Wednesday, January 6, 2010

Setups I Will Watch Tomorrow

Even though the possibility of a pullback is in mind high based on the number of extended charts I see, it doesn't have to happen, so here are a few I will watch carefully tomorrow.

ATHX, KNDI, KONG, NANO
ATLS, CAR, CYOU, UQM
Charts from Telechart, Courtesy of Worden Brothers, Inc.

8 comments:

Anonymous said...

Hi Mac, you said "Finally, I sold SEED at $13.43 for about an 8% gain - same as others - felt resistance was weakening a bit." Do you mean (1) resistance was reducing its momentum or (2) resistance decreased? Are you seeing its upside in the near term? Thanks!

Mac said...

I think its action the past two days is showing a slowing of momentum - yesterday it got above $13.20 but couldn't stay there and again today, it did the same thing. I was planning on locking profits in anyway, but I just think it might need some rest in the near term. Just my two cents - could be totally wrong.

positiontrader said...

Check out SWC and PAL Mac.

Good Luck tomorrow. BTW, I admire your discipline when it comes to stops. As I know from experience, its particularly hard to take a loss on stocks in which you were way in the green once. I am much better at sticking to stops compared to when I started but still need a painful lesson every other month to keep myself honest.

Mac said...

After a while losses don't become a big deal unless they are big, and if you use stops, they don't become big. Actually, the gains don't become a big deal either - it is just part of the process.

I see many super extended stocks, particularly in the commodity area - HUSA, PCX - two examples besides NEP that are looking parabolic. I actually bought some ERY after-hours - going with a hunch.

positiontrader said...

I see a big pullback coming. But I have been seeing it coming for a long time now!! But luckily, apart from a few misadventures in ultra short ETFs for little losses, I have been pretty much long throughout. And that's what I intend to do until the music stops. But it is gonna happen!!

And I am with you on not playing any leveraged ETFs this year. Somehow, I cant seem to win on those even when I am right?!

I dont see gains as a big deal. But losses still hurt a bit and make me feel like getting right back in to break even, and thats when I make the most stupid mistakes. But, I have got to the stage where a well-executed loss makes me more pleased than a fluke profit. Still not there mentally where you are, but hopefully one day....

Mac said...

I don't see a big pullback, but perhaps a sharp one if that makes sense. One that will hurt all the people that were late to the party on these momo stocks. It doesn't have to happen, but I think the probabilities are above average. Not a bad thing - it would set up more buy points for these leading stocks.

positiontrader said...

Agree on the buy on dips. I dont see a double dip at all. No matter how bad things are, they are clearly not as bad as they were after Lehman or in March. I think the wild card is the U.S. dollar. I will be damned if I have any idea how its gonna play out. If I had to guess, I would say it goes higher as the Euro zone is in a worse shape than us. Wouldnt be surprised to see one of the PIIGS countries come close to defaulting. But I also see the commodities rising in spite of the strength in the U.S. dollar. Go figure that out....

Cheers! Good Luck tomorrow. BTW, I had a look at your after hour stock pick and couldnt figure out what made you get into it :)

positiontrader said...

in NEP at 9.99. might have jumped the gun a bit, but oh well....