Looks like a flat open today. Let's see if we can break out of the recent trading range. I'm not holding my breath though...
Potential swing trades:
See one of the recent 'Chart Reading' posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
TTWO -21% (receives subpoenas related to hidden scenes in Grand Theft Auto: San Andreas; also CIBC downgrade), MRVL -8.3% (to buy Intel processor unit), HOM -4.5% (Nasdaq listing delayed), PANL -4%, MT -3.2% (to finalize deal with Arcelor), DD -2.5% (Vivendi sells DuPont stake), VE -2.3%, CEPH -2.2% (Gabitril data did not reach statistical significance), SHPGY -2.2%, GFI -1.7% (profit taking after recent momentum), PDCO -1.6%, TIE -1.5%, DNA -1.4% (Roche stops Avastin trial), SAP -1%... Under $3: VTSS -14% (stock to be delisted).
Gapping Up
UVN +6.5% (accepts $12.3 bln Saban bid), TRB +6.2% (to buy back 45 mln shares), ESCL +7.7% (note, light volume of 6,000 shares), EXP +6.6% (guides higher), IDIX +6.4%, USEY +6% (momentum), STKL +5.8% (announces deal to expand distribution), XING +4.8% (attributed to report that co's parent plans to enter mobile phone chip R&D; also, co is expected to provide updated data), RBNC +22% (announces merger), PALM +3.9% (RBC upgrade and takeover chatter), BIDU +3.5% (NY Global Securities positive on BIDU; expects big EPS upside), UCO +2.9% (files for IPO of its Universal Compression Partners unit), OMNI +2.3%, LRCX +2% (UBS upgrade), GM +1.8% (announces higher than expected number of employees accepting early retirement offers), NTRI +1.5% (positive TWP comments), HGSI +1.4%, E +1%, INTC +1% (MRVL to buy processor unit)... Under $3: DSCO +22% (sees manufacturing improvements).
Disclaimer & How I use this list
Michael,
Looks like we have a Pennant moving in a downtrend... SPY is breaking on the downside.
It's a continuation of the correction. We just experienced a bear trap. ARE YOU WITH ME??
Ernest
Earnest,
Bear Trap? Don't you mean Bull trap? Or am I missing something?
I too have spotted the pennants. It is quite clear on the DJI, Nas Comp, S&P charts. SPY's breakdown looks ominous for the market in the near future.
In fact, the 3 major indexes have all broken from the pennant on the downside. However, the Nasd Comp never really formed a pennant. It's choppy, but looks more like it's just been trading in a strait trading range from which it has not yet broken. But, the DJI and the S&P500 have broken from a pennant on the downside.
Ordinarilly, I would think this is bearish. I don't see a bear trap here. Please enlighten me. OTOH, however, I think this matters little until the Fed does its thing on Thursday. But then, IMO (FWIW), I think regardless of what the Fed does, ultimately the market will tank. Martin Ping's recent assessment has added on top of my onw analysis. And, although I'm certainly no genius at this stuff, at least I do think on my own (which is probably why I am often wrong).
I agree, it seems like a bull trap to me.
I'd be surprised if the market tanked without bouncing first. Of course it *could* happen but with T2108 still close to 20 I have a tough time beaing a super-bear.
Mike,
I may have gotten your reads wrong however I thought you have mentioned that Death Crosses dont really feature in your trading plan.
An article by Phil Davis this morning goes as follows:
Trader Mike pointed out yesterday that the Nasdaq has made what he calls a “Death Cross†ie. the 50 dma has fallen below the 200 dma. I have to agree that this is a very powerful signal from which few stocks recover. I’m just not positive that indices follow the same rule as an individual stock, but you could easily make the argument that it is more so.
I thought you were saying a death cross is too much of a lagging indicator?
Adam,
No, you got it correct, I think those moving average crosses lag too much to be of any use. They just confirming what we should already know.