Stock Chart Analysis CIM

Chimera Investment Corporation (Public, NYSE:CIM)

CIM is a recent IPO in the financial sector which has largely been unaffected by earlier weakness in the sector. It has been steadily moving higher at a sustainable pace, and appears close to taking another step up. There is not much history to work with here, but CIM has yet to close under its 20 day sma. The financial sector also looks like it is beginning to lead when the markets move higher. Another bonus is that earnings are out of the way as of yesterday, so there shouldn't be any nasty surprises coming up. This looks like a decent opportunity as an intermediate term swing trade.


Good Trading,


Joey

for more analysis, check out downtowntrader.com

Stock Chart Analysis CPLA

Capella Education Company (Public, NASDAQ:CPLA)

CPLA looks like it has entered a downtrend, or at a minimum an intermediate correction. It has been in a healthy uptrend since IPO'ing just over a year ago, setting higher highs and lows. It traded sideways the last two months of last year before rolling over into a correction. It has started to set lower highs and lows which is the definition of a downtrend. It looks like it just set a pivot high and is starting to roll back over. This is an easy trade to manage because the stop loss area is very clear. If it trades and closes over 64.55, then the trend would be changing to at least sideways. If not, then it should be headed to lower lows, or at a minimum a retest of the January lows.




Good Trading,


Joey

for more analysis, check out downtowntrader.com

Stock Chart Analysis DISCA

Discovery Holding Company (Public, NASDAQ:DISCA)

While I'm not convinced the markets are ready to break down on another new leg down, it is fairly obvious we are in a bear market and the path of least resistance is down. DISCA is a stock that may be a little extended to the downside for a new short position, but overall the large topping pattern looks very promising. While this is not a text book head and shoulders, the general pattern is one of a stock that breaking under a large congestion area. Typically, these patterns lead to lower prices as the majority of the trading volume (along with the traders) is underwater after an extended period and supply begins to overwhelm demand. I would look for DISCA to trade back up to the neckline area in the next few sessions where sellers will be waiting to ease their pain.


Good Trading,


Joey

for more analysis, check out downtowntrader.com