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Issue #119 
April 19, 2009 | Newsletter
The newsletter with chart analysis for stocks and stock indexes |
Stock Indexes Analysis/Evaluation
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| Indexes Continue Rally, but Show Limited Results.
DOW Friday close at 8131
The DOW maintained its upward momentum and once again managed to close higher than the previous week. It has now been 7 weeks in a row, since the low was made, that the index has had a higher weekly low as well as a higher close than the previous week. All the news that came out this week was better than expected and that was the main reason for the continued strength seen.
It must be mentioned, though, that even with all the positive news, the DOW only managed to close 48 points higher than last week. It is evident that upward momentum is getting much more labored and difficult to achieve. Nonetheless, based on the ability of the index to make higher highs than last week, as well as close near the highs of the week, it is likely that further upside will be seen this coming week.
On a weekly closing basis, resistance is minor at 8281 and major at 9035. On a daily closing basis, there is minor resistance at 8281 and again at 8375. Above that level, there is nothing of consequence until strong resistance is found at 8934 and again at 9034. On a weekly closing basis, support will now be found at 8001. Below that, there is nothing until major support is found at 6627. On a daily closing basis, support will be minor to decent between 7937-7957, decent at 7790, and strong between 7522 and 7552. Major support is found at 6547.
It is evident that the DOW has been able to establish some form of foothold above the 100-day MA, currently at 8000. With little news of consequence, other than earnings reports, due out this week it is likely that the index will hold the gains accomplished and likely extend the rally for one more week. The Durable Goods report (due out on Thursday) is the only economic report that could have any kind of an impact on the market. It is considered a "B" class report. The other 4 reports (Leading Economic Indicators, Initial Claims, Existing Home Sales, and New Home Sales) are all "C" class reports. As such, it is likely that until Thursday morning the index will be moving more on chart points and earnings reports than on fundamental news.
In looking back at the last recession in 2002, the same kind of a rally as has been seen on this occasion, managed to go up for a total of 9 weeks as well as 1851 points from the low. It is also important to mention that the index is presently in week #7 of this move and that the rally in 2002, from the intra-week high made on week #7 to the high made on week #9, was only 163 points. It must also be mentioned that the high weekly close of the entire rally was made on week #8. On week #9 the index managed to make a higher intra-week high than week #8 but closed in the red signaling that a top had been formed. When factoring in that the DOW has already rallied 1721 points from the low, it can be extrapolated that the possible high of this correction, during the next 2 weeks, will be somewhere between 8321 and 8354.
The DOW had a very small trading range of 320 points this past week. It is likely the stock will be using the 8000 level (7970-8030) as strong support this coming week and that without a catalyst the bears will have trouble getting the index below that level. There is decent resistance, on a weekly closing basis, at 8281 and that level seems to fit in well with what the charts say is a probable trading range for the week, as well as a probable higher weekly close. In addition, it also fits in with what the 2002 chart says could happen, one more up week (week #8 of 9) but with limited highs.
NASDAQ Friday Close at 1673
The NASDAQ turned in the best effort of the 3 main indexes when the index was able to get above and close above an important intra-day high at 1666. In addition, the index was also able to erase the double top, on a daily closing basis, at 1652/1653 that looked ominous. The action seen this past week has opened the door for the index to generate a bigger rally this week than anything that can be expected in the DOW and the SPX.
It must also be mentioned that the index failed to close the gap between 1596 and 1599 that has to be considered a runaway gap. The index does show a possible breakaway gap between 1553 to 1559. Such a formation, when added to the positive break of resistance on Friday, could help generate strong buying in this index this coming week, far and above any seen in the other indexes.
