Saturday, April 5, 2008

Some Weekend Charts and Reading

Here's a few stocks to check out for the weekend. A few of these still need work, but some are buyable if you are so inclined. It is best to remember that we are fast approaching resistance on the indexes, and are somewhat overbought here as well(see the first chart), so I don't know if loading up is a smart idea. Be careful and keep your discipline to enter these stocks properly - in stages with only half-positions to start, and then add if and as the stocks moves up. This is how all the great traders - Livermore, O'Neil, etc. - entered into their positions, and in a time of market uncertainty, it is even more important to use this strategy to help prevent large losses in case you are wrong. Depending on market action, I may start positions in one or two of these.

S&P 500, Nasdaq
ADEP, GENCKOP, BRKR
BPAX, ASTI
JST, ASIA
MVL, VSNT
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.


I just wanted to post these last two charts just in case the markets fail at the resistance they are quickly closing in on. The fact that we are going into these resistance levels somewhat overbought is probably not the best setup, but I am willing to remain bullish and give the market the benefit of the doubt until I see clear signs we are headed lower. If bearish signals start showing up, these are two stocks(former big-time leaders) that look like very good short setups and that I would be willing to load up on. Once again, that is only if things turn here and it appears we are headed lower, which as of now I do not see.

FWLT
DECK
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

Lastly, I found the latest article from Jim Jubak and he dissects the recent plan from the Treasury department to "fix" any future crises like the one we are in now before they even start. As are most plans concocted by the government, this one seems ill-conceived and short-sighted. What else is new? Good luck and enjoy the weekend.


1 comment:

BUY ON THE DIP said...

nice charts, and insight!

cheers!