Monday, June 1, 2009

A Few Charts of Note and Other Thoughts

After going through my scans, I am finding some stocks that interest me. I still have some problems in that I am finding a lot of stocks with very low average volume (below 100K shares per day which I don't like) and still finding a lot of low-priced stocks (which I also don't like), but what can you do? We'll see how this goes and if the patterns keep developing. Some to watch that are new for me - BRCD, UTHR, MIDD, ROSE, and TAM.

Here's one stock in particular to keep an eye on tomorrow. Description in on chart.


Shipping is one area I am also watching closely along with some of the commodity stocks like coal, of which I see many that look poised to break to new highs past their March peaks. The new theme and a very likely reason behind this two-month rally is inflation. The only problem I see with this over the short-term (week or so) is when looking at the dollar, it is in an area where it could get a decent technical bounce, and this would likely cause a pullback in commodities. We'll have to see if that happens - just be careful chasing commodity stocks.

U.S. Dollar

Overall, there is nothing major that I saw that makes me think the bulls are in any need to worry here. I am still confused as to why the financials were so weak today in the face of such a strong rally, but I am done trying to rationalize what this market does. I will be paying attention to the following group of big-caps (MS, MET, USB, GS, WFC, and BAC), all of which lagged mightily today. I think the financials need to participate if we are in the beginning of another leg higher. If they keep lagging like today, I may start to get a bit more worried.

Good luck tomorrow. I will likely be away from a computer so I don't know that I will be able to trade, but just wanted to share these thoughts. Take care.

1 comment:

Giorgio said...

Hi Chart Swing Trader,

I've just read your interesting posts concerning stock market analysis. You wrote that you are finding a lot of stocks with very low average volume. Can I Ask you what do you think about a company which hss listed at the New York Stock exchange and at Franch and Italian stock markets. I thomk the volume surge of theese shares is going to increase.