On a weekly closing basis, resistance is strong at 1711 to 1721. Above that level there is no resistance on the weekly chart until the 50-week MA is reached up at 1920. On a daily closing basis, there is no resistance at this time until 1770 to 1780 is reached. The resistance at that level is strong, as there were 2 important closes at that level as well as the 200-day MA presently at 1785. Stronger resistance will be found up at 1844 from the last previous high daily close of consequence seen during the last 6 months. On an intra-week basis, there is minor resistance at 1681 from a high seen in Nov 10th. Above that level, though, there is no intra-day resistance at all, until the 1769-1783 comes into play. On a weekly closing basis, there is decent support at 1552, again at 1530 from a minor weekly close as well as from the 20-week MA. Below that level support is strong between 1476 and 1500 from a psychological basis as well as an important weekly close at 1476. On a daily closing basis, support is decent to strong at 1626, decent at 1562 and strong at 1500. Below that, there is strong support between 1444 and 1457.
The NASDAQ shows no intra-day resistance, other than minor resistance at 1681, for another 100 points higher. Such a vacuum of resistance opens the door for the index to rally strongly this coming week. It must be mentioned, though, that on a weekly closing basis, the resistance between 1711 and 1721 is quite strong. Even though there is no intra-day/intra-week resistance until 1770 is reached, it is possible the index will have problems getting above that level if the other indexes are not participating in that strength.
Much like with the DOW in 2002, the NASDAQ also showed a 9-week rally with the high weekly close seen on week #8 (this past week was week #7). The rally back in 2002 was a total of 413 points from low to high. This rally, starting with the low of 1266, has already gone up 416 points and though it is probable that higher numbers will be seen next week, it seems somewhat unlikely that the index could move up an additional 100 points without additional rallies in the other two indexes.
It is evident that the mid-cap stocks are getting the bulk of the buying at this time and there is no reason to believe that will change this week. The probability of a rally up to at least the 1711-1721 level this week is real. Should it happen, there is a good possibility that on week #9 of the rally, an intra-week high up to the 1770 level could occur. Nonetheless, the resistance up at that level is not likely to get broken. In addition, even if the index is able to accomplish such a rally, the likelihood of the index closing on week #9 below 1721 is high.
I do believe the NASDAQ will be the strong index this week and that drops down to where the double top was, at 1653, will be bought aggressively. Possible trading range for the week is 1653 to 1734, with a close next Friday at 1711.
S&Poors 500 Friday close at 869
The SPX received the most support this week as the positive earnings reports in the financial stocks dominated the action. Every single financial earnings report came out better than anticipated and several of them came in with surprising positive figures. As such, the index was the leader to the upside.
Nonetheless, most of the important financial companies have already reported earnings and therefore it is unlikely the SPX will continue to generate star billing this coming week. In addition, of the 3 main indexes, the SPX is the only one that is showing strong and important chart resistance levels near-by. As such, it is unlikely the index will be able to generate the kind of positive upside movement that could be seen in the NASDAQ, or even on a smaller basis, in the DOW.
On a weekly closing basis, resistance is very strong at 868-872 from two previous low closes of consequence as well as the last high weekly close. Above that level the next weekly close resistance is found at 931. On a daily closing basis, there is decent to strong resistance at 869/874. Above that there is no strong resistance until 934. On a weekly closing basis, support is decent at 825, strong at 800, and then nothing until major support is reached down at 683. On a daily closing basis, support is minor at 841 and then again at 815, decent to strong at 805, and again at 787. Below that level, support is strong at 752 and major at 676.
As mentioned above, the index will probably lose its star billing this week. In addition, the index has now fulfilled most, if not all, of its short-term chart objectives to the upside. Under these conditions, the SPX will likely have much more problems rallying and generating the kind of upside movement that the other 2 indexes might have. It definitely the index to watch closely for clues as to what to expect in the market. Further upside, above 878, will likely be indicative of strength above what has already been anticipated.
It is evident that if the SPX is able to get above and close above the 878 level, on a daily closing basis, that rallies up to the 930 level could occur. If that were to happen, the 8300 objective in the DOW would have to be strongly raised, making the possibility of that index reaching near the 9000 level possible. It is therefore important to keep a close eye on the daily closes of the SPX in view. On the other side of the coin, if the index is able to close lower next Friday, it that would be a clear signal that a corrective phase has begun.
