of the gap does eliminate the main bullish factor in the chart and puts the stock back into a base building mode. Intra-day drops down to 12.35/12.79 are now possible. Nonetheless, on a daily closing basis, strong support is found at 13.86. The stock did rally on Friday after the gap was closed and it is possible the stock will be up on Monday closing the gap it left on Friday. The 200-day MA is currently at 14.40 and that will be a strong pivot point for the stock on Monday. This is not a stock that necessarily follows the indexes, as such, it needs to be evaluated on its own merits. At this time, though, the stock has lost its bullish outlook and only if the stock is able to close the gap up at 14.75 will the stock get some of its upward momentum back. AXP closed slightly lower than last week giving notice that the weekly close resistance area between 40.40 and 42.19 is starting to take effect on the stock. It is important to note that on the daily chart, the stock has generated 3 closes between 41.57 and 41.72 over the past 2 weeks. Such action seems to suggest the buyers are having problems generating further upside. On Friday the stock closed below the most recent low daily close at 40.93 giving a possible sell signal if the stock closes in the red on Monday. An intra-day break below the most recent low at 40.43 should generate further selling. Drops down to the 50-day MA, currently at 36.40 would be probable if that should happen. By the same token, any rally above the recent high at 42.20 would likely generate further upside. AMZN continued its recent up-trend with a new all-time daily close on Wednesday at 134.03. Nonetheless, on an intra-day basis, the stock shows a successful retest of the previous intra-day high at 134.56 when the stock rallied up to 134.33 this past week. It must also be mentioned that on Friday, the break above the previous all-time high at 132.97 was negated when the stock closed below that level on Friday. As such, confirmation of the failure to follow through would be given with another close on Monday below 132.97. The stock did generate a spike on Friday but the drop was aggressively bought causing the stock to close in the upper half of the day's range. Decent support is found at last Friday's low at 127.41. A break of that support will likely take the stock back down to the runaway gap area at 122.67. By the same token a rally above Wednesday's high at 134.33 will likely generate another new all-time high. This stock will likely follow whatever the indexes decide to do. HPQ, by closing in the red on Friday, showed that the previous week's close at 50.04 was a successful retest of that very important psychological resistance at $50. In addition, the 50.04 weekly close (51.43 intra-day) must also be considered a successful retest of the all time high seen in Oct07 at 52.47 (53.48 intra-day). The stock had a strongly negative day on Friday having gapped down between 49.96 and 49.37 and below a previous intra-day support of some consequence at 49.32. The stock was unable to get back above that support level all day and did generate a sell signal when it closed below the most recent daily low close support at 49.70. Having tested the previous high successfully on Monday, the stock is now poised for further downside. Resistance should now be strong at 50.00 and also at Friday's high at 49.37. The stock does show some support at the 50-day MA currently at 48.20, but should that level break drops down to the 47.00 level will be probable. It is possible that the gap generated on Friday is a breakaway gap but it is still too soon to tell. The direction of the indexes on Monday will probably signal whether the gap will be closed or not. Either way, the stock seems poised for lower prices during the next few weeks.
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1) AMZN - Shorted at 132.50. Covered short at 132.62. Loss on the trade of $12 per 100 shares plus commissions.
2) AMTD - Shorted at 21.12. Covered short at 19.91. Profit on the trade of $121 per 100 shares minus commissions.
3) SKX - Averaged short at 23.70 (2 mentions). Stop loss now at 24.92. Stock closed on Friday at 22.48.
4) PMCS - Covered Short at 8.07. Shorted at 9.78. Profit on the trade of $171 per 100 shares minus commissions.
5) GPS - Averaged short at 19.305 (3 mentions). Stop loss now at 23.25. Stock closed on Friday at 22.03.
6) AMZN - Shorted at 134.10. Stop loss at 134.66. Stock closed on Friday at 131.74.
7) AXP - Shorted at 41.85. Stop loss at 42.60. Stock closed on Friday at 40.84.
8) NUAN - Covered short at 14.66. Shorted at 14.13. Loss on the trade of $53 per 100 shares plus commissions.
9) HPQ - Shorted at 50.88. Stop loss at 51.12. Stock closed on Friday at 49.07.
10) IR - Shorted at 35.77. Stop loss at 37.10. Stock closed on Friday at 35.24.
11) LINE - Shorted at 25.12. Stop loss now at 25.09. Stock closed on Friday at 24.85.
12) WDC - Averaged short at 37.13 (3 mentions). Stop loss now at 38.60. Stock closed on Friday at 37.50.
13) STP - Averaged long at 15.235. No stop loss at present. Stock closed on Friday at 14.18.
14) COO - Liquidated at 32.15. Purchased at 31.85. Profit on the trade of $30 per 100 shares minus commissions.
15) DD - Liquidated at 35.08. Purchased at 34.98. Profit on the trade of $10 per 100 shares minus commissions.
16) BEXP - Liquidated at 10.35. Purchased at 10.96. Loss on the trade of $61 per 100 shares plus commissions.
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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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