All of the major indices experienced high volume reversal days, which had to expected after the recent runup. After the recent string of steady up days, this mornings gap up was begging to be faded. Also as expected, it was fast and furious. It seems like volatility really is returning to the markets and the VIX had a nice bounce higher near support today.................read more at downtowntrader.com

Good Trading,

Joey

Stock Chart Analysis FCN

FTI Consulting, Inc. (Public, NYSE:FCN)

FCN has been trading a pretty tight sideways range since breaking out in August. This type of pattern can be classified as an ascending triangle and usually resolves itself as a continuation pattern. Closing above 54 would be a step in the right direction.



Good Trading,


Joey

for more analysis, check out downtowntrader.com

Stock Chart Analysis LTON

Linktone Ltd. (ADR) (Public, NASDAQ:LTON)

LTON had a nice surge a few days ago and has been consolidating that move since then. Chinese stocks have been on fire and while this is not a Chinese company, they provide services to China. Either way, I could care less what the driver is as long as someone is buying it. As a technical analyst, it is my job to uncover situations where one group of traders is overwhelming the other. LTON is a good example where bulls may be about to overrun bears.

Here is the daily chart showing a possible pennant forming above the 200 day sma.


The weekly chart is also promising showing LTON trading up near the high end of an established trading range. This is a level I will be watching as a break could mean the beginning of a new trend higher.


Good Trading,


Joey

for more analysis, check out downtowntrader.com

Stock Chart Analysis VSEC

VSE Corporation (Public, NASDAQ:VSEC)

Continuing the theme of low volume small caps, I present an intriguing chart of VSEC. I think I may be early on this one, but since it's holding the 20sma and has a clear stop area defined, I feel it's worth watching. If if fails, the losses should be minimal, and if it succeeds, then it should at least test the previous high near 57. Taking small risks for large gains is the name of the game. VSEC may be trading in a large triangle, which is why I feel I may be early (assuming a pullback to the bottom of the triangle before a breakout), but it may just as well already be in a new leg up. It had a pretty quick correction in August, and has been fairly steady since then. It's already at a point where most people that dumped in August may be regretting it and inclined to repurchase the stock. We should find out soon enough which direction it will take.



Good Trading,


Joey

for more analysis, check out downtowntrader.com

Stock Chart Analysis AVNR

AVANIR Pharmaceuticals (Public, NASDAQ:AVNR)

AVNR recently cleared a down trend channel and attempted to breakout. It paused at horizontal resistance and backed it's way to test the trend line again. It's at a point where the true trend should emerge. It will either pull back again and possibly keep drifting back down, or it will surge forward over the $2.50 area. Either scenario is pretty clearly defined, so at a minimum there shouldn't be too much guesswork here.



Good Trading,


Joey

for more analysis, check out downtowntrader.com

Stock Chart Analysis BCON

Beacon Power Corp. (Public, NASDAQ:BCON)

BCON may be close to breaking to new highs here. It has been consolidating the past few months and just recently started inching above most of the consolidation area. Volume is starting to pick up and there could be a decent short squeeze if it clears the July high, it could easily make the push to 2005 high over $5.



Good Trading,


Joey

for more analysis, check out downtowntrader.com

Stock Chart Analysis ROY

International Royalty Corporation (Public, AMEX:ROY)

ROY is a low volume small cap miner that may be poised to move higher. It was correcting in a channel after almost doubling earlier in the year, and it just recently cleared the channel. It's hugging the 20 day sma now, and could be close to setting a higher pivot high, which would confirm the change of trend from down to at least sideways. Clearing 7 could be the beginning of a move to new highs.


Good Trading,


Joey

for more analysis, check out downtowntrader.com