It wasn't pretty yesterday but the indices did manage to hold on to the bulk of their early gains and close higher for the day. The intraday action created a lot of bearish candlestick patterns (shooting stars & hanging men) for the second day in a row. Add overbought stochastic and many stocks being at or above their upper Bollinger Bands and it's clear that this move is getting tired. I'm not seeing a whole lot of screaming shorts though. Most of the stocks I've been stalking are very strong and I'm just waiting for a dip/consolidation to allow me to get long.
Currently holding:
Long - WBSN
Short - AIG
Looking for swing trade entries in:
Longs - AIRT, RSAS
Shorts - BDY, BOL, GM, MTG, TIF, VECO
Potential day trades:
(From Briefing.com)
08:25 Election Movers
Gapping Down
Down on disappointing earnings and/or guidance: DITC -27% (also First Albany downgrade), DIGE -25% (also Wells Fargo downgrade), ADRX -24% (also JP Morgan downgrade), SYNC -19%, ACLS -17%, BOBJ -17% (also Pac Growth downgrade), HOTT -9.3% (also weak Oct comps), MGIC -8.5%, AIRN -8.4% (also Roth and Harris, Nesbitt downgrades), MAMA -7.5%, BVF -6.8%, GYMB -4.7% (also weak Oct comps), NTES -4.5%, QCOM -3.7%, WLDA -2.8%, CEPH -2.8%... Other News: ASYT -19% (postpones reporting Q2 results; Deutsche and Pru downgrades), IPXL -12% (delays earnings report; BofA downgrade), JOSB -10.5% (weak same store sales), AUDC -8.1% (announces convertible offering), LEN -5.5% (sees delays in home closings), BIIB -3% (Goldman downgrade), KLAC -2% (BofA downgrade), AMAT -1.8% (BofA downgrade).
Gapping Up
Up on strong earnings/guidance: ECST +20.6%, TALK +14%, ELOS +9%, HANS +6.5%, TEVA +3.2%..... Other News: PENN +16.1% (to acquire AGY+12%), GIVN +3.2%, TASR +2.3% (Houston City Council approves purchase), MOND +2.3% (co and STZ sign definitive merger agreement), STEM +1.9% (bounce after 24% drop yesterday on 38 mln shares), RIMM +1.3% (Telefonica Moviles introduces BlackBerry Connect in Spain), WTSLA +3.8% (announces financing negotiations).
Mike,
I have enjoyed your commentary over the past month or so that I have been reading your blog. The markets the past few weeks (maybe months) have been odd at best. That is why I believe technical analysts are better prepared for trading/investing than fundamental analysts.
Anyway, the Nasdaq has broken above it's persisting downtrend, but not on a lot of volume. This was probably just pure manipulation these past few weeks by a number of players. It's safe to say, I don't buy the bullish arguments.
Keep up the good work!
Best Regards,
LB
http://www.traderwizard.com/blog/
http://www.securitytraders.com
Thanks Levi.