Thursday, May 28, 2009

Looking for Possible Longs if We Breakout

As I stated in the earlier post, it is always good to be prepared during consolidation periods and that is what you should be doing right now - watching out for stocks that have consolidated nicely after huge run-ups in case we do breakout on the indices in time. Here are some I am watching, although to be honest, I wish there more setups occuring. Many of the really strong stocks of the past month and a half just continue to grind higher and won't rest. I guess that's good if you are in them, but it also sets them up for sharp pullbacks instead of nice, calm ones. I don't see that many nice bases forming, especially after a month long consolidation. Maybe I am just too picky. This weekend, I'll share some of the shorts I am watching as possibilities if we breakdown. Good luck Friday.

CVGW, PNK
OCN, WFC
PRU, WPZ
RUTH, LVS
GIL, THC
ALL CHARTS FROM TELECHART,
COURTESY OF WORDEN BROTHERS, INC.

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