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Issue #163 
February 21, 2010 | Newsletter
The newsletter with chart analysis for stocks and stock indexes |
Stock Indexes Analysis/Evaluation
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| Indexes Rallying to Test Recent Highs!
DOW Friday closing price - 10402
The DOW was able to generate upside momentum this past week after the bears failed to push the index back down to the 10000 level in spite of getting help from negative fundamental news. Most of the news this past week was on the negative side with the dollar getting stronger, the financial problems the Greek government is having continuing unsolved, the Fed raising the Discount Rate, and the PPI number coming in higher than anticipated.
It is evident that the DOW, having tested the 100-week MA successfully, is receiving new buying from the bulls attempting to renew the uptrend. It is also possible that the bears are not being aggressive sellers as a successful retest of the highs would allow them to be a bit more aggressive generating a new move down, while also limiting their risk to the recent 17-month highs. As such, this rally could be helping both sides accomplish some of what they seek.
On a weekly closing basis, resistance is minor at 10472 and 10520. Strong resistance is seen at the 17-month high weekly close at 10618. On a daily closing basis, resistance is minor to decent every 20-30 points starting at 10437, then at 10467, 10472, 10501, and at 10549. Strong resistance is found between 10711 and 10725. On a weekly closing basis, support is decent to strong at 10012, decent at the 100-week MA, currently at 9790, and minor to decent at 9713. On a daily closing basis, support is minor to decent at the 50-day MA, currently at 10190, and a bit stronger at 10067. Strong support is found at the most recently low daily close at 9908.
Having gotten above a decent resistance level at 10285/10315 on Thursday, and confirming the mini breakout on Friday, in spite of negative news (Fed raising Discount Rate), it is likely that further upside this coming week will be seen. The objective is likely to be the highs seen between November 15th and December 23rd between 10438 and 10515. That level must be considered strong resistance due to is expanded time frame (5 weeks) that the index was unable to get above that area. In addition, this recent rally has been accomplished with very low volume, which means there is not much strength to it. As such, getting above that resistance area will be very difficult.
Much of the anticipation of the rally is based on what happened in the recovery period from the last recession back in 2004 when the DOW generated a high of 10754 in February and then got into a 6-month correction phase. After the initial drop down to 10007, the index rallied up to 10574 and then proceeded to drop again and go below the low of the first drop. The index had a total of 3 peaks and 4 valleys, with each peak being lower than the previous high and each valley being lower than the previous low (definition of a down-trend). This action continued for a total 6 months, ultimately reaching the low of the correction in October04 at 9704. It seems possible and even likely that the same type of action will be seen this time.
It is therefore likely that the DOW will once again show some strength this week with a rally up to at least 10438 or as high at 10580, with the probable high being somewhere between 10500 and 10515. Having closed on Friday at 10402, the upside then is likely limited to no more than 100-180 points. It must be mentioned again that the volume has been at least 20-25% stronger on down days than up days since the top was reached up at 10730.
From a fundamental basis, it is also evident that the Fed is now returning to normalcy having raised the Discount Rate this past week. Return to normalcy likely means they are no longer interested in "bending backward" to help the market recover from the recession. This will take away many of the incentives that investors have been counting on to generate good profit margins in companies. As such, the market has now "lost the inexorable uptrend momentum" that had been seen during the Mch09 to Jan10 period, and is back to peaks and valleys trading.
In 2004, the rally back up to test the highs was swift, having taken only 2 weeks to accomplish. The second week of the rally, the index saw higher highs than the previous week but in the end closed lower than the previous week's close at 10471 (closed at 10442). Next week will be the second week of this rally and therefore it is probable that higher intra-week highs will be seen but a lower close than 10402 will occur next Friday. Though the time frame could be next week or at worst the week after, it is unlikely the DOW will go more than 100-180 points higher from Friday's close.
The economic calendar this week does have some important numbers coming out late in the week. Nonetheless, there is nothing at all for Monday and little for Tuesday. As such, it can be expected the DOW will show strength at the beginning of the week.
NASDAQ Friday closing price - 2244
The NASDAQ had a strong week having broken and closed above several decent resistance levels, with the 200-week MA at 2210 being the strongest. It is evident the index is heading higher in an attempt to test the 17-month highs made 3 weeks ago at 2326. There is little to stop the index intra-week from getting up to at least the 2295/2318 level, but on a weekly closing basis, the index does have decent resistance between 2239 and 2274.
