Wednesday, March 26, 2008

Charts to Watch

After going through my scans, I found no new interesting longs. BKE still has max BOP and looks good although it pulled back a bit today. There is a pretty clear trendline there for support, and if it breaks above $48.50 and the market cooperates, I think it could be a nice long. I am still watching the recently hot stocks like OME, BRKR, and WSCI for orderly pullbacks to possibly enter into these stocks - I don't know if we will get them. If you look at a stock like TITN, which I showed yesterday and looked decent, it reminds you that things certainly aren't perfect out there and caution is needed.

I am getting my short watchlist ready just in case we head lower from here. I don't have time to analyze all of these but if you follow my blog you should probably be able to tell why I am watching them. If you have questions, feel free to ask.

Charts from Telechart 2007, Courtesy of Worden Brothers, Inc.

Tomorrow the year-end GDP figures and initial jobless claims are due before the open, and I am guessing that will drive the trading significantly. I think we are reaching a point where this rally kicks into a higher gear and we move higher to challenge overhead resistance, or it fails and we head much lower. I can't see us just sitting here for the next few days. The lack of volatility the past few days has been a nice change of pace, but I don't know how long it will last. We shall find out. Keep your mind open to both sides of the market right now and be ready to act when the market shows its hand a little more. Good luck tomorrow.

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