Tuesday Update

Posted by downtowntrader | 1/10/2006 09:59:00 PM | 0 comments »

Nice finish for the indices. I believe in the theory that in a bull market/rally, stocks tend to open weak and finish strong. In bear markets, it's the opposite. The Pro's take advantage of the amateurs at the open, and sometimes it's hard to not get shaken. The best you can do is stick to your rules and keep the overall market in perspective. Look how BCON had a push down in the morning and then rebounded hard. Same with CKCM, although they were able to shake me out of a few shares on CKCM as I was anxious to protect profits. I can't find a whole lot that looks attractive from a risk reward perspective, but there are a few that merit watching.

BCON: I've been looking for a move from BCON for a while now, and it may finally be breaking out of it's base. There were a lot of alternative energy stocks moving today, no doubt due to oil moving. Although BCON has nothing to do with oil per se, it moves with the rest of the alternative plays such as DSTI, SPIR, SPWR, etc. I wouldn't be surprised though if there was some news released soon.

PCU: Copper was the only metal ore that moved today. PCU went along for the ride. If copper breaks to new highs, PCU will follow suit.
Here is the copper chart.
TRE: This is a gold play that is near a trend line and fib retrace level. Very solid volume building here.
MCX: I think MCX correction is near over. Corrected 61.8% and now coming back to test support. Volume has been decreasing on the pullback and MCX should stay above the recent bottom at 11.68.
GILD: I was waiting for the pullback after the new 52week high. Looks like we may get a 31.8% retrace to the breakout area. Solid entry there.

Good Luck and take profits.