Trade Plan for 2006-10-18

With market action yesterday, all I can say is CHOP-CHOP!!! Earning season and option expiration usually brings out this kind of price movement. I'm just glad that I moved quickly to more than 50% cash position after a big run up. Currently watching from the sideline for new positions.

Account Exposure: 30%
Cash Position: 70%
Risk/Position:2%

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 which would be next week.

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

CMI - nice looking flag after a big run-up indicates more upside potential for this stock. Buy point at $139

CMG - price is consolidating in a flag pattern after strong breakout from downtrend channel. Buy point at $58 as price clears the top of the consolidation

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

Swing Watchlist

Long: AMGN, FFIV, CBEY,TOL
Short: nada

Dummy Watchlist

Long: FOXH,AMX
Short: OSK

Observations

• Latest price action for OIL SECTOR and OIL WELL SERVICES suggest that a possible bottom could be in place