The markets had a strong day today with the Nasdaq once again leading the way. It looks like the markets are finally clearing the recent trading range which would allow for more aggressive swing trading. We are still in the late stages of the overall rally though, so caution is still in order. While market internals were strong today, there was still plenty of weakness in the oil patch keeping a lid on the large caps.
EZCORP, Inc. (Public, NASDAQ:EZPW)
EZPW is near all time highs and looks like it is finding support near the bottom of this triangle.
Riverbed Technology, Inc. (Public, NASDAQ:RVBD)
TraderMike highlighted RVBD tonight and this fits my trading style perfectly. The ideal entry would be a higher high followed by a retracement that dipped into todays candle allowing for a closer stop.
FortuNet, Inc. (Public, NASDAQ:FNET)
FNET is probably a little risky, but it may be putting in a bottom here.
UTStarcom, Inc. (Public, NASDAQ:UTSI)
UTSI looks like it is about to fall off a cliff. The indicators never made it anywhere near overbought levels before it turned back down and it is close to breaking below a horizontal trendline.
Good Luck,
DT
The Nasdaq continues to lead the way and this is good for bulls. The Dow and S&P are lagging but I would wager that they are being held back by commodity stocks. The Nasdaq is up at resistance right now, and it has yet to clear the November high. With commodity stocks pretty oversold, I expect a bounce which should help prop up the large caps.
A reader (Scott K.) had asked for a look at AOB and ASIA. My apologies for the delay in responding.
ASIA is looking pretty good after clearing the recent consolidation. I'm not sure I would be chasing it, but I wouldn't be looking to sell unless it dropped back into the previous base.
AOB has been on a tear and just cleared a continuation pattern, so the evidence is pointing to higher prices. This one may offer a decent chance to get in for a swing if it pulls back to the ascending trendline and / or breakout area, but keep in mind it has had a nice run and is showing divergences. It just made a new high which was not confirmed by RSI, MACD, or Stochastics. This is warning that the rally is a little long in the tooth.
Good Luck,
DT
After all the recent volatility, it's interesting to note that the indices haven't really gone anywhere. The dollar has had a nice run recently but it is closing in on resistance. If it hits a wall and rolls over, the commodities and emerging markets may get a lift. Here are four more charts I added to my watchlist.
Grupo Televisa, S.A. (ADR) (Public, NYSE:TV)
I've been watching TV since the trendline break and todays drop on high volume may be signaling a change in trend. This is a good example of how previous support trendlines can become resistance once broken. I don't like how high I would have to set a stop by shorting here, so I will just be watching at this point. However, it could setup nicely soon.
Ultratech, Inc. (Public, NASDAQ:UTEK)
UTEK broke down out of this consolidation on high volume and has retraced on declining volume. Now it is showing a few spinning top candles signaling indecision. My guess is that it will see lower prices soon.
Forest City Enterprises, Inc. (Public, NYSE:FCE.A)
FCE/A has pulled back to the previous breakout area and may be confirming support at the 50sma.
ValueClick, Inc. (Public, NASDAQ:VCLK)
VCLK has pulled back to support as well, holding over gap support and the 50sma. It may find support here and offers a decent stop area.
It is still a pretty indecisive environment out there, so tread lightly. Once a move begins in earnest it will be easier to position yourself more aggressively.
Good Luck,
DT
Today was a pretty tame day compared to the recent price action, but I would say slightly tilted in the bulls favor. The Nasdaq held the 20 day sma as support and the large caps ended in hammer type candles. I am leaning to the bullish side as long as the Nasdaq continues to lead.
Here is an hourly chart of the Nasdaq showing some stiff resistance around 44.10. A move above this level on volume may force some early shorts to cover.
Harman International Industries Inc./DE/ (Public, NYSE:HAR)
HAR continues to hold over gap support and may find support here. There is still a chance of a partial gap fill, or an outright failure, but the risk / reward in this area may make it a compelling trade.
ACE Limited (Public, NYSE:ACE)
ACE has pulled back to the lower trendline in a rising channel and the previous breakout area. This is also a pretty decent risk / reward setup.
Southern Copper Corporation (USA) (Public, NYSE:PCU)
I am keeping an eye on PCU to see if it can break out of this consolidation channel, or if an outright failure is developing. I highlighted a major support area that if broken could lead to a large move lower.
Good Luck,
DT
It's been an interesting start to the year to say the least. Volatility looks to be coming back into the market, and despite some swings, there is no clear direction yet. My guess would be a move up soon based on the Nasdaq taking the lead from the blue chips. How high or long this move will be is anyones guess, but we are likely close to setting an intermediate to major high. The 2007 Consumer Electronics Show (CES) is in Vegas this week, and I imagine there will be plenty of moves in stocks like HAUP and IRBT. Here are a few stocks I am looking at this week.
Brocade Communications Systems, Inc. (Public, NASDAQ:BRCD)
BRCD's consolidation may be complete as it found support at the lower bollinger band. It may be headed to new highs from here.
Daktronics, Inc. (Public, NASDAQ:DAKT)
DAKT has been consolidating well above gap support. It may be ready to turn back up here.
InnerWorkings, Inc. (Public, NASDAQ:INWK)
INWK has worked it's way back to previous resistance which should revert to support. Watch for a candle pattern here confirming support.
Perficient, Inc. (Public, NASDAQ:PRFT)
PRFT may be a decent short, especially if I'm wrong on the near term market direction. It has worked it's way up to a declining 50sma and descending trendline which may serve as resistance.
Sun Communities, Inc. (Public, NYSE:SUI)
SUI is another possible short, but it is a little further along then I usually like. However, volume rose as it broke under some trendline support.
One thing that has been clear so far is that Precious Metals and Oil are getting hammered. I think the oil services stocks are setting up for a tradeable bounce for short term traders. I'm not sure what to think about the metals. It looks like the dollar is starting to turn and everywhere I look people are saying they are not worried about gold because it's in a multi year bull market. If no one is worried, then there is more downside.
If you have some time, check out this post by the Highchartpattern team on their trading rules and how they came about. The whole narrative series is worth checking out for those that have never visited them.
Good Luck,
DT
