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Issue #137 
August 23, 2009 | Newsletter
The newsletter with chart analysis for stocks and stock indexes |
Stock Indexes Analysis/Evaluation
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| Indexes - Near Most Analysts Upside Objectives!
DOW Friday close at 9505
The DOW resumed its upward trend this past week and made new 11-month highs, based on the fact the momentum of the market continues and every single dip is being bought by the bulls. In addition, on Friday, Fed Chief Bernake stated that the world economy continues to get better and with no negative reports to refute his words, the traders bought going into the final day of the week.
The indexes received selling at the beginning of the week when the Chinese market took a fall. Nonetheless, with no strong follow through seen in the Chinese market, the negatives of that fall were erased. The market is now moving more on momentum than on anything else and until some report jolts the traders back to reality, the upward trend will likely continue.
On a weekly closing basis, there is no resistance until the psychological level at 10,000 is reached. Above that level, the next resistance would be up at 100-week MA currently at 10543. On an intra-week basis, though, there is a previous high made the week of November 4th at 9654 that does offer some resistance. On a daily closing basis, there is decent resistance at 9625. Above that level there is nothing until 10,000 is reached. On a weekly closing basis, minor support will be found at last week's close at 9321. Below that there is nothing until the 50-week MA currently at 8590. Below that level, very minor support around 8500, decent support at 8296, and strong support at 8147. On a daily closing basis, there is decent support at 9241/9256 and minor at 9071. Decent support is found around 7937 but below that there is no support until the 50-day MA is reached down around 8700.
It was somewhat expected that this past week would show some strength because of options expiration as well as from the fact there were no reports of consequence due out. As such, the upside momentum in the market resumed and with helping comments from Bernake and Geithner the market erased the small resistance that had been built over the past couple of weeks. In addition, the "Clunkers" program was expanded and deemed a success and it gave the market a very positive feeling.
With only minor resistance above, until the psychological resistance at 10,000 is reached, further upside will likely be seen this coming week. In addition, it was a classic reversal week with lower lows, higher highs, and a close above the previous weeks high. Such action almost guarantees follow through to the upside next week.
Nonetheless, it has been evident over the past 3 weeks that upside movement has been labored and that new money is reluctant to come in. In addition, many analysts have begun to recommend taking profits at these levels, and that is likely to increase as the market goes up. With no strong levels of support having been built, the risk to the bulls increases every day and at some point all it will take is some negative report of consequence to open the floodgates to the downside.
It must be mentioned that on the monthly chart, the 9654 to 9732 level has been a very important monthly pivot point over the past 9 years, with that level being a monthly low on 3 occasions (twice in the year 2000 and once in 2004) and a recovery monthly high on one occasion (2008). A such, the possibilities of the high for August being in that area is very high.
It is evident that the first course of action next week will likely be up with first resistance at 9654 (high seen November 4th 2008) and second resistance at 9794 (high seen October 14th 2008). In addition, the 10,000 level is such a major psychological resistance that when the index gets within 3% of that level (9700) selling and volatility will increase automatically. It also needs to be mentioned that these levels being reached in the indexes have been the objectives of many analysts, and therefore the possibility of further upside of consequence will be minimal. If nothing else, reaching these levels should put a strong damper on the bullish momentum that has been hanging over the market for the past few months.
Most everyone is expecting a correction of consequence in September and with only 6 trading days left in the month, the probabilities of selling increasing toward the end of next week is high. One more thing to mention that I believe is important. During the previous 20 years the DOW had never been below the 200-month MA. On this occasion not only did it break that level, but stayed below that level for 5 months, thus confirming the break. Such a negative break is not likely to go untested and with the 200-month MA currently at 8640, the possibilities of getting down to that level by the end of September are high.
Possible trading range for the week is 9654 to 9252, with a weekly close between 9325 and 9370.
NASDAQ Friday Close at 2020
The NASDAQ was also able to make new 11-month highs this past week but definitely trailed the other two indexes, continuing to show that the present strength in the market is more toward the blue chip and financials than in mid cap stocks. On a weekly closing basis, the index does show strong long-term resistance between the 2000 to 2059. As such, this index is likely to be a good barometer of exactly how much more strength exists in the market.
