Monday, October 23, 2006

Trade Plan for 2006-10-23

Account Exposure: 75%
Cash Position: 25%

Momentum Watchlist

RIMM - a few days of consolidation would do this stock goood. However, the price action from yesterday shows that there are some serious buyers for this stock. Buy point is when price clears $115.25

NIHD - maybe forming the HANDLE and could trade within the range until earnings announcement .

GENZ - the drop after the earning announcement was concerning but the latest price action shows that strong hands are buying this stock. Buy point when price clears a major resistance at $71 area

FMD - high tight flag is forming after a big run-up. Buy point to add to my existing swing position is when price clears $71.70

MTH - despite all the hoopla about the housing bubble, house/construction stock has been fairing better. This would could be forming the right side of a cup and handle base. Buy point is when price clears $48

VIP - High tight formation after run-up indicates more upside momentum is in the works. Buy point is when price clears $64 on a strong volume

ATI - nice looking bull flag but few more days before it moves out of thi range would be good.

CRM - stock is building the right side of a cup & handle base.

PCP - another cup & handle base

Swing Watchlist

Short: VAR MHS

Dummy Watchlist

Short: HCR COH

Market Observations
  • Latest price action for OIL SECTOR and OIL WELL SERVICES suggest that a possible bottom could be in place
  • Ditto for HOME BUILDERS

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