Stock Chart Analysis RICK

Rick's Cabaret Int'l, Inc (Public, NASDAQ:RICK)

I guess strip clubs do well during recessions, because RICK's chart isn't showing much weakness. This looks like a very straight forward setup with a bullish looking consolidation range coinciding with a possible market rally. I like how RICK quickly bounced off the $19 area twice in the past month, forming a possible double bottom off the lower bollinger bands. I would prefer that price close above the 20 day sma before taking a position, but if things look ok tomorrow after 10 am, and it's above the 20 sma, then I may take the trade anyways.




Good Trading,


Joey

for more analysis, check out downtowntrader.com

Gal Arav, founder of Instantbull.com appears to hit it out of the park again with a new project. He launched a new site that aggregates news in a very innovative way. The site is named Newsflashr and it promises a faster way to track all the most credible news sources. The site focuses on keywords when aggregating news and then displays popular keywords in a cloud like format. When you click on a keyword, it displays links to current news. I have to say, I tried it and it was very fast and I am really impressed at how innovative this idea is. Here are a few excerpts from their site:

• hot topics are extracted from all the most credible news sources in order to display the "collective intelligence" of all the top news editors
• results are displayed within a "hot topic news cloud" in order to transparently link matching news headlines at unprecedented client-side speed (competing services are slower due to their use of standard server-side retrieval operations)
• mainstream news and blog categories can be easily compared while viewing each news source's independent traffic rankings (provided by Alexa, an Amazon, Inc. company)
• search and track popular topics in news headlines up to 7 days old; search results are immediately displayed in a convenient summary matrix
• customize the "freshness" of highlighted topics and corresponding headlines
• access all headlines on one concise page in either "feeds view" or "topics view", including photos and images in the news that match selected topics

I use google to aggregate my rss feeds, but I have always felt my news feeds were slow and overwhelming with stories I wasn't interested in. I can easily see myself using Newsflashr to check breaking news stories.

Check it out Newsflashr.com when you have a chance.

Joey

One of my most reliable indicators for identifying when the markets are getting oversold is Worden’s T2108 indicator. I’ve written extensively about it in the past, but basically it measure the percentage of stocks trading above their 40 day MA’s. It dipped below the important 20% level today. While this doesn’t mean the markets will bounce right away, it does mean stocks are being sold to historically low levels. It also doesn’t mean the market will put in a bottom and resume the bull market either. But when bearish sentiment gets to the extreme, it becomes unsustainable and gives way to a bounce back rally. We still haven’t had a capitulation day though, and I would prefer to see that. I thought we might get one tomorrow with TXN lowering the profit forecast and subsequently taking chip stocks down in the after hours, but our futures are currently pointing to a higher open. Maybe we get a 2 or 3 day weak bounce before the flushout. Kirk had a great post tonight with similar thoughts on where we are in the markets.

Good Trading,

Joey

Stock Chart Analysis GENZ

Genzyme Corporation (Public, NASDAQ:GENZ)

GENZ hit all time highs early this year and then entered a very orderly correction as the markets fell apart. It is near the upper range of the channel it was following through the correction, and could be poised to break out of the trading range. I often try to identify smaller trading ranges within a larger trend to help locate possible turning points. The trend clearly changed when GENZ broke under the blue channel highlighted below (sloppy trend line but you get the idea). An important note to add, is that just because a trend ends, it doesn't mean it will necessarily reverse. More often then not, the trend changes to a sideways trading range. In the case of GENZ, price didn't even make a lower low, so clearly there are still buyers looking to get in. It also has a clear stop loss area defined in the case that the trade doesn't work out.





Good Trading,


Joey

for more analysis, check out downtowntrader.com