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!
Hey Gang:Sorry I missed the meeting Monday, hope those who attended had a great time and shared some good ideas.I'm feeling down (as in the Market) so "Bear" with me. I mentioned in my previous post that I felt the Market was going south. I still belive that, especially with oil prices soaring, gas prices soaring, the housing market is getting really bad, the Fed still has some inflation worries, etc. I have started entering Bearish positions in my portfolio (NOT a recommendation). I have been buying Bearish ETF's, the DOG (Dow) and the QID (NASDAQ). Here are the charts:DOG
QID
You can see on both charts I have my pre-set target prices where I either exit, or move my stop-loss price tighter. Technically, these were good entry days as the MACD and STO were favorable for a rise, and the "bounce" off the diagonal support seemed to give me my "go" signal. I also like this trade now because "Sell In May and Go Away" is just around the corner. If you look back on last year's chart, you'll see what happened then. That is NOT to say it will happen again, but it seems to be the pre-summer trend when the trading moguls retire to the Hamptons for the summer and let the junior traders take over. Hopefully this trend will continue.A caveat about DOG, it isn't as heavily traded as DXD (which is probably a better ETF since it is more "liquid"), so you may want to look into DXD instead.Chris Harding I was told is in a particluar trade I follow (and have done well with) - PCAR. Here is the chart:
Again, one of those Channeling, Bouncing trades (notice I didn't say "stock") I love. Clear, defined Entry and Covered Call signals on an uptrending stock. I am out of this position now, though I have highlighted my anticipated entry area.Some other "favorites" are: BHP, BUCY, CCJ, DVN, FCX, GRMN, PICO, TIE, to name a few.Happy Trading!