On a weekly closing basis, there are 5 previous closes dating back to 1998 between 2002 and 2059 that signal that area as strong resistance. Above that level, resistance will be found at the 100-week MA, currently at 2074. On a daily closing basis, only minor resistance is seen at 2092. On a weekly closing basis, support is minor at last week's close at 1986. Below that, there is no support until minor support is found at 1859 and strong at 1756. On a daily closing basis, support is now minor to decent at 19.70 a decent to strong at 1931. Below that level there is nothing until 1862 is reached (previous high daily close of some consequence). Strong support is found between 1746 and 1765.
The NASDAQ was able to close above the recent daily close double top at 2009/2011 and also had a classic reversal week with lower lows, higher highs, and a close above the previous week's high. As such, follow through to the upside is likely to be seen this coming week. The 100-week MA is currently up at 2074 and that is a very likely intra-week objective.
Over the past few weeks I have mentioned that the NASDAQ has had problems in the past getting above and staying above the 100-month MA, even when in an established bull market (2003-2007). It must be mentioned that between 2003 to 2005, the index did get above that line on 3 occasions but in each of those occasions the index was only able to go above the line, intra-month, by 80-120 points and the best monthly close on those occasions was by 60 points. On each occasion thereafter the index went down strongly. With the 100-month MA currently at 2000 that would put the monthly close on Monday the 31st, based on past history, at no better than 2060.
It must also be mentioned that the NASDAQ, like the DOW, had not broken the 200-month MA during the previous 20 years, but the index did do it on this occasion for a total of 8 months. Such weakness is not conducive to a continuing rally without being successfully re-tested first. In addition, breaking of that line is indicative of much more weakness than has been shown in previous recessions. As such, until proof is shown and confirmed that the public is back to economic health, it is not likely that the index can go much further to the upside. The 200-month MA is currently at 1850.
Based on what happened this past week, the area between 1962 to 1984 will be strong support. Possible trading range for the week is 2074 to 1984.
S&Poors 500 Friday close at 1004
The SPX has now broken above the previous weekly close resistance around 1000/1017 seen back in 2003, and now has little resistance above to contend with. The momentum has continued to push the index higher with help from comments by Bernake and Geithner regarding the recovery of the economy. In addition, the index also had a reversal week with lower lows, higher highs, and a close above last week's high. Such a strong chart picture suggests that further upside of consequence could be seen this week.
Nonetheless, there is one possible chart event that is still in play for the end of the month (Monday August 31st) that could be a stopper, especially since it was the financial community that caused much of the weakness seen this past year. The 200-month MA is currently at 1017 and since the financial community is not yet out of the woods, it is possible that line will prevent the index from going higher, on a monthly closing basis.
On a weekly closing basis, there is no resistance whatsoever until the 100-week MA is reached up at 1143. Nonetheless, on the monthly closing chart, resistance is strong at the 200-month MA at 1017. On a daily closing basis, there is no resistance until minor resistance is found at 1166. On a weekly closing basis, support is minor at 1004 and then nothing until strong support is found at 879/882. Below that level there is minor support at 825 and very strong support at 800. On a daily closing basis, there is minor to decent support between 994 and 997, and strong at 979. Below that level there is also minor support at 946 from a previous daily high close. There is also minor support at the 50-day MA at 936, and strong support at the most recent low close, as well as 200-day MA at 879.
The SPX has broken above all nearby resistances and though there is minor resistance up at 1044 (October high) the reality is that the index has been successful in breaking above much stronger resistances recently. Based on the chart, the SPX has the most open path to the upside of all the indexes and only the possibility of the 200-month MA, currently at 1017, stopping the momentum exists.