The NASDAQ is likely to be the strongest index this coming week as there is no previous level of resistance from Nov/Dec, as the DOW and the SPX show. As such, the bulls are likely to concentrate their efforts in this index as there is no level close by where selling is likely to appear.
On a weekly closing basis, decent resistance is found from previous weekly low closes between 2239 and 2256. Above that level there is minor resistance at 2274, minor again at 2286 and major at 2317. On a daily closing basis, resistance is minor at 2261 and a bit stronger at 2274. Above that level, minor resistance is found at 2291 and strong resistance between 2317 and 2320. On a weekly closing basis, resistance is minor at 2239 and decent at 2212 from a previous low close as well as from the 200-week MA. Below that level strong support is found at 2141 and then nothing until strong support at 2045. On a daily closing basis, support is minor at 2200 and decent to strong at 2180. Below that level, support is decent 2147 and decent to strong at 2126. Below that, there is no support until strong support is found between 2045 and 2048.
There are no economic reports due out on Monday and therefore the traders are likely to trade the index technically that day. On an intra-day basis, the NASDAQ has no resistance at all until 2288 is reached. As such, it is possible the index will show a lot of strength on Monday. Generally speaking, Monday's have tended to be strong days, in one direction or the other. Nonetheless, on a daily closing basis, there is some decent resistance at 2274 and that could be the objective for the close on Monday. A close at that level would fulfill most, if not all, of the requirements of a retest of the highs. As such, 2274 must be considered an important daily close resistance.
The 200-week MA at 2210, as well as a previous decent weekly close support at 2212, will continue to be an important pivot point on Friday's. It is likely that even if the NASDAQ shows early strength early in the week, that at some point before the end of the week that the index will see that level. Like with the DOW, it is unlikely that the NASDAQ will have enough strength to literally test the previous highs at 2326. Nonetheless, the possibilities are decent the index could get up to the 2295/2318 level at some point this week, if the stock closes above 2274.
On the downside, the key support level this week will be the 100-day MA, currently at 2180. Any close below that line will likely take away all the upside momentum the index achieved this past week.
The probabilities favor a rally the first part of the week and some weakness, but not enough to break weekly close supports, at the end of the week. Probabilities favor a close in the red, below this weeks close at 2244, on Friday.
SPX Friday closing price - 1109
The SPX gave a mini buy signal closing on Friday above the previous high daily close at 1103. Nonetheless, the index closed just below a previously strong resistance level, seen in Nov/Dec, between 1110 and 1114, leaving questions unanswered regarding further upside this coming week.
On the other side of the coin, though, the SPX did close very near the highs of the day/week and should show some further strength on Monday, thus breaking above the 1114 level which is only 5 points away from Friday's close. If that happens, further upside should be seen attempting to test the 17-month high at 1150.
On a weekly closing basis, resistance is minor at 1126 and strong at 1145. On a daily closing basis, resistance is strong at 1111/1114, decent at 1128 and strong at 1147/1150. On a weekly closing basis, support is minor at 1102 and decent at 1066. On a daily closing basis, support is decent between 1091 and 1093, decent again at 1074 and strong at 1057.
The SPX is in the same quest as all the other indexes to test the 17-month highs at 1150. Even though the index was not able to get above the Nov/Dec resistance area between 1111 and 1114, the index did close on a strong positive note on Friday with the close being very near the days/week high. Such action suggests that further upside will be seen this coming week.
It is important to note that on Bloomberg on Friday, they showed a chart that signaled that the bank stocks in Europe had broken below an important support level and that it is likely the US banks will follow as well shortly. With the Fed raising the Discount rate on Friday, recovery for the banks is likely to be a bit more difficult than it has been during the previous 10 months. With the banking industry playing such an important part in the SPX, it is unlikely that the index will be able to break the February highs.
It is expected the market will be higher at the beginning of the week as the momentum shifted back to the upside last week. A break above the resistance between 1111 and 1114 is likely to generate a rally up to 1126/1128 where further resistance is found. A rally up to that level would be commensurate to the DOW rallying up to 10515 and the NASDAQ up to 2288. Such a rally would be considered a retest of the recent highs.
If the SPX closes below the 100-day MA currently at 1093 as well as below the decent to strong daily close support at 1091, it will be a sign that no further upside will be seen.
This past week the Chinese market was closed due to their New Year. In the past, buying has normally been seen when the market opens up on the Monday following the holiday. With the indexes in the U.S. having shown strength this past week it is highly probable, due to both events, that the Chinese market will open strongly, likely causing some spill-over buying to be seen on Monday. In addition, there is no close-by resistance in the DOW and the NASDAQ and that will fuel the bulls as well.
