Sunday Night Update

Posted by downtowntrader | 9/04/2006 10:17:00 PM | 0 comments »

As usual, I am posting a ton of charts for the weekly watchlist. This week will definitely be interesting as people are expecting all sorts of things now that the summer trading season is over and the bearish fall season is upon us. With the indices overbought, I'm not sure it's a good idea to start initiating a bunch of intermediate swing trades. Of course, the indices can continue to remain overbought longer and the best plays will probably be quick hits with tight stops. It is probably a good idea to not be fully invested as it is quickly becoming a dangerous environment. Funny enough, I found mostly bullish looking charts but I've found this to be a contrary indicator in the past, so I am definitely on alert for a reversal.

Oil is oversold and may get a technical bounce pushing the Oil stocks back up. Here is a chart of ALJ showing a hammer on support.

CXW has been trading a very tight range and looks like the move will be up.
GYMB recieved strong support at the rising trendline and may be headed back to the top of the trading range.
ETP has been consolidating at the upper range of the breakout candle and may be ready to move higher.
LVS may be ready to form the right shoulder of a head and shoulders top by falling out of this rising wedge.
I'm keeping an eye on SLW to see if takes out it's all time high or bounces back and consolidates.
CCJ may continue to follow through here after breaking out of a triangle.

NTAP may breakout to the upside if it can clear this tight consolidation.
ARD is wedged between support and resistance and is worth watching to see which way it breaks.
BTJ is starting to coil up for a big move. It looks like it will be higher especially after moving higher up on the IBD 100 this weekend.
EZPW looks like it will end up at least testing the upper resistance trendline.
MWIV found support and looks like it will attempt another assault on the upper trendline resistance.
OFLX is consolidating in a bull flag pattern but the very low float makes this very difficult to trade.
OKE looks like it is ready to resume the breakout after clearing this pennant pullback.
PVA continues to try and clear formidable resistance. If it can clear Fridays high, it may accomplish the breakout.
TWGP is high on my list this week as they cleared the triangle but haven't followed through yet.
TXU opened weak on Friday and finished strong right up to resistance. I will be watching this one as well for a follow through move to the upside.
AKAM is close to breaking out as well. This was one of the better looking tech stocks I looked at.
STLD may be forming a large double bottom base as it cleared the downtrend channel for the most recent leg down.

Here are some interesting links I read this weekend.

  • Fallond's roundup of public charts again. Great job of him sifting through the charts and highlighting some interesting ones.
  • Maoxian is feeling bullish after checking out the put/call ratio.
  • Great article by Tim Wood on how he combines cycles with Dow theory.
  • The Stock Bandit's three signs you have a pet stock.

Good Luck,