It must be mentioned, though, that many of the financial stocks in the SPX index are at or near important resistance levels (C, BAC, GS, WFC, etc) and if they are not able to break them, it is possible the index will be unable to go higher. It is important to note, though, that the SPX was the first to break below the 200-month MA (something it too had not done for the last 20 years) and the index has been below that level for the last 10 months. The recent rally, as strong as it has been, has only been able to take the index back up to the line at 1017, and therefore from that point of view, the close on Monday August 31st will be important. It must also be mentioned that it is this index that was the leader on the way down and therefore having reached a level of great importance (1000) it is this index that will need to prove the market can go up further.
Possible trading range for the week is 1044 to 994.
In looking at the monthly charts for all 3 indexes and comparing this year with previous recessions and recoveries of the last 20 years, what does stand out is the fact that this one has been the worst of all. The simple fact that all 3 indexes broke aggressively below and stayed below the 200-month MA for many months, has to be a sign that the problems have been, and likely continue to be, worse than anything seen in that period of time. This includes the very bad recession seen in 2000-2002. Putting aside the charts for a minute, it has to be stated that the recovery of the economy has been based more on cost cutting by companies, as well as a lot of smoke and mirrors by the Fed, than on any actual increase in purchasing power of the public. As such, with this likely overdone rally to the upside, the market has the feel of a bubble that is ready to burst at the first sign that things are not as rosy as we have been led to believe.
It is also important to note that all 3 indexes are reaching Fibonacci numbers of consequence with the DOW going up 50% to 9704, and the NASDAQ and the SPX to the 61.8% level with rallies up to 2048 and 1074 respectively. When adding these numbers to the fundamental outlook for the market, it is probably safe to say that there is very little upside left. It can also be stated that chart, technical and fundamental objectives (as stated by many analysts) are being reached and that with such an overbought condition, the possibility of much further upside is extremely limited.
Nonetheless, this coming week further upside is likely to be seen with the DOW likely getting up to 9650/9700, the NAZ up to 2048/2059, and the SPX up to 1040/1044. Nonetheless, keep in mind that September has always been the worst month for the indexes and September is only 6 trading days away from Monday.
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Stock Analysis/Evaluation
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CHART Outlooks
I strongly believe that the indexes will give their last gasp effort to the upside this week and reach the levels mentioned above. There are too many reasons, both chart-oriented and fundamental, to think that any further upside, other than what will be seen this coming week, will occur. As such, it is impossible to give any mentions this week that are purchases.
Nonetheless, sell mentions will mostly incorporate the fact that some upside will likely be seen this week. Entry points are likely to be higher in most cases than where the stocks closed on Friday.
UTX (Friday Closing Price - 58.71)
UTX began a downtrend in June from a high of 56.97 and then received a bearish earnings report in July that took the stock down to the 200-day MA and below the $50 level to 49.00. Nonetheless, being a DOW stock and having reached a strong psychological and MA support, it was able to grab on to the coattails of the rally in the indexes and break the downtrend as well as the previous June high. Because of that, the stock has now gained momentum to the upside and with further upside expected in the indexes, it is likely the stock will be heading higher and reaching the strong psychological resistance at $60 as well as up to the strong 100-week MA currently at 61.00.
It must be explained though, that the fundamentals of this stock have not changed and this was a stock that was heading lower prior to this recent rally in the indexes. As such, once the strong upside resistance is reached, and if the indexes do top out at the levels mentioned above, UTX could be one of the stocks receiving the strongest selling.
On a weekly closing basis, resistance is strong at the $60 psychological level, at 61.00 where the 100-week MA is currently at, and at 62.40 where the 200-week MA is currently at. On a daily closing basis, there is no resistance, other than the psychological one at $60, until the 62.46 level is reached (previous high or some importance seen in July08). On a weekly closing basis, there is minor support at 52.23 and then strong support at 49.64. On a daily closing basis, support is decent at 56.00, decent again at the 50-day MA and a small minor close at 54.22, and stronger at the 100-day MA as well as decent previous low close at 52.22. Below that level, major support is found at the 200-day MA, as well as important low close support at 49.64.
