Featured setups from Tuesday May 10, 2005 closing data symbol scan
Jump to: Long Setups | Special Situations
Notes for the Day
Trade numbers are supporting the US Dollar today, after it had been down on “news” from China re the yuan; stock futures up – its probably a now or never day today with yesterday’s lows being the line in the sand that must hold to avoid a fairly significant (or total) retracement of the recent rally.
ETF Trade Example
DIA – if possible find a suitable intraday entry point, as our goal should be to position early to make it possible to hold overnight provided sufficient profit has been built up by the close.
One the short side my plan again is to use ETF’s if the key support levels identified yesterday (or yesterday’s lows) break and hold broken.
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
Tech
PXLW – semis, display chips – while its hard to get excited about this chart rising to overhead resistance, for a single down bar in an up-swing I will stalk a long here,
prompted in part by the 2B test of bottom on the weekly.
SMH – semiconductor ETF, sparked largely by TXN after its positive report a couple weeks ago, SMH is pausing near old resistance, potentially new support here. Can be stalked in both directions, extra caution on the short side as price action has been improving in the group. TXN itself may also be stalked in a similar manner today.
QCOM
Media
LGF – media/entertainment – continuing yesterday’s theme, Lions Gate here has been pausing at a swing high retest.
TWX – follow up from yesterday
CMCSA – follow up from yesterday
Consumer Non Cyclicals
GIS – consumer non cyclical – pause at range test – one try only here. Reasonably defensive sector
CAG – similar to GIS, one attempt only
KFT – folks have to eat – one attempt only. CAG and KFT perhaps have nicer looking charts, GIS consolidation may provide decent lift just the same.
Finance
BNS:C (BNS:NYSE) – thinly traded on NYSE, Bank of Nova Scotia is lagging many Canadian banks but I am going to stalk this consolidation for one attempt here regardless, in part on valuation and despite warnings that banks are not the place to be during a fed tightening – these issues are not quite so pronounced in Canada where all the significant players are national banks rather than regional, smaller, players.
WFC – Buffet once bought this
BAC – testing range highs, stalking one day only
Defense
HON – trendline breakout and first pause
IR – same sector and setup per HON
Electric Utils
AEP
Test of Top – Continuation
TUP – yes, tupperware… pause following range breakout
Special Situations
Off the low-priced shelf:
COVD – buy on break of yesterday’s high being careful to avoid minor wiggles which later reverse – demand price move or re-stalk later or stand aside. Note line off top of tall down bar – this old resistance may hold as new support. Its as reasonable an opportunity to attempt a long in COVD as has appeared in some time.
05.05.11 09:01 #