The Watchlist

Posted by downtowntrader | 11/05/2006 07:52:00 PM | 0 comments »

This week should be quite interesting with the indices now near make or break areas on the charts. There have been several clues that a high may be in, but we can't discount the possibility of another bounce into and through the elections. I liked energy stocks early last week, and it appears I was early by a few days, as most were pretty strong on Friday. I am also keeping an eye on retailers because if oil keeps rallying, then we may have some nice short opportunities there. I found quite a few charts bouncing near support, so either these will provide nice entries, or they will get stopped out for small losses if the markets fall apart.

Volt Information Sciences, Inc. (Public, NYSE:VOL)
VOL cleared the downtrend line and is trying to find support on the 20sma.

Vimpel-Communications (ADR) (Public, NYSE:VIP)
VIP is coming back to test support near the breakout area and the 20sma. Volume was light on the breakout, so be wary unless volume comes back.

Telefonos de Mexico, S.A. (ADR) (Public, NYSE:TMX)
TMX may be finding support on the lower band on the first pullback after clearing a base a few weeks ago.

Regeneration Technologies, Inc. (Public, NASDAQ:RTIX)
RTIX has been consolidating a pretty tight range under the 200sma. Volume is starting to build and it may make an attempt at breaking out.

OMNI Energy Services Corp. (Public, NASDAQ:OMNI)
OMNI may be done consolidating the previous run up. Keep an eye on it if Energy continues to rally.

Medifast, Inc. (Public, NYSE:MED)
MED may be putting in a double bottom here. MACD is diverging with price and Stochastic is turning back up.

Network Appliance, Inc. (Public, NASDAQ:NTAP)
NTAP is looking good if tech bounce here. It is looking for support on the lower band with indicators trying to turn up from oversold.

Helmerich & Payne, Inc. (Public, NYSE:HP)
HP is another energy stock that looks pretty decent. It is making the first pullback after clearing a downtrend channel.

International Assets Holding Corporation (Public, NASDAQ:IAAC)
IAAC is back at the uptrend line and may find support here. Volume declined on the pullback which is positive, but indicators were diverging with price which is negative.

Blue Dolphin Energy Company (Public, NASDAQ:BDCO)
BDCO hasn't moved much since I first recommended them, but they should take off if oil prices go higher. They still offer a pretty good risk / reward ratio.

Cyberonics, Inc. (Public, NASDAQ:CYBX)
CYBX is trading a little pennant here and may find support on the lower band.

Grant Prideco, Inc. (Public, NYSE:GRP)
GRP is close to the upper end of this downtrend channel. It looks like it made a higher low and is finding support on the 20sma.

We are at a point where things could get ugly in a hurry, so the prudent thing to do is only hold on to your most promising positions and not chase anything. Honor your stops and keep an eye on volume to confirm which direction things are going.

Good Luck,