Reversal Time?

Posted by downtowntrader | 3/14/2007 08:34:00 PM | 3 comments »

The bulls stepped in today after the markets rolled over in the morning. While I had it in my mind that the indices might find support here, I figured they would rollover after the pathetic action this morning. It seemed like any buying was met with ample supply. Things turned dramatically around lunch time as homebuilders started rallying. I knew something was up when LEND and RATE were rallying sharply. I covered most of my shorts right there and was stopped out on the rest later. So, have we bottomed short term? It's possible, but I don't think it will be clear sailing right now either. I see these hammer type reversal days retested 2-3 bars later more times then not, so it may be choppy the next few days. Add options expiration this week. Then add a fed meeting next week, and the potential for a dead market exists as well. Then on a personal note, I will be traveling to Europe late next week for two weeks, so I'm not sure how I'm gonna play this. I will definitely stand aside the next two days, and then figure out what I want to do next week.

I did find these two charts on my trade-ideas Oversold Strong Stocks scan. While I'm not being overly aggressive or bullish, these are nice chart setups.

Becton, Dickinson and Co. (Public, NYSE:BDX)
BDX has had a pretty orderly pullback to support and had a strong day today on above average volume. These are the kind of stocks that perform the best for me. Double bottom on the lower bollinger band while staying in the upper part of the yearly range.

Cbeyond, Inc. (Public, NASDAQ:CBEY)
CBEY is sporting a similar setup, other then a longer drawn out consolidation. Nonetheless, it had a strong day today as well, also on above average volume.
Good Luck out there.



  1. Woodshedder // 1:04 AM  

    Nice bull flag there in BDX.

  2. Rahul // 10:20 AM  

    Yeh with option expiration and Fed anouncement next week, market will be more or less dead.

    Trying to trade a dead market is just asking for trouble


  3. Anonymous // 1:17 PM  

    How do I configure trade ideas for "Oversold Strong Stocks scan"? Is there an email address I can email you at? Thanks.