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Issue #177 
May 30, 2010 | Newsletter
The newsletter with chart analysis for stocks and stock indexes |
Stock Indexes Analysis/Evaluation
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| Rally Falls Short, More Downside Expected!
DOW Friday closing price - 10136
The DOW continued the recent downtrend closing out the week lower than last week, even though the battle between the bulls and the bears had many twists and turns during the week, keeping the traders unsure of what the end result was going to be. Nonetheless, on an intra-week basis, the index did break below all the supports the index had built since November giving notice that the possibility of further downside continues to be high.
On Thursday, the DOW tested the 200-day MA, currently at 10270, but was unable to get above that line. Nonetheless, the index did not go below Thursday's low on Friday and therefore on an intra-week basis, it cannot yet be said the retest was successful. On the other side of the coin, though, the red close on Friday did make Thursday's close at 10259 into a successful retest of the line on the daily closing chart. If the index closes below 10259 on Tuesday, the successful retest will be confirmed.
On a weekly closing basis, the previous weekly closing high at 10620 will now be strong resistance. Above that level, there is no resistance until the 18-month weekly closing high at 11204 is reached. On a daily closing basis, resistance is decent to strong at Thursday's high close at 10259. Above that level there is minor resistance at 10297, decent at 10500 (psychological as well as previous daily close resistance from Nov/Dec), and decent again at 10725. On a weekly closing basis, support is strong at 10012, and then nothing until the 100-week MA, currently at 9560 is reached. On a daily closing basis, support is decent at 9974 and again at 9908. Below that, only minor supports are found at 9713, 9488, 9281, and 9135.
The bulls showed palpable disappointment on Friday after the index failed to follow through to the upside on Thursday's 285+ point rally, in spite of the fact that there were no negative news of consequence to prevent further upside. Such action suggests that the buying on Thursday was simply day-traders trying to take advantage of the price vacuum between 10,000 and the 200-day MA, and not actual buying strength due to positive fundamentals.
It is evident at this time that the 10,000 level in the DOW is a pivot point of consequence and that trading for the next week (or perhaps two) will be around that number. It is also evident that with the index having broken the previous intra-week lows that had been in place since November, that the recent low at 9774 will need to be retested successfully if the bulls have any hope of generating a new rally upward.
Volatility will likely continue to be strong as things in Europe are still unsettled. Wide weekly trading ranges have been the norm as of late and therefore it would not be surprising to see the DOW trade down this week to the February low at 9835 and as high as the 200-day MA which is now up at 10280. Such a trading range is the most probable as the recent low would be tested as well as one more retest of the resistance at the 200-day MA. It would also keep the future of the index uncertain (something that often happens) until more fundamental news comes out, such as the ISM index on Tuesday and the Unemployment report on Friday, not to mention giving more time to clarify the financial problems in Europe.
Though this scenario is the most likely to happen this week, based on the recent chart action as well as on the uncertainty about the reports due out this week, the reality is that the DOW is presently in a downtrend and therefore the burden of proof is squarely on the shoulders of the bulls. As such, there will likely be more selling pressure than bargain buying and that means that probabilities favor further downside than upside. In addition, with the index continuing to make lower weekly closes, the probabilities are high that next Friday the index will be trading around 10012 (strong weekly close support) if there are no new fundamental changes.
Having failed to follow through on Thursday's strong rally, it is likely the downside will be tested first, with a drop on Tuesday to 10,000 and possibly as low as 9835. Nonetheless, it must be mentioned that the ISM index report comes out Tuesday morning before the opening and that is always an important report that could affect the action. Based on the chart, though, if Friday's low at 10096 gets taken out on Tuesday morning, drops down to 9870 or perhaps as low as 9835 are likely to be seen. At that moment, it is likely the rest of the week will be decided on whether the lows hold or not.