Nonetheless, the fundamental news is starting to turn slightly to the negative, starting with the Fed raising the Discount Rate as well as inflation starting to show up in the PPI. Such fundamentals do not favor further upside of consequence. In addition, the rally has been on low volume thus showing that the buying has not been strong or committed. As such, after the initial buying spree is over and the retest of the 17-month highs is done, the indexes should begin to fall back and resume the correction that started 4 weeks ago.
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Stock Analysis/Evaluation
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CHART Outlooks
CHART Outlooks
It is likely the indexes are following history, going back to the recovery in 2004 from the 2001/2002 recession. If that is the case, the probabilities favor the market rallying the first part of the week and giving up their gains in the latter part of the week, then getting back into the second leg of the corrective phase.
As such, all mentions this week will be sales. Stocks chosen have strong resistance levels, good risk/reward ratios, and high probability ratings.
SALES
HON - Friday closing price 40.22
HON fell down strongly, starting the second week in January, from a double top that was formed 4 weeks ago at 43.13/43.23. The drop continued until the stock found strong support 2 weeks ago at the 200-day MA at 36.50 with a drop down to 36.68. Since that time the stock has been rallying to retest the 17-month highs, much like what the DOW has been doing.
HON closed above the psychological resistance at $40 on Friday and if the indexes show follow through strength, as expected, the stock should get back up to a previous resistance level up at 41.55.
On a weekly closing basis, Resistance is decent to strong at 40.17 and again at 40.87 and strong at 42.63. On a daily closing basis, resistance is minor at 40.81, decent at 41.31 and strong at 42.85. On a weekly closing basis, support is minor at 37.47 and strong between 35.60 and 35.85. On a daily closing basis, support is minor to decent between 38.64 and 38.91, decent between 36.87 and 36.60, decent again at 35.60 and decent to strong at 35.02.
HON had a spike-type week after breaking above the high of the previous inside week. The rally seen this past week was successful in breaking a couple of previous decent resistance levels, as well as closing near the highs of the day/week and above the $40 psychological resistance. If there is any follow through on Monday (likely), the stock has no resistance until 41.55 is reached. With the momentum the stock has seen in the last 14 trading days, the probabilities of getting up to that level are high.
HON has closed in the green on 8 of the last 9 trading days and is rapidly getting back to an overbought condition. In addition, the stock shows a double top on the intra-day chart between 43.13 and 43.23 that should not be broken unless the indexes are renewing their up-trend (unlikely).
It is evident that the $40 level will be a strong pivot point for the stock, especially now that it is above that level. Nonetheless, if the indexes do get into a second stage correction and break below the recent lows, it is likely that HON will at least go back to test its recent low at 36.68. By the same token, it would not be surprising to see the stock get into a trading range scenario between $35 and $40 for the next 3-6 months.
Sales of HON between 41.40 and 41.84 and using a stop loss at 43.33 and having an objective of $35, will offer a 4-1 risk/reward ratio.
My rating on the trade is a 3.75 (on a scale of 1-5 with 5 being the highest).
WFC - Friday closing price 27.37
Since July of last year WFC has been trading sideways between $25 and $30. Nonetheless, with one minor exception the stock has managed to maintain a positive outlook by staying above the 100-week MA, currently at 26.10, during all this time. In fact, just the previous week the stock got down again to that line with a drop down to 26.37.
Nonetheless, it is evident that WFC has not had any shown an ability to generate a rally of consequence as the $30 has stopped all advances, with the exception of one small incursion above $30 in October. As such, if the indexes are in a longer-term corrective phase, the probabilities increase that the stock will break support and head down to the next level of strong support at $20.
On a weekly closing basis, resistance is minor at 28.43, decent to strong between 28.76 and 28.86, and very strong at 30.02. On a daily closing basis, resistance is minor at 27.39, strong between 28.80 and 29.13, minor at 29.41, and major at 31.38. On a weekly closing basis, support is minor at 26.68, decent to strong at 26.28 (previous low daily close of some consequence as well as 100-week MA) and strong at 25.41. Below that level, there is decent to strong resistance between 22.87 and 23.00, and again at 21.76. On a daily closing basis, there is minor support at the 200-day MA, currently at 26.80, decent support at 26.43 and decent to strong support at 25.32. Below that level, minor to decent support will be found between 22.50 and 23.28.
