ATU, MRVL

ATU may come back to test its breakout level at 52.50ish. I think it is a buy there if it does.

MRVL hit 16 this morning qualifying it as a nice buy here.

I'll have more later.

Sell SNDK

I'd sell SNDK now at around 46. It came out of the gate, peaked once it touched its 200 sma. If you were quick you could've and should've sold it there. If you weren't so quick, it then made a quick bottom and is hopping back up. You've got a nice gain in a short period of time here and there are mixed emotions about the quarter. Do it now and no one get hurt.

Also, MRVL is coming into buy territory this morning. It hit 16.05 making it a buy.

ATU, MO, ERTS, MRVL

These are the few large cap names I've been watching lately as there patterns are looking pretty decent.

Check out ATU. If you bring up the year long chart on www.stockcharts.com you can see the triangle that it has recently broken out from. The triangle starts in mid November and has only ended recently with the breakout yesterday. According to the triangle the move made after the breakout should equal 9 dollars, a 17 percent return from here. It looks like it came back to retest the breakout today and is in an ideal spot. If it falls back into pattern and does not hold you will know shortly and it will be a warning sign to sell the stock.

MO is still in the consolidation pattern that I mentioned earlier except now it is pressing up against the middle bollinger. Now that it has found some support I believe it will show us it's next move very shortly. Regardless of the weak quarter it reported, it looks like it might move higher from here.

Look at a year chart for ERTS (Hopefully I'll have it up here in a bit). See the rounding bowl? That means it's a good time to get in. I definately see this stock back at 58 in a relatively short time period. I'd look for 51.90 to make an initial entry then see if it comes back its 50 sma at 51.25 to pick up the rest. Stop out below the 50 sma.

MRVL is coming back to its 52 week low and I believe it will find support there to bounce off of. Look at a year chart and you can see a 52 week low at the beginning of October that hit 16 then bounced. It should do the same here. Maybe it will not find 16 again and will bounce from a higher level. That's why i would recommend giving it some leeway and entering initally around 16.50 with a small position. You can then add more once it gets to around 16.

I would've had these posted yesterday, but unfortunately my Apple Macbook, yes a mac, crashed and burned on me.

I'll be back in a bit to post more.

One New, Two Old

MO looks to be trying to brake out of a consolidation pattern and head higher. It looks solid for a couple bucks and probably more. Many have said that this is stock deserves to be at 100 and this could be the start up to that level. Doing a bit of math, 100-70 = 30 bucks = 42 percent. More realistically though, I believe soon the stock will make a move that measures around to the 75ish where the profit would be a more conservative 7 percent. From here though it doesn't look like the downside is threatening so I feel this is a pretty safe bet.


As an update (again), SNDK came down touched its 50 sma then bounced off pretty nicely. That was the chance to load up. Looking at a year chart, SNDK's 50 sma is now rounding getting ready to head back up and eventually break through the 50 sma. You know people will be buying when they see this. Also, I saw ADM do a very similar pattern to this one back in mid-March. Where is it from there? Up 13 percent in a month. I definately see SNDK at 52 in the near future. Again, math says 52-41.50 = 10.50 = 25 percent. Not a bad return at all.


CELG as I mentioned yesterday is continuing its consolidation. I do not like letting these stocks take off without me so if you are like me, I would recommend keeping a close eye on it and look to start a position right here.

Watch Celgene, Plan on Buying Soon

Celgene has been weak the last few days after running from 50 to 59. Like SNDK (which I'll update you on after this) CELG is consolidating gains in a little flag pattern. CELG will likely consolidate further until it approaches support. That support is likely to be the middle bollinger band which is currently at 55.53. However that bollinger is rising at the current time making it rising support. So, once CELG approaches it, it will be higher than it currently is.