NASDAQ Friday closing price - 2257
The NASDAQ was able to generate a higher close than last week, making last week's close at 2229 a successful retest of the 200-week MA, currently at 2218. As has been the case for the last 16 months, the buying was concentrated in this index (rather than on the DOW and the SPX). The positive close suggests traders are still unsure of what the market is going to do, thus leaving the door open for further news to help make the decision. The reality is that on a weekly closing basis, no sell signal has yet been given on any of the indexes that would signal that the recent weakness is no more than a correction within a bull market.
It is possible that the NASDAQ will be the index to key on this week as the 2200 to 2225 area, on a daily and weekly closing basis, is very important. Any daily close below the 200-day MA at 2225 would be a slight negative and a daily close below 2200 would likely bring in strong new selling as another sell signal would be generated on the daily chart. If that gets followed up with a close below the 200-week MA at 2218 next Friday, the floodgates to the downside will probably open.
On a weekly closing basis, minor to decent resistance is found at 2317 and again at 2347. Above that level decent to strong resistance is found at 2453 and major at 2530. On a daily closing basis, minor resistance is now found at Thursday's close at 2278. Above that level, decent to strong resistance is found at 2320/2330, strong resistance is found at 2425, and major resistance is at 2530. On a weekly closing basis, support is decent at 2212 and strong at 2141. Below that level there support is decent at 2045 and then nothing until the 100-week MA currently at 1975. On a daily closing basis, support is decent at the 200-day MA, currently at 2225 and decent as well as important at the low daily close seen this week at 2200. Below that level there is no support of consequence until decent to strong support is found at 2126.
Once again the NASDAQ continues to be the index to follow as far as a bullish scenario is concerned. If the index is able to close above Thursday's close at 2278, there is nothing to stop it until 2320/2330 is reached. Since that resistance is only 21 points from Friday's close, it wouldn't take much of a rally from the bulls to generate upside momentum. By the same token, the index could also be a powerful sign to the downside if it manages to close below 2200 any day this week, as there is absolutely no support of consequence for another 84 points to the downside from there.
Like with the other indexes, if the ISM index report on Tuesday is not better than expected, the index is highly likely to see selling coming in with the first downside objective, on a daily closing basis, being the 200-day MA, currently at 2225 (intra-day moves down to 2186 or even down to 2166 are certainly possible). What the index does at the 200-day MA is likely to be important. Nonetheless, the big key will likely be the Unemployment report on Friday as that will probably be the catalyst for whatever is going to happen to the market.
SPX Friday closing price - 1089
Based on Friday's close, it can be said the SPX had an uneventful week as it basically closed within 1 point of last week's close. Nonetheless, this past week can be compared to the first week of February when the index had a high of 1105 and a low of 1045, compared to this past week's high at 1104 and a low of 1041 (very similar trading ranges). That first week in February turned out to be an indicative week as the close that week became the strong to major support in the index seen now, at 1066. From the close that week, the index ran for the next 11 weeks to what is now the 14-month high at 1220.
In comparing the weeks, though, the differences are obvious inasmuch as the SPX has now closed below the 200-day MA as well as retested that line successfully (not something that happened then). In addition, the first week in February the index closed near the lows of the week, whereas the index this past week closed near the highs of the week. As such, it is possible that the weeks are turning out to be the exact opposites of each other and the end result could also be opposite to what was seen in February.
On a weekly closing basis, resistance is minor at 1137 and a bit stronger at 1145. Above that level, there is no resistance until 1217 is reached. On a daily closing basis, resistance is now strong at 1103 (Thursday's close and retest of the 200-day MA). Above that level resistance is decent at 1110, strong at 1150 and again at the high daily close, seen 2 weeks ago at 1172. On a weekly closing basis, support is strong at 1066 and strong again at 1040/1045. Below that level, support will be found at the 100-week MA at 1030. On a daily closing basis, support is decent to strong between 1068 and 1072 and decent at 1057. Below that level, decent support is found at 1136, at 1125, and at 994.
