Back at it Again

Well first, I'm back after a few days of intense work on my part. Secondly, the bulls are back this morning showing off their strength and lifting the broad market. After viewing my watch list and seeing complete red on Monday, today i'm seeing only a few among the many greens which have been pushed higher.

Here's a few updates on a couple stocks I've mentioned.

WAG -- bounced off support right around where I'd mentioned previously and is up now about 2.5 % from that spot.

USG -- continues to pull back. However, its move today makes it look like it will not fully pullback to support but take off from higher. I'm going to continue to monitor this stock as it has tremedous upside from here and I don't want to miss the ride.

I've still got a lot to do so thats it for me now. I'll be back soon

CM

Back Away from Breakouts

Seems we are at a bit of a turning point with bulls and bears trying to decide which way the broad market is headed. One thing I know is today's action was big and it hurt. So many outperformers such as Goldman Sachs and The New York Stock Exchange among others were faced with reality and pushed lower. The question now is where we are headed in the near future. Are managers going to take this dip and buy it up or are people going to continue the action today and take profits from the latest run up? One thing I have seen that is very prevalent on many of the charts that would lead me to look at the latter option is the prevalence of failed breakouts. It leads me to think that this market is actually relatively weak at this point and could have further downside from here. For some examples, look at AKAM, PKTR is threatening, and DJ has failed.

Anyway, I'm done for the day. I'll be back on here tomorrow.

CM

Big Picture Overshadows Everything Else

With the major averages way down, there is very little individual names can do. PKTR did a U-Turn this morning after moving up strongly at the start once the strong movement downward started. Many if not almost all other stocks have felt the pain today. What is there to do in a situation where nothing except the collective movement matters? Be careful. Don't panic but don't react to quickly without assessing the situation. We haven't had a down day like this in a good while. There very well could be more to come now that people get this ubrupt change in direction.

I'll have more to say in a bit.

CM

And Down Comes the Hammer

Virtually everything got hit hard this morning as sellers came in and pushed the market downward. All three major averages are in the red and have been torn apart as the DJIA is down 135, the NASDAQ down 44 and the S&P down 15. Trading could get worse tomorrow as those who have profits seek to protect them. This is definately a spot where I'd keep both eyes open.

Two more things: WAG is getting very close to where I'd pull the trigger. It should hit support right around 40. If buyers don't materialize pretty quickly or if that level broke signficantly I'd be out of there in a flash.

USG is coming down again. I'd watch 47.20 for support.

CM

Finding a Few Gems

I ran across these three charts over the weekend. Here's my take on em:

PKTR -- broke out of a bullish triangle last week and is consolidating just around 12 dollars. In its breakout PKTR not only broke through its triangle, it also broke a pretty significant resistance level at 12 dollars. That level had been the point of a three tops that had come within 6 months. Looking at the chart, it looks like PKTR has some upside and could be bought right here.

WAG -- this stock has been getting punished unmercilessly since its top in September. It has fallen over 20% from its high and continues to fall. Right now it is riding its lower Bollinger Band tightly, is oversold and has an OBV which looks to be stabilizing. These characteristics and the fact that WAG has strong support at 40 coming up leads me to believe their will be a strong bounce coming once support is hit. I'd look for the a little above the 40 level to catch WAG and ride it higher.

One other note: A look at an ADBE chart this weekend showed that RSI is diverging from the price movement. ADBE's recent movement showed it gapped up to 42.75. It's previous high had been around 41.90. During this move up to 42.75, the RSI failed to make a new high and actually dropped a bit from first high (41.90) to the next. This divergence may seem small but it definately signals to me that ADBE may be running out of steam right here and should only be monitored and not bought.

Thats it for me tonight. I'll be back on posting tomorrow.

CM

Market Weakens, Sears Stays Strong

After an open that led to a top at 12,350 on the DOW, things are cooling off and coming back down. It looks to be another day where minimal price action happens in the broad market. However, there are a few names that are moving strongly this morning.

SHLD is up strong. Currently it is up 6.25 to 178.60 which is about a 3.5% move. Profits might should be taken at this level or a bit higher for traders.

NYX continues to move upward. It is up 4.60 (4.4%) to 109.12.

BEAS is up .70 (5.29%) to 13.92.

There are many individual names that continue to move strongly despite rather meager broad markets movements. The key is just to find these and stick with them.

I'm going to be looking for a few more names and I'll keep this updated.

CM

Looking at Individual Names, Ignoring the Broad Market

As the Nasdaq, Dow, and S&P trudge along, slowly as of late and looking in need of consoidation or a pullback, I continue to see some great oppurtunities in individual stocks.

As I said earlier today, I bought a little INFY as it came down in the early morning. It looks like a winner to me. Others that I'm watching include:

PKTR which is in a bullish triangle that I'm definately considering buying on a breakout or even in anticipation of one.

CECO is consolidating looking to go higher.

UNM is in a steady uptrend right now riding its trendline higher.

All of these look like very good potential trades.

Thats it for now.

CM