Gap fill

Posted by downtowntrader | 4/09/2007 09:46:00 PM | 3 comments »

Most of the indices filled the late February gaps today and pulled back from there. While there is a chance that this is as high as the rally will go, there is no evidence of a top yet, and the indices remain comfortably over their 20 and 50 day sma's. I am still staying away from shorting, but will be looking at QID or TWM to hedge if the markets do turn down here. Here are a couple more long setups.

Interpublic Group of Companies, Inc. (Public, NYSE:IPG)
IPG has been pulling back in a consolidative fashion after breaking to 52 week highs recently. It may be setting up for a bounce higher here if the markets are willing to cooperate.


Lockheed Martin Corporation (Public, NYSE:LMT)
Defense stocks have been pretty strong lately, and LMT looks like ot may be clearing a recent consolidation. It remains near multi year highs and could be breaking out here.


The next few days could be choppy, so it may be best to wait for the indices to retrace to their rising 20 day smas.


Good Luck,



Joey

3 comments

  1. Woodshedder // 11:34 PM  

    I've been meaning to add LMT to my watchlist...thanks for reminding me!

  2. Woodshedder // 11:37 PM  

    Are you still in ITRI? If so, do you have any sort of target? It looks to me like a 52 week high might be in order if I'm patient.

  3. downtowntrader // 11:26 AM  

    Hey wood,
    I do still have ITRI. I was trying to sell a little yesterday near the high, but couldn't get my ask. I think you're right though, a new 52 week high may be in order. My concern is more with the market pulling back for a few days so I am trying to trade around it. We'll see.

    Good luck,


    Joey