The SPX now has one negative thing that was not present in the first week of February when the indexes held the previous week's low at 1045 and began its rally upward, and that is the 200-day MA that has been broken. Having a strong chart resistance now, compared to the first week of February, suggests the outcome could be totally different from the outcome then.
It is evident that the 1066-1068 level, on both the daily and weekly closing charts, is now a major pivot point that if broken would bring in strong new selling. By the same token, the recent close at the 200-day MA at 1103 is as important to the upside as the 1066/1068 is to the downside. As such, on a daily closing basis, the index now has a clearly defined trading range of 45 points where a breakout or breakdown would be highly indicative. Based only on the break of the 200-day MA, the probabilities favor the downside.
The SPX will need a positive fundamental catalyst to generate a break to the upside. It is difficult to imagine such a catalyst being available at this time. A break below this past week's low at 1041 is likely to take the index down to test the 100-week MA currently at 1022. Nonetheless, if the index gets down that low, it seems probable that a retest of 1000 will be seen, at least on an intra-week basis. It is not expected that anything of consequence will be decided until the Unemployment report on Friday.
The question is still open as to whether the indexes are in a correction or whether they are starting a downtrend. That question was not answered this past week, but it is probable that before the end of the week that question will be answered after the ISM index report on Tuesday comes out as well as the Unemployment report on Friday.
The probabilities do favor a downtrend beginning as the recent world's financial problems don't seem to have an easy or short-term solution as such those concerns are likely to hang over the market for weeks and even months. This is especially true since it is not only Greece that is having problems but also Spain and Portugal, and maybe even Italy. News of the problems in those countries could surface at any moment and that will keep traders ill-at-ease regarding being aggressive buyers of stocks.
On the other side of the coin, the indexes have already seen over a 10% correction from the highs and somewhere along the line the negatives will get factored into the price of the indexes and a rally would then likely occur. The question right now then is "how much of the problems have been factored in already?". The answer is probably "not all" because there has still been "previous-uptrend" bullishness coming in on dips and that is likely to have prevented a good evaluation of where the indexes truly should be at this time. Some of that is likely to get resolved this week.
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Stock Analysis/Evaluation
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CHART Outlooks
Though there is still a decent possibility of the indexes trading sideways and if so generating of a decent rally to the upside, the probabilities do favor the downside coming first. This past week the upside was tested and resistances held well and therefore it is likely the downside will be worked on this next week.
This week there will only be sell mentions.
SALES
ATI - Friday closing price 54.68
ATI during the past 5 weeks has been generating a very strong topping out formation that has been confirmed with a strong increase of volume, especially recently when the stock was breaking intra-week below the 100-day MA. The stock did close below the 100-day MA one day but negated the break the next day helping to generate a rally that has likely ended up in a second retest of the highs on the daily closing chart as well as a retest of the double top presently seen on the intra-week chart at 58.25 and 58.00, something that was expected to happen to fulfill the topping out formation.
ATI has been in a bull-trend since November 2008 (from before the general market bottomed out) almost quadrupling its price going from a low of 15.00 to a high of 58.25. Nonetheless, it started to become evident 5 weeks ago that ATI was faltering when the stock failed to reach the 200-week MA, currently at 62.40 and began showing increased volatility and price range action. The stock did give a small sell signal 4 weeks ago when it closed below a previous weekly low close at 52.19 and proceeded to drop to a low of 45.20 just 2 weeks ago.
On a weekly closing basis, resistance is minor to decent 55.69 and strong at 56.56. Above that level, there is no resistance until the 200-week MA is reached, currently up at 62.40. On a daily closing basis, resistance is decent to strong between 56.23 and 56.30 and strong at the 23-month daily high close at 57.52. On a weekly closing basis, support is minor at 50.80 and decent at 50.00. Below that level, there is no support of consequence until 40.85 is reached. On a daily closing basis, there is very minor support at 53.56, minor at 51.10 and decent to strong at 50.39. Below that level there is strong support at 46.86 and then nothing of consequence until the 200-day MA, currently at 43.30 is reached.
