Featured setups from Thursday May 12, 2005 closing data symbol scan
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Notes for the Day
Hey, its Friday the 13th!
What a day Thursday was – well, we knew that the market was poised to break down below support; can DELL bring all boats back up above? Seems unlikely, but we are in the exploit the surprise biz, aren’t we?
If overnight there are currency or crude moving developments we’ll look at those sectors in the morning. Weak intraday bounces in energy may also provide opportunities to a) lighten up if you have not already or b) short for aggressive traders.
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.
Test of Bottom – Reversal
RON:C – Canada’s version of HD – reported and with not-bad results really so personally I plan to avoid shorting and will stalk a long another day if it doesn’t play out on Friday.
KLIC – classic 2B test of bottom with a harami bar following the marginal new low – this truly can be played both ways.
MRK – similar to KLIC but this is the bottom end of a range; while the drugs are classically defensive, everyone things so and sometimes everyone is dead wrong. Extra-caution no matter what direction it goes…
Retracement or Pause in Up Swing / Up Trend
QQQQ we can go both ways on QQQQ, provided we can get any shares to borrow for a short; lets be cautious with shorting tech as clearly there has been some rotation going on as of late and tech has been the beneficiary.
MCD, reported, in the middle of its range, and the only oil it uses is for making fries. Like many names which have better-weathered the recent weakness we’ll only want to hold this long if it clears and holds above the two-day high.
Short Setups
General common strategy: Unless noted otherwise, place a sell alert at or just below the low of the setup bar, and look for the first failed intraday bounce after the low has been broken. What we are looking for is price to push down, bounce a little, and fail again – this is where we want to get short.
Retracement or Pause in Down Swing / Down Trend
VRTS – bear flag, classic
PMCS
UIS – single up bar in a downswing gives us a somewhat safer place to play the short here
SBC – stalk short here ahead of a retest of recent lows
FCS
SYMC has sold off so much the natural reaction is to remain cautious or avoid, but everything can get cheaper – bounce on light volume has the makings of a bear flag here
IPG – advertising, in news recently in conjunction with automakers
IQW.SV:C – Quebecor, printers/media – perhaps it needs to bounce a bit more here; time to stalk regardless.
PCA:C / PCZ:NYSE – I can’t often bring myself to short the oil group; there are plenty of other sectors to short that don’t sell products that run the economy – but clearly there is a lot of “hot” money in the sector and its entirely possible momentum will keep hammering prices down until a bad inventory report shows up.
Test of Bottom – Continuation
KLIC – classic 2B test of bottom with a harami bar following the marginal new low – this truly can be played both ways.
Special Situations
Low priced picks of the day… don’t forget to follow up on the past day or two.
ZL:C – rather hated by many in Canada
05.05.12 16:31 #