Thursday Update

Posted by downtowntrader | 11/18/2005 01:01:00 AM | 0 comments »

Lots of breakouts the past few days! Let's hope the market follows through, although with tomorrow being options expiration, we may get a tight and trendless market tomorrow. Don't forget to take some profits now that the market is strong. We sometimes get in the trap of holding out for more, and then when things turn south, hold on waiting for the prices we missed. I've been guilty of that sin a little too much lately. I took some off the table on AAPL(but then bought back in too early), TRE, and SLW. Here are some interesting charts on a few of my positions.

REDF is starting to look even better then before. I initiated a long today on the first pullback after the higher high. I love Slow Stochastics crosses from below 20, and REDF is doing just that. Look at the previous moves after that signal. This could be interpreted as a triangle base if you remove some of my trendlines.
NBIX is also looking very nice. This has stalled the past few days, but this allowed it to drift towards the trendline. Once it made the higher high, it was playable. I'm looking for a nice move here into the upper trendline.

I may be a little early here, but I believe the "Smart money" has begun to accumulate here. Look at volume the past few days quietly coming in. I picked up a few shares, and will add as it pulls back. I will sell if it breaks down below 1.60-1.65 ish, but my guess is that it won't get there. I bet that there will be an announcement or some sort of news that will propel this higher once the smart money finishes what they are doing. Just me speculating, but this one has some good backing.

Also looking good are BOOM, SVA, DNA, MRVL, and HPQ. Good Luck,