ATI shows a double top on the intra-week chart up at 58.25/58.00 and strong resistance up between 56.40 and 56.61. The stock had left an open gap between 55.55 and 55.17 which was highly unlikely to be left open, especially since the stock has still been in a bull trend. On Friday the stock got up to 55.98 which closed the gap and can be considered a strong retest of the resistance between 56.40 and 56.61. In addition, the stock had a reversal day making new 2-week highs and closing in the red. Having accomplished everything needed to be accomplished for a successful retest of the highs as well as closure of the gap, the probabilities now shift toward lower prices, especially if the indexes are to head lower as anticipated.
It is evident that the stock shows good psychological as well as previous daily and weekly close support at $50. As such, if the stock is heading lower, drops down to that level are highly likely. Nonetheless, having dropped down to 45.30 as recently as 6 trading days ago, the traders cannot expect that strong support will be found at $50. Certainly a retest of the 45.30 low could easily be seen. It should also be mentioned that the stock has not built any strong weekly supports until 40.85 is reached, as such, if the stock is heading lower the risk/reward ratio of a short position at these levels is excellent.
Sales of ATI between Friday's closing price at 54.61 and 55.01 and using a stop loss at 56.71 and having an objective of 40.85 offers a risk/reward ratio of 7-1.
My rating on the trade is a 3.5 (on a scale of 1-5 with 5 being the highest).
IR - Friday closing price 37.31
IR is yet another stock that seems to have reached a top after a strong rally that started in March 2009 from a low of 11.46 up to the recent high made 2 weeks ago at 40.60. Nonetheless, since November of last year, the stock has been having lots of problems getting above $38 (with one exception a few weeks ago) and that suggests the stock is likely to be heading lower if the indexes fail to re-generate the up-trend.
IR was able to test successfully the 200-day MA, currently at 34.60, last week. That successful retest, in conjunction with the rally seen in the indexes, helped to generate the retest once again of the resistance at $38. Nonetheless, even with a possible breakaway and runaway gap formation seen this past week, the stock was unable to get above the strong resistance at 37.86 having gotten up to 37.93 on Friday and generating a small reversal pattern by closing in the red.
On a weekly closing basis, resistance is decent at 37.33 and strong at 38.35. Above that level, there is strong resistance again at 40.17. On a daily closing basis, resistance is decent at 38.05, a bit stronger at 39.00 and strong at 40.01. On a weekly closing basis, support is decent at 35.88 (200-week MA) and again at 35.24. Below that level, support is once again decent at 34.73 and then nothing until strong support at 31.26. On a daily closing basis, support is minor at 36.55 and decent to strong at 35.35 to 35.50 with 2 previous daily closes of some consequence there, as well as the 100-day MA. Below that level, support is decent at the 200-day MA, currently at 34.45 and then nothing until decent to strong support is found between 31.26 and 31.91.
Since August of last year, IR has been basically trading between a low of $30 and a high of $38, with one exception which was the rally seen between May 10th and May 19th where the stock got up to 40.60. It must be noted that since May 2009, when the stock broke above the 200-day MA, that MA has held well. The line has now been tested successfully on 3 occasions since February (the last one being last week) but if the indexes show any more weakness than what has been seen recently, the probabilities of the line being tested a 4th time and breaking will be high.
On a semi positive note, though, IR did generate a possible breakaway/runaway gap formation this last week with a gap on Tuesday between 35.76 and 35.93 and a gap on Thursday between 36.83 and 36.93. Nonetheless, the gap formation did not generate enough buying on Thursday/Friday to get above the resistance at 37.86 and with the indexes likely to be under pressure at the beginning on the week, selling pressure is likely to be seen. If the first gap is closed, it is likely the second gap will be closed as well and that should push the stock back down near the 200-MA. A fourth test of the 200-day MA will increase the probabilities of line breaking and generating strong selling thereafter.