Possible trading range for the week is 838 to 878, with a close next Friday at 874.
Based on the positive news that came out this week as well as on the positive close seen on Friday, it seems likely to expect further strength this week. With no reports of consequence until Thursday, other that earnings reports, the momentum as well as positive feelings in the market will likely keep the indexes supported for most of the week. The market is laboring to go higher, though, as even with positive reports the action has slowed, the volume decreased, and the upside movement diminished.
This week the biggest bulk of earnings reports will be seen. It must be noted that the large portion of the companies that have already reported have come in better than anticipated. Nonetheless, with so many companies coming in ahead of analysts' forecasts, there is a danger that traders could start to hit the "sell" button if companies that jump a low hurdle no longer impress them. If that happens, the indexes will start looking at the fact that no support levels of consequence have been built and that most of the good news has already been factored into the prices. At this time, it is more about where the buying ends than where the selling begins.
This week, other than a large bulk of earnings reports, there is little in the way of news that could affect the market strongly. As such, the action should mimic last week and trade sideways with a very slight upward bias. Nonetheless, the earnings reports could be a catalyst and if there are any big surprises, due to the overbought condition, it is more likely to generate downward than upward movement.
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Stock Analysis/Evaluation
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CHART Outlooks
It is probable that the indexes are close to reaching a temporary top to this rally and that further upside action will be limited. Many stocks have already had strong upward rallies and have begun to top out, or in some cases correct. This is a week for only sales. Nonetheless, it is not likely a week where immediate results of consequence will be seen.
HON (Friday close at 31.04)
HON, much like the DOW, has been in a strong weekly up-trend since the low at 23.10 was made back in March 9th. The stock has not yet had any kind of re-test or correction to the 6-year low made at that time. Nonetheless, the stock is now nearing a level of strong previous resistance that is likely to generate selling and cause the stock to begin a correction downward.
With the indexes likely continuing upward this coming week, HON is also likely to reach levels where a sell position could be instituted with a good profit potential, limited risk, and high probability of success.
On a weekly closing basis, resistance is minor to decent between 31.97 and 32.21 from two previous weekly low closes, decent at 33.44 from the most recent high weekly c lose and very strong at 34.66 from the highest weekly close seen in the last 6 months. On a daily closing basis, resistance is strong at 32.80, strong again at 33.44 and 33.71, and major at 36.04 from the highest daily close since October, as well as from the 200-day MA. On an intra-day basis, resistance is strong at 33.10 from a high seen back in Jan 14th. On a weekly closing basis, support is minor to decent at 30.45 from a previous high weekly close as well as from a psychological basis. Strong support is found at 27.16, strong again at 25.38, and major at 23.60. On a daily closing basis, support is decent at the most recent daily low close at 30.31. Further minor support is found at 29.09/29.28, decent again at 27.81, and strong at 26.22/26.95. Major support is found between 23.22 and 23.67.
The stock has been rallying in conjunction with the indexes but still has a bit more to go to the upside before reaching the levels where strong resistance is likely to be found. There was an intra-day high at 33.10 in January (32.80 on a daily closing basis) that is a very probable objective. With further upside expected this week, it is likely that HON will be reach the 32.80/33.10 level, where the risk is minimal, the profit potential good, and the probabilities of success on the short position high.
The stock does have an open gap between 28.52 and 28.81 that will become an immediate magnet once the stock has reached a level where the selling begins to gain strength. In addition, below the psychological support level at $30, the stock has no weekly support level of consequence until the $26 level is reached. Such, a move down would fulfill the need for a retest of the lows as well as a correction from the overbought condition the stock is presently under.
Sales of HON above 32.75 and placing a stop loss at 34.10 and having an objective of 26.02 will offer a risk/reward ratio of 5-1.
My rating on the trade is a 3.5 (on a scale of 1-5 with the strongest probability rating being 5).
