Weakness out there

Posted by downtowntrader | 4/10/2006 09:15:00 PM | 0 comments »

I saw a lot of weakness today in some pretty good stocks. Some of the shorts I posted yesterday worked out real nice such as WSO,FFIV, and BBD. There is a chance we get a bounce tomorrow off Alcoa's nice start to the earnings season. Also, some of the indices are oversold on the hourly charts and are at support. Of course, people could take this as an opportunity to take profits on their materials holdings, so be careful tomorrow.

There was a divergence on gold and silver stocks from the actual commodity as happened a few weeks ago. Gold and Silver finished higher while the underlying stocks finished lower. When this last happened we had a quick bounce in the stocks and then they dragged the commodity lower. I will be watching to see what happens this time.
Here are a few charts that look interesting for tomorrow.
MVK is trading a tight consolidation. Watch for a break over the recent highs.
TRN has held above the breakout area and may find support here.
AKS may do well if basic materials runs tomorrow.
AL was running higher after hours and looks like they will gap over resistance.
ENG formed a doji near support although the drop was pretty steep.
EGY briefly cleared resistance and closed right at horizontal resistance. I think it will breakout soon.

I am also still watching everything I posted last night for long and short setups as some are still in a good spot.
Good Luck tomorrow,