Sales of IR between Friday's closing price of 37.31 and up to 37.77 and using a stop loss at 38.52 and having an objective of 30.00, will offer a 6-1 risk/reward ratio.
My rating on the trade is 3.75 (on a scale of 1-5 with 5 being the highest).
SOHU - Friday closing price 44.20
SOHU has been in a downtrend of consequence since September of last year and has not yet reached a strong area of support where buying can be expected to be seen. In addition, the stock 4 weeks ago broke below the 200-week MA and has not only confirmed the break but also tested the break successfully 2 weeks ago as well. As such, the probabilities of further downside at this time are strong, especially if the indexes get selling this coming week as anticipated.
SOHU is nearing a level of support of consequence between $34 and $38 that is likely to stop the recent downtrend. Nonetheless, a drop down to that level is highly likely and with the stock trading up at the $44 level and with a clearly defined short-term resistance level close by, sales of the stock still offer a very good risk/reward ratio with a high probability rating.
On a weekly closing basis, resistance is minor but important at the most recent high weekly close at 45.93. Above that level, there is no resistance of consequence until decent resistance is found between 48.50 and 49.00. On a daily closing basis, Thursday's close at 45.16 is minor to decent resistance. Above that level, there is decent resistance up at 47.35. On a weekly closing basis, support is very strong between 37.50 and 39.55. On a daily closing basis, support is decent at 39.35, decent to strong at 37.87 and strong at 34.56.
SOHU is in a definite down-trend that has recently gained new strength with the confirmed break of the 200-week MA. In addition, the stock shows no support of consequence at all until the $39-$40 level is reached. Drops down to that level are highly likely. In addition, the stock has been in a downtrend in spite of the strength of the indexes and now that the index market is under selling pressure, more selling is expected to be seen.
It also must be noted that in such a strong downtrend the 20-day MA will work as resistance and since April that line has held well. On Thursday, the 20-day MA was once again tested successfully when the stock closed at 48.40 (right on the line) and then generated a red close on Friday.
SOHU does show a 3 year support area of consequence between $34 and $38 that has been tested a total of 5 times between Jan08 and Mar09. Nonetheless, with the recent weakness, drops down to that level once again are highly likely. With the stock holding firm below the 20-day MA, it offers a trade with limited risk and high profit potential, as well as a high probability rating.
Sales of SOHU between Friday's closing price of 44.20 and up to 44.75 and using a stop loss at 45.20 and having an objective of 38.25 offers a risk/reward ratio of 6-1. If stopped out, I would again be a strong seller at the 200-week MA, currently at 46.95 using a stop loss at 48.30 and having the same objective.
My rating on the trade is a 4 (on a scale of 1-5 with the highest probability being a 5).
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Updates
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| Monthly & Yearly Portfolio Results
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Closed Trades, Open Positions and Stop Loss Changes
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Status of account for 2007: Profit of $9,758 per 100 shares after losses and commissions were subtracted. Status of account for 2010, as of 4/30 Profit of $3754 using 100 shares per mention (after commissions & losses) Closed out profitable trades for May per 100 shares per mention (after commission)
LEN (short) $275 UTX (short) $1498 VALE (short) $301 CAL (long) $248 JRCC (short) $275 RIMM (short) $686 CAL (short) $221 SKX (short) $1051 SHO (short) $165 TRV (short) $189 V (short) $102 AMXN (long) $339 Closed positions with increase in equity above last months close.
