Tuesday, March 25, 2008

Charts to Watch

Here are some charts I am watching. The first group are the stocks I wished I had entered but didn't of course. They are the strongest stocks I see right now with lots of accumulation, and my gameplan is to enter on any pullback, maybe to the 9 day moving average.

WSCI, OME, BRKR, MTH

The second group are stocks that could be buys right now if they breakout. They are not all perfect in terms of accumulation but their fundies are solid.

BKE, RICK, TITN, GENC

The third group are just some stocks I am watching to see what they do. None of these are really ready right now, but with some more work they could set up to be very nice buys.

MATK, IHS, TECUA, NUS

MCRS, FLO, PHM, MRTN
All Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

I am hoping we get a few more days like today of low-volume, calm action. If we can, the major moves of last week will be digested and stocks would have a good chance of running higher. With both a follow-through day and a bullish turn on the Market Monitor, the right play here is to focus on longs only. Things may change quickly as we approach overhead resistance, and I don't know how long this rally will last, but instead of anticipating, I am going to react to what the market is saying. If we get a quick turn, some distribution, and a reversal of the Market Monitor like we did in late February, then I will react accordingly as well. The last time I went long, I was in those longs a total of three days before being stopped out with very small losses. We'll see if that happens again. I would advise to remain patient, enter into longs with small positions to start that can be added to over time, and have clear exit points in case thing get bad again. Good luck tomorrow.


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