KO (Friday close at 44.99)
During the last couple of weeks KO has been having trouble generating further upside after the stock rallied aggressively for a period of 5 weeks from the successful retest of the low made in 2002 at 37.01 (stock dropped to 37.44 in Feb). The stock seems to have hit a brick wall 2 weeks ago when it got up to the first decent resistance level at 46.00. Over the last 2 weeks, in spite of the strength in the indexes, that stock has attempted, on 2 different occasions, to break above that level. So far it has been unsuccessful.
As it is, the resistance that starts at 46.00 and goes up to 47.53 has been not been violated during the last 6 months, even though the stock has attempted to go higher on 12 different but clearly defined occasions. It is difficult to imagine any reason why the stock would be able to generate any kind of movement above that level, at this time, without some major fundamental change.
On a weekly closing basis, resistance is strong at 45.90/46.27 and very strong at 46.87. On a daily closing basis, resistance is minor at 45.34 and strong at 45.90. Above that level, resistance is copious and very strong between 46.02 and 47.26. In addition, the 200-day MA is currently up at 46.80 giving that area added resistance. On a weekly closing basis, there is minor support between 44.00 and 44.43 from two previous weekly closing lows. Below that level support is decent to strong at 42.20 and strong at 41.61. Major support is down at 39.10. On a daily closing basis, support is decent to strong between 43.82 and 44.21 from 5 closes in that area including the 2 most recent ones. Additional support will be found at 43.60 from the 100-day MA. Below that level, support is very strong between 40.67 and 41.07.
The resistance seen in KO up in the $46-$47 level, is of such strength that it seems highly unlikely the stock will be able to punch through that level without first re-testing the previous lows. In addition, the stock has had a lot of problems even getting to 46.00 as the high for the last 2 months has been 45.83. The stock does have its earnings report coming out on Tuesday and that may be a catalyst. Nonetheless, earnings reports in KO have often been non-eventful due to its establish worldwide presence as well as consistent sales. As such, it is unlikely the stock will generate much movement upwards at this time.
It is important to note that since the year 2000, the stock has clearly pivoted around the $45 level on several occasions, and during the period between 2004 and 2006 the stock was unable to get above that level at any time. Having gotten down to the $37 level this time around, it seems unlikely the stock will be able to head any higher without first retesting the lows. The question at this time, then, is whether the stock will be able to get up to the $46-$47 level first, or whether the inability to break above 46.00 will cause the correction to start now.
Sales of KO above 45.68 and using a stop loss at 46.89 and having an objective of 41.07 will offer a risk/reward ratio of 4-1.
My rating on the trade is a 3.5 (on a scale of 1-5 with the strongest probability rating being 5).
BA (Friday close at 38.32)
BA, 6 weeks ago, tested the 13 year support level between $25 and $28, built during the last recession in 2001-2003, with a drop down to 29.05. After the stock tested that level, it generated a short covering rally that took the stock back up to a very strong psychological resistance at $40 with an intra-day high of 39.18 and a weekly closing high of 39.15. Nonetheless, last week the stock started to show some weakness with a lower low than the previous week as well as a lower weekly close. Such action, coming at a time that the indexes seem to be within a few days of a top, seems to suggest the stock has done all it is going to do to the upside for now.
The inability of the stock to get up to and above the strong psychological resistance at $40, seems to suggest that the upside move has run its course and that a move back down to test the support levels below is coming.
On a weekly closing basis, resistance is decent to strong at 39.20-39.58 from two previous low weekly closes of consequence as well as from last week's high close. Above that level, the next resistance is not found until the 42.97 level is reached. On a daily closing basis, resistance is decent 39.15 (most recent high daily close as well as 100-day MA. Above that level, the $40 level must be considered decent psychological resistance, and then nothing until 42.92-43.24 is reached. On a weekly closing basis, support is minor at 32.55 and major at the low weekly close at 30.10. On a daily closing basis, support is decent to strong between 37.05 and 37.11, stronger at 35.44 from a previous daily low close of consequence as well as from the 50-day MA. Below that there is decent support at 32.55 and major at 29.34.