SKX (short) $164 Total Profit for May, per 100 shares and after commissions $8471 Closed out losing trades for May per 100 shares of each mention (including commission)
MRK (short) $47
RIMM (short) $112 UTX (short) $30 OSK (short) $65 Closed positions with decrease in equity below last months close. GIGM (long) $24 Total Loss for May, per 100 shares, including commissions $278 Open positions in profit per 100 shares per mention as of 5/31
BEXP (short) $69 TXN (short) $27 LINE (short) $130 AA (short) $185 KGC (long) $41 WMT (long) $44 KO (long) $128 GPS (short) $$213 Open positions with increase in equity above last months close. GPS $293 Total $1139 Open positions in loss per 100 shares per mention as of 5/31
NONE $0
Open positions with decrease in equity below last months close. NONE $0 Total $0 Status of trades for month of May per 100 shares on each mention after losses and commission subtractions.
Profit of $9332
Status of account/portfolio for 2010, as of 5/31Profit of $13086 using 100 shares traded per mention.
NUAN traded between support ($15) and resistance ($17) this past week and is likely to tread water again between those two levels this coming week. It is important to note, though, that the stock did not get down to the 200-week MA, currently at 14.50 this past week and if the indexes start trading lower on Monday, after the ISM Index report, it is also likely the stock will trade down as well. If that happens, it would not be surprising to see the stock trade down to the 200-week MA, much like the DOW and the SPX trade down to the 100-week MA's respectively. The stock closed on Thursday at the 50-day MA, currently at 17.08 and if the stock closes in the red on Tuesday, an initial drop down to the 100-day MA, currently at 16.35, would be highly likely. By the same token, any close above 17.38, will likely generate additional buying interest taking the stock to test the recent highs at 18.55. The stock left an open gap this past week between 16.40 and 16.53 that will be a magnet if the stock fails to move higher. A close below 16.35 will likely thrust the stock down again to $15 and likely down to the 200-week MA at 14.50.
GPS continued its recent downtrend but the stock was able to hold itself above, on an intra-week basis, the 50-day MA, currently at 20.85 (got down to 20.94). There is substantial congestion support between 20.78 and 22.02, so trading in that range has little meaning. Nonetheless, a break of that support would likely thrust the stock down to the 200-week MA, currently at 18.25. The stock has also been playing straddle-the-fence with the 200-day MA currently at 21.80 and if the stock is able to generate a couple of closes in a row below that line, selling pressure will increase. By the same token, if the stock is able to get above this past week's high at 22.16, rallies up to at least 23.63 would likely occur. As such, stops should be lowered to 22.26. The gap between 20.51 and 20.85 has not yet been closed and that has kept the bears from getting aggressive. Nonetheless, if the stock drops down below 21.00 one more time, the gap is likely to get closed and a drop down to the psychological support at $20 will likely be seen. AA was unable to accomplish anything of importance to the upside and maintains the bearish outlook the stock has had since it broke below the weekly close support at 12.18. On Thursday, the bulls attempted to get the stock up to the previous daily low close support it broke at 11.94 but the best the bulls could do is get the stock up to 11.84. As such, the stock maintains a strong bearish outlook with $10 a very viable short-term objective. Stops can be lowered down to 12.48. Further downside is expected this coming week. LINE was able to stay above the previous week's low at 21.42 (got down to 21.93 this week) and in so doing the bulls were able to retest the strong resistance at 25.00. Nonetheless, the stock ended up having an inside week on the weekly chart and that leaves a lot of questions unanswered. The stock did close near the highs of the week and that leaves the possibility of going above last week's high at 24.99 open. Nonetheless, even if that happens, resistance will be strong at 25.49. The stock did generate 2 gaps this week (22.74-23.10 and 24.10-24,38) to the upside (breakaway/runaway?) but was unable to get above the very important 200-day MA, currently at 25.15. As such, if the stock is unable to get above the 200-day MA during the first 2 days of trading this coming week, those gaps will become magnets for the sellers. If that