Financial stocks in general topped out in October and did not participate in a large degree with the December rally seen in the market. Right across the board financial stocks (GS, MS, BAC, etc) are showing chart patterns that suggest that a period of down movement is coming. In addition, just last week it was stated on Bloomberg that the index of financials stocks in Europe has broken an important support line and that it is expected U.S. financials will follow suit.
WFC is showing a possible Head & Shoulders formation with the left shoulder at 29.35, the head at 31.53, and the right shoulder at 29.43. The neckline can be drawn using the June low at 21.57 and the December low at 25.01. The line crosses at the 100-week MA, currently at 26.10. A break of the line would suggest a drop down to 19.43. It is possible that if the indexes rally this week, as expected, that WFC will rally as well. Resistance, on an intra-day basis, is decent at 28.45. A rally up to that level would keep the formation intact as well as retest the most recent high at 29.13.
If the neckline and 100-week MA are broken, support will be found at 25.02, 24.38, 21.57, 20.46, and at 19.89. Nonetheless, supports underneath have not shown the kind of support that the 100-week MA has shown over the last 9 months. As such, any break of that line will put the stock on the defensive. Drops down to the 19.89 are possible if that happens. Nonetheless such a drop will not likely occur fast but over a period of 3-5 months.
Sales of WFC between 28.09 and 28.54 and using a stop loss at 29.66 and having an objective of 19.89 will offer a risk/reward ratio of 5-1.
My rating on the trade is 3.75 (on a scale of 1-5 with 5 being the highest).
OSK Friday Closing Price - 38.80
OSK has moved up close to 1000% over a period of 9 months from a low of 4.74 to the high seen the last week in November at 41.99. Since that time, though, the stock has been showing some topping out action that if confirmed within the next week or two with a successful retest of the highs will likely generate at least a 10-15% correction with a good possibility of it being as much as 20% to 25%.
In addition, OSK has been trading around a strong psychological resistance at $40 and without a resumption of the bull trend in the indexes, it seems unlikely the stock could go higher without a clearly defined and strong correction coming first.
On a weekly closing basis, resistance is minor at 38.67, decent to strong between 39.52 and 40.41, and strong at 41.62. On a daily closing basis, resistance is minor to decent between 39.51 and 39.64, decent to strong between 40.25 and 40.38 and strong at 41.62. On a weekly closing basis, support is minor at 37.03 and decent to strong between 34.81 and 35.37. Below that level, support is minor at 31.26 and decent to strong at 28.68. On a daily closing basis, support is minor at 37.99, decent at 35.98 and decent to strong at 34.81. Below that level there is no support of consequence until 30.41 is reached.
OSK has shown definite signs over the past 2 months that further upside needs positive fundamental news of consequence. Having moved up close to 1000% percent in value, the stock is certainly in need of a good correction before attempting to re-generate further moves up. If the stock rallies and tests the recent high at 41.99 successfully, it is highly likely it will be in at least a trading range between $35 and $ 41 for a couple of months. Nonetheless, should the stock break the $35 support level, drops down to $30 would then become probable.
A drop down to 34.24 was seen 2 weeks ago and since that drop the stock has moved back up to the $40 level where for the last two weeks the stock has been trading. It is likely that if the indexes show some strength this week, that the stock will break above the $40 level and get up to test the recent highs, with a rally up to the 40.49 to 40.74.
It is unlikely that new highs will be made and with at least a drop back to $35, the trade would be worthwhile. Nonetheless, if the indexes are on a 6-month correction, it is possible that OSK will be in one too, and therefore a drop down to $30 could be a good possibility.
Sales of OSK between 40.48 and 40.74 and using a stop loss at 42.09 and having an objective of 35.00, will offer a risk/reward ratio of almost 4-1. Nonetheless, the probabilities of a drop down to the $30 are decent, and if that occurs, the risk/reward ratio would climb up to almost 7-1.
My rating on the trade is a 3.75 (on a scale of 1-5 with 5 being the highest).
CAL - Friday closing price 19.67
CAL, based on a weekly closing basis, has been in a well-defined trading range between 7.28 and 20.86 since April 2008. Recently the stock made a 1-year high with a rally up to 21.58 and now, with the possible help from the indexes, the stock seems to be attempting to rally to test that high. It is unlikely that the stock will break out of the trading range at this time, and therefore the stock seems to be a good short trade on the retest of the high.
CAL is a semi volatile stock that is also tied in to the price of oil. As such, it is prone to strong moves on short notice, but still within support/resistance levels.