BA now shows a successful retest of the $40 level with a close last week at 39.15 and a red close this past Friday. Due to that successful retest, the $40 level has now gained more resistance strength. In addition, the stock has been unable to get above the 100-day MA over the past 2 weeks (now at 38.85), even though the stock has tried on a couple of occasions to do so. The supports at 37.00 and then again at 35.50 are of decent strength and will probably hold any small dips that may happen. Nonetheless, should the indexes get into a full-blown correction and retest of the lows, it is likely that BA will break those supports and head down to at least the 32.50 level.
It is important to note that BA does report earnings on Wednesday. As such, sales should be considered only if you are willing to take on the risk of a fundamental change.
Sales of BA between 38.60 and 38.90 and using a stop loss at 39.28 and having an objective of 32.50, offers a risk/reward ratio of 10-1.
My rating on the trade is a 3.5 (on a scale of 1-5 with the strongest probability rating being 5).
PKX (Friday closing price at 78.62)
PKX has been on a strong rally for the last 6 weeks, much like what has been seen in the DOW. Nonetheless, the stock is nearing a very strong resistance level that at this time will likely be difficult to break without fundamental or index help. In addition, the stock has run up almost 60% from its recent lows and finds itself in a very overbought condition.
Two weeks ago the stock had its earnings report and it was not good. The stock saw strong selling come in the following day due to the report, but the stock was able to recover and generate a rally because of the strength of the indexes, as well as from the failure to follow through on the negative report. Nonetheless, the outlook for the steel industry is still not good and if the indexes start to falter, it is likely the PKX could be one of the strongest stocks hit.
On a weekly closing basis, resistance is strong at 78.44. Above that level there is nothing until the 100-week MA is reached up at 91.50. On a daily closing basis, resistance is very strong at 79.11 and again strong at 81.29. On an intra-day basis, resistance is strong at 79.30 from the 200-day MA, strong again at 81.36 from 2 previous highs in January at that price, and then strong again at 82.75 from the highest level seen since Oct 3rd. On a weekly closing basis, support is minor at 72.26 and then nothing of consequence until decent support is reached at 61.60. Below that level, there is decent support at 53.31 and very strong at 50.17. On a daily closing basis, there is minor support at 72.23 and a bit stronger down at 69.23. Below that there is some decent support at 64.90 and then strong support at 61.49.
Having had a negative earnings report just a few weeks ago, it is evident that this recent rally has been more about the strength in the indexes than the strength in the company. The stock is now nearing the 200-day MA at 79.30 as well as the highest high since October 14th at 81.36. In addition, the $ 80 level must be considered a strong psychological resistance. The stock is also overbought and without any support levels of consequence built nearby. The stock has confirmed, through a successful retest, that the lows made in November are not likely to be tested or broken. Nonetheless, drops back down to the $59 to $61 level are possible and perhaps even probable.
It must also be mentioned that the stock does show an open gap between 52.90 and 54.65 that could become a magnet if the stock fails to stay above the $60 level on any correction. With a clear and strong resistance level above, 60% rally over the last 6 weeks, and no support of consequence nearby, sales of PKX offer a very good risk/reward trade.
Sales of PKX between 78.98 and 79.30 and placing a stop loss at 81.46 and having an objective of 59.19, will offer a risk/reward ratio of 8-1.
My rating on the trade is a 4 (on a scale of 1-5 with the strongest probability rating being 5).