happens, a minimum drop down to 21.90/22.12 would likely be seen. The stop loss should remain up at 25.89. Likely trading range for the week is either 25.15 to 21.90 or if the indexes are weak, a trading range between 24.50 and the 100-week MA at 20.50 would likely occur. KGC has flirted with the 200-week MA, currently at 16.80, for the last 2 weeks. Nonetheless, the stock has been able to close out each week above the line. In addition, the stock did have a green close on Friday making last week's close at 16.63 into a successful retest of the line. As such, the stock should be moving higher from here unless the indexes go down strongly enough to bring selling to the stock. The chart is not as strong as it could be and therefore there are still a lot of questions unanswered. The 100-day MA, currently at 18.10, is a big key to the upside. Nonetheless, without the stock closing above that level, it will stay fragile and with possibilities of lower prices. The current stop loss at 16.03 cannot be changed. As such, this week is likely to be choppy and without direction, at least until something is decided with the indexes. TXN tried on 3 different occasions during the week to negate the break of the 200-day MA, currently at 24.70, but ultimately was unable to do so. By the same token, the stock was able to stay above the 50-week MA, currently at 24.25 as well as the most recent low weekly close at 24.00, leaving the door open for either direction this coming week. Nonetheless, on the daily chart, the stock did test the 100-day MA, currently at 24.85, successfully and therefore the probabilities favor the downside this coming week. Any daily close below 23.94 would now be a negative. There is still a slight possibility of a rally above 25.00 up to 25.35 or even 25.48, but the stock is unlikely to go higher without the indexes generating a strong rally. Stops should be at 25.60. BEXP got up to the bottom of the runaway gap between 18.02 and 17.89 with a rally up to 17.90. Nonetheless, strong selling came in at that level generating a reversal day closing in the red. The stock did leave a gap open on the way up between 15.50 and 16.00 that is likely to be a magnet this week. The 100-day MA is currently at 16.30 and the bulls have to hold that line if they have any hopes of generating higher numbers. A break of the 100-day MA will likely cause the stock to fall down to at least 15.00. If a sensitive stop is preferred, you can place it at 18.01. KO tried very hard on Friday to generate a close above last week's close at the 100-week MA currently at 51.60. Nonetheless, the selling pressure in the indexes late in the day caused the stock to close lower. As such, the probabilities are high that the stock will go back down to the $50 level this week, where the 200-week MA is currently at, and quite possibly close at that level. Nonetheless, strong support is seen at $50 not only from many years of previous closes there but as well as psychologically. The stop at 49.34 continues to be viable. WMT got down to the psychological support at $50 this week with a drop down to 50.00. Nonetheless, the stock was able to generate enough of a rally to close out the week exactly at the 200-week MA, currently at 50.60. The support at 50.00 is very strong and likely to hold but a retest of the 50.00 low seen this past week is likely. The stop loss at 49.42 continues to be a viable one.
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1) GPS - Shorted at 23.93. Averaged short at 24.785 (2 mentions). Stop loss now at 22.26. Stock closed on Friday at 21.80.
2) TRV - Covered short at 48.41. Shorted at 50.44. Profit on the trade of $203 per 100 shares minus commissions. .
3) KO - Purchased at 50.09. Stop loss at 49.34. Stock closed on Friday at 51.40.
4) WMT - Purchased at 50.12. Stop loss at 49.42. Stock closed on Friday at 50.56.
5) CAL - Covered short at 18.66. Shorted at 21.01. Profit on the trade of $235 per 100 shares minus commissions.
6) V - Covered short at 73.97. Shorted at 75.13. Profit on the trade of $116 per 100 shares minus commissions.
7) TXN - Shorted at 24.69. Stop loss at 25.60. Stock closed on Friday at 24.42.
8) BEXP - Shorted at 17.85. Stop loss at 19.24. Stock closed on Friday at 17.18.
9) AA - Shorted at 13.49. Stop loss now at 12.51. Stock closed on Friday at 11.64.
10) KGC - Purchased at 16.80. Stop loss at 16.03. Stock closed on Friday at 17.21.
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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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