On a weekly closing basis, resistance is strong at 20.53 and again at 20.86. On a daily closing basis, resistance is minor to decent at 19.73 and strong between 20.62 and 20.84. On a weekly closing basis, support is decent to strong at 17.38 and then nothing until decent support is found at the 100-week MA, currently at 14.40. Below that, strong support is found at 11.50. On a daily closing basis, support is minor at 18.39 and strong between 17.25 and 17.50. Below that level, support is minor at 16.40 from the 100-day MA currently at that price. Decent to strong support is found at 15.00.
CAL has been more of a trading stock than a trend stock for the last 2 years, with rallies near the top of the trading range being sold and drops down to support being bought. With the stock trading near the recent highs and looking to go slightly higher this week, if the indexes rally, it seems like a good short sale.
CAL also moves quite a bit off of the price of gasoline as that impacts the profit and loss of the company in an important way. With the recent down movement in oil, the stock has seen itself trade near the highs of the 2-year trading range. Nonetheless, it is unlikely that oil prices will fall much more and therefore the upside is limited.
CAL 2 weeks ago got down to a good support level between 17.25 and 17.50 and after a few days where the bears tried to push it lower and failed, the stock shrugged off the selling pressure and began to rally. It is now back up to $20 level and it seems probable this coming week the stock will once again get up above 20.00 and perhaps even up close to 21.00, where the recent high could be tested.
If the stock fails to break the recent highs, the support at 17.25/17.50 will likely be tested again and broken. Drops down to the psychological support at $15 would then be probable. Stock has a breakaway and runaway gap formation at 14.30/14.46 and 15.00/15.25 that would likely be tested.
Sales of CAL between 20.69 and 21.19 and using a stop loss at 21.93 and having an objective of 15.26 will offer a risk/reward ratio of over 4-1.
My rating on the trade is a 4.25 (on a scale of 1-5 with 5 being the highest).
ADDITIONAL SHORT MENTIONS
TRLG between 21.43 and 21.51 with a stop loss at 22.16 and an objective of 15.00. Risk/reward ratio of 9-1. Probability rating of 4.00
NYX between 26.00 and 26.09 with a stop loss at 26.85 and an objective of 19.83. Risk/reward ratio of 7-1. Probability rating of 3.75.
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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 was unable to get above the $15 level this past week in spite of the rally in the indexes. In addition, the stock got up to the 200-day MA at 14.97 and not only failed but generated a spike down day on Friday, closing near the lows of the day. Probabilities do not favor the stock getting above $15 now. If the indexes do rally at the beginning of the week, the stock may attempt to get up near to last week's high but that rally should be used to liquidate longs or go short. Drops down to at least the 14.00 level where the 200-day and 200-week MA's are currently trading should happen. There is also good support at 13.70 where the 100-week MA is currently at, as well as a previous decent intra-day low is found. ELON was able to confirm, having generated a higher high this week than the previous week, that the spike low seen the previous week is in effect a spike low. As such, it is unlikely that the stock will get below 7.75 any more, even if the indexes head lower. This is not a stock that is likely to mirror the indexes and therefore it is likely that for the next few weeks, while the indexes are correcting, that the stock will trade between a low of 7.75 and a high of 9.40. Nonetheless, if the indexes do rally at the beginning of the week and the stock finds itself near the 9.40 level, profits should be taken and the stock re-bought on a dip back down near 7.75. GIGM is a Chinese stock that basically treaded water this past week while the Chinese Market was closed. The stock has not been able to close above a minor, but likely indicative, daily close at 3.06. Support continues to be strong down at 2.70. The stock, if heading higher soon, should not break below 2.88 any more. With the Chinese market opening up this week, the stock should give some signals as to what it plans to do. No other comment possible at this time. JRCC gapped up this week from 16.87 to 17.11 at what can be considered a valid gap area, as the 200-week MA is currently at that price. The stock did rally up to the 50-week MA, currently at 17.90 (high of the week). As such, this coming week is very important to the stock as any break above 17.90 or a drop below 17.11 will likely generate further movement in that direction. If the stock gets above 17.90, rallies up to the 200-day MA at 18.90 or the 100-day MA at 19.30 will likely occur before any correction happens. Closure of the gap at 16.87 will likely cause the stock to go back down to 15.02. It must be mentioned, though, that if the stock gaps up again on Monday, above 17.90, the chart will show a breakaway and a runaway gap formation that could signal much further upside, even if the indexes head lower at the end of next week. As such, this coming week is likely very important for the