I think CELG can run up to 60 where it hits it's 52 week high. While CELG would've been a better buy when it came down to touch it's 200 sma, a point that it has consistently bounced off of, it is still now in a position to make money. I believe it's consolidation pattern as you can see on the chart will continue on for 5 days at most before making a move to the upside, making now a good time to look at getting in. I would seriously consider buying an initial position around 56.50 then waiting to see if it'll come and set on it's middle bollinger where it will be even more attractive.

As a follow up to SNDK, the stock came down to a buy point today at 42. It is very possible that the stock will come down to touch it's 50 sma at 41.30. If it does, I would recommend picking up more shares there. Once this consolidation ends, after SNDK has been beaten down a bit (it's down 3 days in a row in the face of a strong market) I'm sure buyers will come back to push the name higher.

That's all for me right now.

CM

SNDK Coming In, Get Ready to Pull the Trigger

SNDK is coming in just as I pointed out in my last entry. Right now it is at 42.73 and will soon be at the 42 mark where I would highly consider buying some shares. If it falls past 42 look to buy at 41.30 ish where the stock will surely find support on it's 50 sma.

CM

SNDK Almost a Buy

Chart courtesy of StockCharts.com

Finally, I've got charts! Thanks to www.stockcharts.com, which I highly recommend everyone visit and use for your own charting needs.

The first chart I want to look at is SNDK. Although SNDK's recent move has been rather large, I believe it will soon move again making now the time you should be looking at buying the stock as it consolidates and finds support. Looking at the chart, the stock moved in a month's time from 36 to 45 and is now looks to be coming back down to it's 50 sma to find support. I believe it will find some serious buyers at the 50, if it even makes it there, making it an attractive buy. In addition the lower bollinger band is moving up to start supporting the price as well.

For an entry, I'd start looking at it now, buying gingerly if the action looks strong, but would preferrably wait until around 42 where it fills the gap it set back in March to get in. A stop loss can be placed about a percent or more below the 50 sma depending on your risk tolerance but I would seriously consider keeping it tight. If the 50 breaks, then chances are we were wrong and we get stopped out with minimal loss.

I'll be back later with more charts and analysis.

A Way to Play the Semis

The semis are always a closely watched sector. Don Hays, who was on CNBC on Friday and is a much followed forecaster, has predicted the semis to double this year. Up until now however though semi stocks (the semi vendors) such as MRVL and TXN have found a place around their 52 week lows after they've been beaten down by fears of a growing glut in semiconductors. Now though that some stocks have moved down considerably and have "priced in" the bad news, these stocks seem interesting to many to try and make a bet on these company's future prospects.

Many people are ready to buy these stocks, with any hint about a brighter future in guidance leaving these stocks including recent reporters SNDK and MU being bought up. Instead of purely buying these stocks though, there is another way of playing them with mitigated risk. This morning on RealMoney.com (which I suggest everyone get a subscription to) Cody Willard suggested a pairs trade involving semi suppliers and semi vendors. What he suggests is going long semi vendors (using long dated out of the money options) which are near 52 week lows and go short (via long dated out of the money options) semi suppliers which are at or near 52 weeks highs and "are all at risk as the semi-vendors to which they sell have finally embraced the glut's reality and pulled back on the buildout reins".

I think this an excellent hedged play on this group. As far as the success of the strategy, we will find out in the future.

That's it for now. I'll be back in a bit.

Averages hold 50 smas, looking decent

The S&P, Dow, and Nasdaq have not let go of their 50 smas but continue to hang tough. The charts look moderate bullish right here. It looks like each one of the averages, although a bit choppy has formed a higher low and should be able to move back up to their respective 52 week highs soon enough.

The correction was a strange one at that, although I can't condemn it to be dead yet with earnings season coming it's way. The strong break of the 50 after a long leg up and then a quick recovery. It was very unexpected.

That said, I think right now is a half in half out time, not a time to be in full force because we could still see some nasty days. You have the right to be choosy and now is the time that you should.

There are several strong stocks in the market now including BAM and CELG both fast growers and it could hop on board them.

I'm trying to find some charts to post up here. I'll be back soon, hopefully with charts.