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Updates
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| Updates on Held Stocks
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Open Positions and stop loss changes
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| NUAN has been the recipient of many rumors stating the company is a likely takeover target by one of two large multinational firms (CSCO and MSFT). Due to these rumors, the stock saw strong buying coming in at the end of the week and slice through a resistance level of consequence at 13.46 without even slowing down. It is evident that due to these rumors, the traders are not being aggressive on the sell side. As such, there is little that can be depended on as far as chart points are concerned. Nonetheless, the stock does show, on a weekly closing basis, strong resistance at $15, both from a psychological basis as well as from previous 2 previous high closes and 2 previous low closes of consequence at that level. In addition, the 100-week MA is currently trading at 15.50, giving that area added resistance strength. On an daily closing basis, s support will now be strong between 12.19 and 12.34 but since the stock has gone above and closed above the 13.46 level, it is evident that level will offer support as well. On a daily closing basis, there is decent resistance between 14.02 and 14.09. Nonetheless, at this time and until more information comes out about the rumored takeover, there are no levels that can be depended on to support or resist the stock. NTES, after taking a one-day intra-day reversal retest of the $27 breakout level, received strong buying when the indexes were able to break their previous highs. The stock rallied all the way up to the 31.25 level but was unable to generate any further upside movement on Friday and ended up closing near but above the psychological resistance level at $30. Nonetheless, the stock has now generated 7 weeks in a row with higher weekly closes than the previous week's close and has yet to retest the breakout area, on a weekly closing basis. With the possibility that the indexes may be topping out over the next week to 10 days, it is likely that the stock will be unable to go much higher, if at all, and that moves back down to test the breakout area at $27 level will soon occur. Support is now decent at Wednesday's low of 27.25. KGC was under pressure all week as Gold has been unable to get back up to the psychological support level (now resistance) at $900. Much of the weakness is due to the positive rally in the indexes that has generated money moving back from Gold into stocks. Nonetheless, KGC has been able to hold above several important support levels and has yet to give a strong sell signal. On Friday, the stock closed at the 200-week MA, currently at 13.92, as well as at 2 important weekly closing supports at 13.56 and 13.78. It is evident, though, that any further downside, on a daily or weekly closing basis, will be seen as a negative. A daily close below 13.51 or a weekly close below 13.58 would be seen as a breakdown of the stock and likely of Gold as well. On an intra-day basis, drops down to 13.08 are still possible but the stock should no longer see daily closes much below Friday's close. The $15 level, on a daily and weekly closing basis, is now resistance. By the same token, any closes above that level are likely to mean that the downside movement is over. JNPR was one of only a handful of stocks that closed in the red on Friday. Unfortunately the stock was still able to close above the previous week's close at 18.34 and did not give any clear notice that the rally is over. Nonetheless, the strong weekly close resistance between 18.39 and 18.74 held up, in spite of the fact the stock one day earlier was trading substantially above $19. Such a drop in price, on a day the indexes were strong, is likely a strong indication that the stock has found the top of its rally and that further upside will be difficult without substantial help from the indexes. It is also important to point out that on Friday the stock got up and closed slightly above the 200-day MA at 19.10 with a close at 19.19. Nonetheless, with the red close on Friday, that high must now be considered a successful retest of that line, of the previous 6-month high close at 19.98, as well as of the $20 psychological level. It is now likely the stock will be under selling pressure unless the indexes break above their resistance levels. Support will be found at 18.01 and then again stronger between 16.25 and 16.64. TRA attempted to rally above the high made 3 weeks ago at 30.09 with a rally up to 30.00, as well as with a break above the 200-day MA. Nonetheless, on Friday the stock was under strong selling pressure, and closed not only below the 200-day MA, thus negating the upside breakout, but also closed in the red making Thursday's high daily close at 29.55 into a successful retest of the previous 7-month high close at 30.09. The stock has now shown that the $30 level must be considered strong resistance but that the probabilities have now shifted toward the stock heading lower