stock. A second gap on Monday should be bought using 17.90 as a stop loss for all positions. If no gap occurs, a stop loss should be placed at 16.88. In addition, if no gap is generated but the stock does rally up to 18.90-19.30, profits should be taken. PCX is another stock, just like JRCC that generated a "valid" gap this past week above the 50-day MA (16.07-16.25). Another gap on Monday would be considered a runaway gap if it happens, giving the bulls strong ammunition with which to run up the value of the stock. The gap at 16.07-16.25 was subsequently tested successfully and the stock closed on the highs of the week on Friday, thus giving notice that further upside this week is likely. The stock does show a series of very minor resistances above starting at 17.24, then at 17.60 and again at 18.21. Nonetheless, the resistances are minor and should get easily broken as the stock attempts to close the gap between 19.35 and 20.08. If the stock gaps up on Monday, it could continue on upward above the 20.08 area and testing the recent highs. Nonetheless, if no gap occurs, consideration should be given to taking profits somewhere between 19.30 and 20.10. Stop loss should presently be at 15.21 but could be raised to 16.08 as much is dependent on that gap not getting closed. . TRA received a buyout bid this past week for $41.10 per share. As such, the stock is now trading up at that price. It is impossible at this time to give you any chart suggestions as the stock is presently working off of that bid and nothing else. Nonetheless, any break below $40 would be considered a negative and positions should be liquidated if that happens. On the positive side, the high seen in December was 43.13 and if that high gets taken out, it is likely the stock is heading up to the $50 area. At this moment, though, no technical or chart trading is happening so chart comments are useless. VALE also gapped up this past week from 27.02 to 27.54 above the 100-day MA, making this also a valid gap. Nonetheless, just like with JRCC and PCX, the stock needs another gap to occur in order to stimulate strong further buying. If no gap occurs on Monday, rallies up to the 29.73 to 30.79 level should be used to liquidate the long positions. Stops should presently be at 27.03. WMT rallied in anticipation of a positive earnings reports but then gave back all of its gains when the report came out with lower guidance than expected. The stock did leave a gap open on the way down between 53.65 and 53.58 and that gap should be closed. After the initial selling after the earnings report, the stock was able to hold the support at 53.00 and rally to go above Thursday's high on Friday. Such action suggests that no further selling will come based on the report itself. The stock continues to be in the bullish weekly flag formation and the upside continues to be the probable direction. The stock was upgraded recently by GS and with the positive chart formation still in place, it is expected the stock will soon start moving back higher. Keep in mind this stock often goes against the indexes and therefore if the indexes are re-starting their corrective phase, it could actually be a positive for the stock. Any move above 54.25 will likely thrust the stock to test the strong resistance at 55.00. By the same token, any break below 52.30/52.50 will be strongly negative.
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1) JRCC - Purchased at 15.00. Stop loss now at 16.67. Stock closed on Friday at 17.71.
2) GIGM - Purchased at 2.87. Stop loss now at 2.65. Stock closed on Friday at 3.01.
3) PCX - Purchased at 16.50. Averaged long at 15.575 (2 mentions). Stop loss now at 16.08. Stock closed on Friday at 17.27.
4) WMT - Averaged long at 53.325 (3 mentions). Stop loss is at 52.06. Stock closed on Friday at 53.49.
5) ELON - Purchased at 8.31. Stop loss now at 7.65. Stock closed on Friday at 8.39.
6) VALE - Purchased at 24.97. Stop loss now at 26.59. Stock closed on Friday at 28.82.
7) TRLG - Covered shorts at 19.83. Shorted at 20.82. Profit on the trade of $99 per 100 shares minus commissions.
8) TRA - Averaged long at 33.025 (2 mentions). Stop loss now at 39.45. Stock closed on Friday at 41.30.
9) AMZN - Purchased at 115.94. Liquidated at 116.12. Profit on the trade of $18 per 100 shares minus commissions.
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Encyclopedia of Chart Patterns. A must have for chart aficionados! |
The opinions and commentaries by Mr. De Vito are not a recommendation to buy or sell, but rather
a charting guideline, based on his own knowledge and experience, regarding the stocks he is following or
that are brought to him by others. Mr. De Vito does not presently offer a track record of his trading experiences.
No inference of success and/or failure should be assumed. The
information enclosed above, regarding his background, length of trading, and experience, is correct
but is not meant to suggest, state, or infer any future success in trading, based on his opinions. The information herewith included should only be used by investors who are aware of the risk inherent in securities trading. Mr. De Vito accepts no liability whatsoever for any loss arising from any use of the information and/or comments he supplies. |
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