Hey Gang:Just a quick FYI...there seems to be a incoming tide into Oil and Gas Operations ($OILPRD) as there has been a heavy flow of institutional money into the sector recently. Here is a quick snapshot of the Big Chart on VLO.
The sector was at a low of "0" back on 2/2, but now it is at "86." That is a sector rotation if I ever saw one. Perhaps with summer driving season coming up, they are looking at the refiners like VLO, TSO and company?Happy Trading!
Hey Gang:CCJ is "En Fuego," the stock is just a machine right now. Uranium prices are soaring and CCJ is benefitting nicely. So today, the stock broke through the Ascending Channel I drew so now what can we surmise from the chart? Let's take a look:
It looks like the stock has found a new base to jump off from (see Blue area), so we could (not a recommendation) buy here, and set a 1% Swing trade trailing stop and see how high this could go.Let's look at yesterday's suggestion, ZHNE. I stated that there was heavy insider buying, and a classic three Green Arrow signal. I got in today, so let's see what happened: 
BIG pop relatively speaking. Sure, it was only $0.16, but on a $1.33 stock, that represents a 12% move. That's pretty big, and look at the volume the last two days. The stock also smashed through the 200 DMA which now becomes support. Something BIG seems ready to happen here, hopefully something GOOD!A couple of more plays I am interested in:BBY
SBUX
Until next time...Happy Trading!
Hey Gang:A few days ago I mentioned CCJ as a play that was following a chart pattern I set up to try and predict its movement. I even showed a Bearish Engulfing Pattern as possible evidence that a downturn may be imminent, along with the STO and MACD. Well, after two somewhat blase days, the stock popped up almost $2 on some good news from the Canadian government, as well as some pumping on CNBC. Had I been in a short term Bearish play (which I was not since I don't play the bearish side of a swing trade when the predominent trend is Bullish), I would be getting near my stop-loss of 1% above the high on 4/10/2007 which is $47.97. Here is the chart:
The trade still hasn't broken above the upper resistance line yet, and the stock is still oversold with a falling MACD, so let's see how it plays out. Ideally, I want to enter this trade where I have placed a green oval, which is at the channel support line.Into the ZHONEEvery once in awhile when I peruse the Yahoo! Finance message boards, I come across a suggestion that piques my interest. On Friday, someone mentioned Zhone (ZHNE), a company I had never heard of. The post mentioned that there was significant insider buying, and the stock made a significant move, so I checked it out and here's what I found:
So here is a CLASSIC INVESTools (technical) entry signal IMHO, three (3) Green Arrows on BIG volume on an uptrending stock. By the way, did you notice the stock price of $1.30? Even better, this is NOT an OTC stock or one of those "Pump & Dump" spam mail stocks you get. This is a NASDAQ listed company, so to me that says "legit." How about the insider buying? Check this out:
So as you can see, there has been some decent amount of insider buying recently which may bode well for the future. If the top brass is buying stock on the open market, they obviously believe something good is going to happen in the future...they are betting their own money on it.Just something to consider.Happy Trading!
Hey Gang:Every once in awhile, a chart I set up to predict its movement goes "perfect." If it does what I anticipated it would do, which gives me some confidence to trade it. Take a look at CCJ. I initially set up my Ascending Channel by using the bottoms of 11/17/06 and 3/5/07, then moving to the top of 12/14/06 to complete the Channel, then "extend." Now technically, a line is supposed to connect three (3) points to be legitimate, but I do this method a lot to try to establish a pattern. In this case, it may have worked. Today the stock began at the Resistance line and has fallen off all day. You'll note the stock has been overbought (high STO) for awhile, and the MACD has started rolling over and heading down.
You'll also notice a Bearish Engulfing Pattern which I have circled in blue. This anticipates more downside is coming, more possible confirmation that a short/put may be a good play.
You could short this stock now with a good Reward/Risk ratio since the Stop-Loss is 1% above today's high (resistance) and your target is the bottom of the Channel. The Channel itself is over $9.00, so you could hope to capture most of that preferably before earnings. I would not play this over earnings, but get out before.Just something to consider.Happy Trading!
...Until it ENDS!"Hey Gang:As you will note by my last post, I had been somewhat bearish on the market. The trend signals were also pointing bearish, and the economic indicators were also bearish. With that in mind, and my QID and DOG charts seemingly bouncing I got in two trades. On Wednesday, I got out.One of my trading rules is to exit any trade that falls below, and stays below support for two (2) consecutive days. That happened on Wednesday. Here are the charts:DOG
QID
For me, it is okay to be wrong, but never okay to second guess if the market will do what you expected it to. In this case, I expected the market to go down (and UP on my Bearish ETF's), it did not, so I abandoned the positions for small losses and have moved on.So now what? Well, we are coming into Earnings Season, always a tricky time to play stocks especially over Earnings. So if I can get into some plays that I see reaching a peak BEFORE earnings, I may play them. I have some of my favorite trades that are still overbought from when I was taken out in March (look at BHP, CLF and DVN...), so i need to be patient for a pullback before I can think about getting in. HUM which was a previous suggestion by a member is doing well. I did get into a small position on GRMN, which I saw as bouncing at the bottom of a very high Ascending Channel which made the reward/risk ratio pretty juicy:
I'll let you know if I have any other trades i am looking at playing when I come across them.Happy Trading!