from here. Any close next Friday below 27.40 would be a strong sell signal on the weekly close chart, as well as confirmation that the upside is over. STP was able to continue the rally that started 7 weeks ago by closing on Friday above last week's close of 14.40. Nonetheless, the stock had quite a bit of problems during the week trying to get above a minor intra-day high resistance at 15.45 and at the end of the week was unable to give notice that further upside could be expected. It must be mentioned that there is no resistance of consequence on the weekly chart until the $20 level is reached and on the daily chart until the $18 is reached. It is therefore worrisome that the stock had problems going substantially higher this past week. Support, on a daily closing basis, is at 12.66 and resistance at 15.09. Probabilities still favor further upside, but close watching of the action this week is warranted. LEN, based on the rally in the indexes as well as some positive reports on home building, was able to generate a decent rally this week. Nonetheless, the stock has reached levels of resistance that will be difficult to break without further good news or further strength in the indexes. The stock got up to the 200-day MA at 9.50 and closed at a strong previous resistance level, on a daily and weekly closing basis, at 9.30. The chart is now set up for failure unless there are surprises in the indexes this week. Support will be found at 8.11 and then again between 7.69 and 7.78. Stronger support is found at 7.13. Any daily close above 9.76 would be a positive, while a close above 10.26 a buy signal. GE got up to a resistance level that should be hard to break. The 100-day MA is currently up at 12.77 and there is also a previous daily low close of consequence at 12.84. In addition, the 20-week MA is currently at 12.60 and also acting as resistance. The company did release its earnings report on Friday and because of it was able to generate a positive day. Nonetheless, the failure to get above the resistance levels above mentioned has to be considered a negative as the only thing that will help the stock go higher now, will be the indexes. No support whatsoever has been built on the weekly chart and that means there is no level that can be counted on, above the low weekly close at 6.66, to supply strong buying if the stock starts to head down. Support, on a daily closing basis, is minor at 11.51 and then stronger at 10.64/10.83. Good psychological support can be expected to be found at $10. Resistance, on a daily closing basis, is found at 12.64 and again at 13.50. There is decent intra-day resistance at 12.90 and if that area is broken, it is likely that the stock would be heading higher.
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1) HON - Purchased at 29.51. Liquidated at 30.27. Profit on the trade of $76 per 100 shares minus commissions.
2) KGC - Purchased at 13.65. Averaged long at 15.15 (4 mentions). No stop loss at present. Stock closed on Friday at 13.79.
3) BAC - Purchased at 9.18. Liquidated at 11.18. Profit on the trade of $200 per 100 shares minus commissions.
4) PDCO - Purchased at 19.38. Liquidated at 19.72. Profit on the trade of $34 per 100 shares minus commissions.
5) STP - Purchased at 13.86. Stop loss at 12.56. Stock closed on Friday at 14.75.
6) NUAN - Shorted at 12.74. Covered short at 13.57. Loss on the trade of $83 per 100 shares plus commissions.
7) NTES - Shorted at 30.21. Averaged short at 28.27. Covered shorts at 27.62. Profit on the trade of $195 per 100 shares (3 mentions) minus commissions.
8) GE - Shorted at 12.71. Stop loss at 13.00. Stock closed on Friday at 12.36.
9) NTES - Shorted at 28.98. No stop loss at present. Stock closed on Friday at 30.12.
10) JPM - Shorted at 33.82. Stop loss at 34.25. Stock closed on Friday at 33.26.
11) PKX - Shorted at 76.63. Covered short at 77.52. Loss on the trade of $89 per 100 shares plus commissions.
12) TRA - Shorted at 28.86 and at 29.84. Averaged short at 29.35. Stop loss at 30.19. Stock closed on Friday at 28.19.
13) JNPR - Shorted at 19.28. Stop loss at 20.20. Stock closed on Friday at 18.49.
14) LEN - Shorted at 9.41. Stop loss at 10.09. Stock closed on Friday at 9.34.
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The opinions and commentaries by Mr. De Vito are not a recommendation to buy or sell, but rather
a charting guideline, based on his own knowledge and experience, regarding the stocks he is following or
that are brought to him by others. Mr. De Vito does not presently offer a track record of his trading experiences.
No inference of success and/or failure should be assumed. The
information enclosed above, regarding his background, length of trading, and experience, is correct
but is not meant to suggest, state, or infer any future success in trading, based on his opinions. The information herewith included should only be used by investors who are aware of the risk inherent in securities trading. Mr. De Vito accepts no liability whatsoever for any loss arising from any use of the information and/or comments he supplies. |
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