There are no charts tonight, as I feel it's probably time to step back and wait to see what the markets will do. I posted some more commentary on downtowntrader.com for those interested.

Good Trading,


Joey

Stock Chart Analysis LEH

Lehman Brothers Holdings Inc. (Public, NYSE:LEH)

Financial Stocks have been under performing throughout the recent rally, and should lead the way lower on the next downturn. LEH's chart is interesting as resistance is clearly defined, yet the lower boundaries of support are still open to much interpretation. It looks like the $49-50 is the clear ceiling until proven otherwise. It looks to me like it may probe for support in the coming sessions as supply seems to be overwhelming demand. I don't know how much lower it will go before buyers step in, but LEH could easily drop 5-7 points from here and still be confined to a trading range. That is over a 10% move from current levels and the stop is manageable as well.



Good Trading,


Joey

for more analysis, check out downtowntrader.com

Stock Chart Analysis PFCB

P.F. Chang's China Bistro (Public, NASDAQ:PFCB)

I'm not sure when or if gas prices will start impacting the consumer, but the first place most will cut back is on eating out at the mid-tier restaurants. The clientele for high end restaurants are usually less impacted during economic downturns, and the cheaper restaurants could have a trickle down effect from consumers looking to curb their spending rather then staying home. I'm not sure how business is doing for PF Changs, or their prospects moving forward, but the chart is showing some possible weakness. It just broke down through a rising wedge which is a bearish pattern. It's bollinger bands have contracted to it's narrowest range in several months and just began expanding again. This could be signaling the beginning of an increase in volatility and with PFCB falling out of a bearish pattern, it looks like the move will be lower. It's also at a point where the stop loss is clear and risk is minimal compared to the possible reward. I would prefer an entry near the declining 20 day sma, but it may not give that chance. Of course, a lot depends on the markets the next few days.




Good Trading,


Joey

for more analysis, check out downtowntrader.com