Featured setups from Monday March 7, 2005 closing data symbol scan
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Notes for the Day
Question of the day – now that many stocks have been pushing up for several days and more folks are long than not, is there anyone left to buy to push prices higher?
See also In The Event of Pull Back for my stop management plan.
Long Setups
General common strategy: Unless noted otherwise, buy stop just above the “high” value, with an initial protective stop at the low value of the bar, not below the bar.
Retracement or Pause in Up Swing / Up Trend
SWY – after retesting the 2005 low SWY moves up and offers a pause here; note also the gap up on Monday – gaps are both a sign of strength and exhaustion. More often than not they suggest a swing turn is near at hand, but once in a while they indicate that there is more underlying interest in a stock than first is obvious. If stopped long into SWY demand that price clear the Monday high and close strong before considering holding. Initial target marked in red overhead.
Golds
What’s very clear is that Gold stocks are showing BIG divergences in performance. FCX and ABX have been true stars now for weeks, while many others in the market have lagged significantly. First, the laggards – if Gold holds the gains its been making recently these may offer some quick upside:
BGO
PDG
GFI – barely broke the lower trendline, stalk a long above yesterday’s down bar)
ABX sold off some yesterday at a test of top. For the time being we need to stalk a new long entry; I continue to hold this and will until 24.
Special Situations
MU – long or short – be on guard for an outside day today as TXN news hits tech. Sometimes these turn into interesting opportunities for stocks positioned to go up while industry news rocks the boat.
MOT – short – similar in some respects to MU – but I can picture this triggering shorts and going no here, only to break the decending wedge at some point in the not distant future. Tech is at a cross roads here, in my opinion.
05.03.08 09:27 #