UTX shows no nearby-resistance above until the $60-$61 level is reached. If the indexes continue to go higher this coming week there is little to stop the stock from getting up to those levels. Nonetheless, the resistance begins to get strong at the 100-week MA, currently at 60.96, and gets very strong up at the 200-week MA, as well as a previous intra-day high of consequence from July08, at 62.46. With the stock showing fundamental weakness in the July earnings report, it is not likely the stock will be able to get above those resistance levels unless the DOW is able to punch through the 10,000 level convincingly (unlikely).
It must also be noted that a rally up to the 60.00 will be exactly a 50% retracement of the drop seen last year. This type of retracement is not only an important Fibonacci number but also the exact amount of retracement the DOW will show if it gets up to 9704. It must also be mentioned that in addition to the 100 and 200 week MA's that are presently at 60.96 and at 62.46, the 50-month MA is also at 61.57. Taking into consideration all these important resistance levels, it seems highly unlikely the stock will be able to do much more to the upside after it reaches $60.
On the downside, the $50 level is a natural psychological magnet to the stock if the market gets into any kind of corrective phase, In addition, this is a stock, like the DOW, that has never re-tested its March 6-year low (37.40). As such, if the indexes do top out at the levels mentioned, UTX will likely be one of the stocks receiving the most selling.
Sales of UTX between 60.00 and 60.96 and placing a stop loss at 62.56 and having an objective of $50, will offer at least a 4-1 risk/reward ratio.
My rating on the trade is a 4.25 (on a scale of 1-5 with 5 being the highest probability).
AMZN (Friday's closing price - 85.00)
AMZN a few weeks ago generated an Island gap formation that is generally seen only at major tops or major lows. The island formation was caused by a less-than-expected earnings report that came as a surprise as the stock had not only been anticipating good earnings based on the company's new Kindle product, but also because the company has been showing better than expected earnings reports for the 2 quarter prior.
With the sharp drop in price, as well as with the Island formation, it is highly likely that a long-term top has been set. Nonetheless, after a strong and likely successful test of the psychological support at $80, as well as with the strong rally seen in the indexes, dragging the stock back up, the probabilities favor AMZN attempting a second time to test the highs made.
On a weekly closing basis, resistance is decent to strong at 86.49 and very strong at 87.56. Above that level there is nothing until 93.43 is reached. On a daily closing basis, resistance is decent to strong between 85.96, strong between 87.44 and 87.56 and very strong at 93.87. On a weekly closing basis, there is minor support at 83.58, psychological at 80.00 and decent to strong at 77.63. Below that level there is strong support at 73.60 and then nothing until 68.56. On a daily closing basis, support is strong at 81.06 from the most recent low close as well as from the 100.-day MA. Below that level there is decent support at 75.63, decent again at 73.60 and strong at the 200-day MA currently at 68.80.
AMZN is showing, in addition to the island formation, a Head & Shoulders formation on the daily closing chart, with the left shoulder at 87.56, the head at 93.43, and the right shoulder at 87.44. The necklines are at 75.63 and at 81.06. Such a top formation (Island and H& S) puts the stock into the category of a "highly rated and highly probable" short. It is evident, though, that the strength and momentum shown in the indexes has prevented the chart traders from getting aggressive on the short side. Nonetheless, if the indexes do reach their upside objectives this coming week and top out, without AMZN breaking above its resistance levels, it is highly likely the stock will be one of the first stocks sold aggressively.
There are two levels of daily close resistance above that are important. The first one is at 85.96 and though it is not considered a strong resistance, it is considered an indicative resistance as a close above it will take the stock out of its immediate short-term downtrend and dilute some (not much) of the recent weakness. The most important daily close resistance, though, is up at the right shoulder of the H&S at 87.44. If that level gets taken out, on a daily closing basis, the H&S will begin to disappear and the traders will attempt to go up to close the island gap at 89.56.
It is likely that the indexes will be higher this coming week (likely on Monday) and further upside in the stock will be seen, above the high seen on Friday, with the possibility of the stock getting up intra-day to the 86.60/86.68 level where strong intra-day resistance is seen. If the indexes are up near the resistance levels mentioned and AMZN has not broken above the 86.68 level, it is likely a very strong short.
