Turkey Day Update

Posted by downtowntrader | 11/24/2005 11:01:00 PM | 0 comments »

Happy Thanksgiving to everyone. Haven't been able to post much lately, as I've been pretty busy outside of trading. I will probably not trade much tomorrow, if at all, but I have a few interesting setups for swing trades.

First, though, I would like to comment on the overall market. Wednesday, there was a late day reversal although it was on low volume. This was dismissed as people closing out trades before the holiday weekend, but as short term traders we need to keep in mind that the markets have been overbought for a while now, and there should be another reversal coming soon. Bull markets close strong, not weak, and when there is weakness at the close, it could be a hint of anxious holders wanting to start locking in profits. We are still in a rally, but I say start protecting some profits.

I've read in a few places about oil and energy stocks looking to find support soon, and a possible rebound in oil prices with colder weather starting to set in. The oih etf has been rebounding and it seems like money is flowing back into the big cap energy stocks. I will play this a little differently though. When oil was running recently, alternative energy stocks had some pretty good runs. With that in mind, I think it's time to start nibbling at some of the alternative energy plays out there. Keep an eye on BCON, CPST, BLDP, DSTI, etc. If anyone has other idea's on these plays, please leave me a comment and I will try to chart it.

With that in mind, here are a few charts that look promising including BCON and BLDP.

ANTP: First today is ANTP. I though this had failed a few days ago, but the action after the failure to break out was promising, so here we are again trying to break resistance. This could be a nice move if it breaks out, so keep it on your watch list.

BLDP:Still under resistance but indicators are trending up. MACD divergence on the recent low.

BCON: Possible triple bottom here. I think this is a retest of support and it should rebound here. Next higher high without faliure of trendline would be confirmation IMO.

RNWK: Broke out of pennant formation and is consolidating. Looks positive.

DLB chart looks very intriguing. Doji at support may give us an early signal here.

I noted a few days ago that IPII was on support. Support was confirmed and now the trendline is what remains to be broken.