The picks from this past week were 12 of 20, for an overall gain of 149%. (12.42% compounded)
So as this latest week came to a finish, the market finally took a breather. The main tumble came on Monday and Friday, with not much movement the rest of week. Here's the latest chart:
As you can see, I've drawn a new channel in which I expect the Dow to trade. I'm a new buyer over that 8,800ish level, but a continued seller if we break down below 8,500. I left the RSI on the bottom of this chart tonite too. We are back at that crucial 50 level, and I'm just kind of hoping now is the time it breaks down. Eventually it is going to have to happen...that's just the normal market conditions. The longer we stay here, the longer we are going to have to wait to see the 9,000's. I don't know about you, but I'd rather see it earlier than later.
Okay, let's move on to some picks to watch for tomorrow...here's what I got:
TSTR - You'll notice on Thursday that I said I wanted a buy on the breakout here, but I will also be ready for a short soon after. Well, now is soon after...so let's watch for it. Reserves some shares and wait for this sucker to go negative and watch people take some nice gains and sell it off strongly.
WPTE - This stock was high flying not too long back and it really looked like a nice short. It did end up falling back a good amount, but on Friday it got another quick surge. I'm a seller of this one just as much as the first spike.
IFON - I know I've mentioned this name before as a breakout type play. It was really off to the races yet again on Friday. I'd wait to purchase this sucker on some panic morning selling around the $1 mark soon.
MTXX - Yeah, this small company will most likely get hammered with lawsuits in the coming months after they had a recall of one of their drugs that could have caused a loss of smell. That's not a good thing. I think this is a sell under 5.50 on its way to 2.50 soon.
BIDU - If you check out the weekly chart on this sucker, the move has just been ridiculous. I might consider picking up some 6-month put options at this point. Sometime it is going to have to come back a bit as the company's business isn't getting this good over that short amount of time. It's simply a momentum play that should check back soon when the overall market does also.
And here's a video for the road...
MK
2 comments:
hey MK what do you think of MEDX and BMY for tomorrow. Check out my post explaining why.
http://stockingpockets.com/market-views/hot-stock-watch-bmy-and-medx
I think they should be very interesting to watch tomorrow if they are anything like the swine flu stocks. I think the potential for good gain trades is there.
MEDX had an interesting move this morning at the open, but it really sold off throughout the day. it was a bad day for the market...can't expect much to stay up. i think it comes back even more though soon. if you really like the story, an entry should present itself after some more selling.
MK
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