Stock Chart BDK

The Black & Decker Corporation (Public, NYSE:BDK)

The markets reacted negatively to the Fed decision today, and while I remain unconvinced that the rally that was unfolding is dead, I think it's wise to start looking for some shorts in weak stocks. The indexes are at stiff resistance and there is a chance things head lower here. BDK is a stock that failed to move up with the markets over the last month and is trading at three year lows. It has been consolidating for all of 2008 after topping out last year, and while there is a chance it is building a base here, nothing sticks out as bullish here. It is more then likely still under distribution and could head to new multi-year lows if the markets roll over.



Good Trading,


Joey

for more analysis, check out downtowntrader.com

Stock Chart Analysis DLTR

Dollar Tree, Inc. (Public, NASDAQ:DLTR)

I've been seeing a lot of these Reverse Head and Shoulder / Rectangle bottoming patterns in stocks recently. A large portion of these have been in retail stocks as well. So either retail stocks have been bottoming out, or this is a bull trap setting up. Either way, money can be made short term by playing the breakout attempts. I am showing a chart of DLTR below showing a clear move above the recent trading range. I am seeing similar charts in LOW, HD, and JWN. Volume was a little light on this one, and it has to contend with the 200 day sma above it, but overall it looks like it wants to test higher prices.





Good Trading,


Joey

for more analysis, check out downtowntrader.com