Sales of AMZN between 85.96 and 86.67 and using a stop loss at 88.30 (or 87.66 on a stop close only basis) and having an objective of at least a drop down to 73.60 (probably more) will offer a risk/reward ratio of 6-1 or better.
My rating on the trade is a 4.25 (on a scale of 1-5 with 5 being the highest probability).
RSG (Friday's closing price - 25.24)
RSG had been on a very strong up-trend from a low of 15.05 up to a high of 27.34 seen 3 weeks ago. Nonetheless, the company received a less than expected earning report and took a drop down two weeks ago signaling that perhaps the top of the rally has been found. In addition, the stock got up within 25 points of the 200-week MA, giving additional reasons to think that further upside will be difficult to achieve.
It is also important to note that the $27 level has been a very strong pivot point for RSG since 2007, and it is unlikely that unless a bull market is in place that the stock will be successful in heading higher.
On a weekly closing basis, resistance is minor to decent at 25.86 and strong at 26.60. On a daily closing basis, resistance is decent at 25.86 and very strong at 26.60, from a double top at that price. On a weekly closing basis, support is minor at 25.01 and minor again at 23.64. Below that level, support is strong at 21.54 and very strong at 19.86. On a daily closing basis, support is minor at 24.92 and stronger at 24.46. Below that level there is minor to decent support at 23.41 and strong support between 22.45 and 22.60 from several previous daily low closes as well as from the 200-day MA.
RSG has given both fundamental as well as chart signs that a top to rally that started in March at $15 has been found. The successful retest of the 200-week MA, as well as the double top built up at 26.60, are powerful resistance levels that are unlikely to get broken without some major help from outside sources. If a top has been found drops down to test the closest support level of any consequence at 21.54 will likely occur. In addition, if the indexes do get into a corrective phase, drops down to the strong weekly close support at 19.86 could also be seen.
Nonetheless, it is likely that a one more rally up to test the double top at 26.60 will occur. It is also important to note that the highs made in January between 26.52 and 26.81, prior to the recent high made at 27.34, could be seen if the stock does generate a retest of the highs. Last week the stock had a classic reversal week with lower lows and higher highs as well as a close above the previous weeks high. Such action suggests that this coming week the stock will move higher and likely reach the desired short entry point between 26.52 and 26.81. Such a rally, though, if it fails to generate new highs would likely be seen as a successful retest of all upside levels mentioned, and should then generate a new trend to the downside.
Sales of RSG between 26.49 and 26.81 and using a stop loss at 27.44 and having an objective of at least 21.54, will offer a risk/reward ratio of at least 5-1.
My rating on the trade is a 3.75 (on a scale of 1-5 with 5 being the highest probability).
WDC (Friday's closing price - 32.85)
WDC has been on an absolute tear since the stock successfully tested the November low at 9.48 with a March low at 12.64. Since that successful retest occurred the stock has rallied all the way up to last week's high at 33.39. It is important to note, though, that the last $20 to the upside has been without any correction phases of consequence.
WDC, though, is reaching levels of previous resistance that are pretty strong and with the overbought condition, as well as the fact that the indexes may reach their upside objectives this week, makes the stock very susceptible to a strong profit taking drop.
On a weekly closing basis, there is no resistance until major resistance is found at 38.93. On a monthly closing basis, though, there is strong resistance at 36.25 and stronger resistance at 37.53. On a daily closing basis, there is decent resistance at 33.53, and decent again at 34.99 and at 35.65. Major resistance is found at 39.98. On a weekly closing basis, support minor at 31.25, at 30.25, and again at 26.69. Stronger resistance will be found down between 24.52 and 25.00 from a previous weekly close (24.52), the 100-week MA (currently at 24.66, and psychologically at $25. On a daily closing basis, support is decent between 30.12 and 30.65. Below that level, though, there is nothing until 24.99 is reached.
WDC is showing strong intra-week resistance at 34.80 and decent intra-week resistance at 35.46 and again at 36.15. In addition, with such an overbought condition the psychological resistance at $35 will also come into play. The stock did have a classic reversal week this past week with lower lows, higher highs, and a close above the previous weeks high, as such, the probabilities of the stock generating a rally up to around the 34.80 this coming week, in conjunction with the indexes, is also high.
With no support level of consequence built during the last $20 to the upside, if WDC does show that a top is reached, the amount of profit taking that will likely occur should be large. It probably should be mentioned that much of the rally has probably been due to a short-squeeze as this was a favorite stock with the bears when the market was reeling. With the stock reaching levels of resistance that go back as far back at 1997 it is not likely that much further upside can be seen.
The closest support level of any consequence is down at $25, and that means that if the traders do start taking profits, the drop could be strong and swift.
Sales of WDC between 34.79 and 35.65 and using a stop loss at 36.25 and an objective of 24.52 will offer a risk/reward ratio of 6-1.
My rating on the trade is a 3.25 (on a scale of 1-5 with 5 being the highest probability).
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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 was successful this week in closing the gap between 11.97 and 12.20. At the same time the stock tested successful the daily closing support at 11.84 as well as the intra-day support at 11.54. In addition, the stock was able to generate a daily close on Friday above a minor resistance between 12.34 and 12.52. The stock did leave a gap open between 12.97 and 12.76 that is a probable objective for this week. With the expected rally in the indexes this week, it is likely that the stock will show some strength with a possibility of getting up as high as 13.94 to 14.04. Nonetheless, in looking at the chart and using the chart evaluation of what the indexes are likely to do this week and the following weeks, I would say that a rally up to 13.64 (another minor resistance) will be seen but that no further upside will happen. On a daily closing basis, a close between 13.06 and 13.46 can be expected but no further upside is likely unless the indexes go higher than the levels mentioned in the newsletter. Overall, though, I do believe the stock will be breaking supports over the next 6 weeks and heading down to the 9.43 level. GPS received a slightly better than anticipated earnings report and with the help of the indexes the stock rallied close to a decent resistance level at 19.75. Due to the fact the stock closed on the highs of the day and of the week, it is likely that further upside will be seen this week with a possible objective of getting up to the $20 level. Nonetheless, the resistance, on a daily closing basis, starting at 19.56 and up to 19.97 is very strong and on a weekly closing basis, the resistance at 19.88 is very strong as well. Due to the fact that I am expecting the top to be seen in the indexes this week, I am changing my stop loss to a 20.07 stop close only stop loss and likely will add to the positions on a rally up to the $20 level. Any daily close below 17.94 would be strongly bearish. VALE has been able to build a strong resistance level, on a daily closing basis, between 20.82 and 20.94. The stock was able to close out the week above $20 on the weekly chart but unless the indexes go higher than the levels mentioned, it is unlikely that the stock will be successful in generating much upside, above the levels seen recently. Based on the close near the highs of the day on Friday, further upside up to 21.00 will likely be seen, but if the stock is unable to break above the intra-day high seen over the last 10 months at 21.27, it is unlikely to go any higher. At this time, any daily close below 19.65 would be considered bearish. A weekly close above 20.79 next Friday would be considered bullish. HON, much like the SPX, has strong resistance on the monthly closing chart at the 200-month MA (36.12). Nonetheless, the stock did close near the highs of the week and if the indexes go higher, as anticipated, it could drag the stock up to an open gap between 37.20 and 37.63 that has been open since September. Nonetheless, the $36 to $37 level has been a major pivot point in the stock for many years and it is not likely the stock will be able to go higher without the indexes getting above the levels mentioned. As such, I may get out of my shorts on Monday and look to resell the stock as soon as the gap is closed, looking for the stock to close at or below 36.12 on the 31st, and then go lower for September. Any daily close below 34.92 would be strongly bearish. DIOD had a bearish day on Friday when it was one of a few stocks that closed in the red. In addition, the red close caused Thursday's close at 21.12 to be a successful retest of the 21.29 daily closing high. Unfortunately the stock did not close more than 10 points lower than last week on the weekly chart, so the weekly chart has still not given a sign that the stock has topped out. Nonetheless, the inability of the stock to close in the green on Friday, at a time the indexes were making new 10-month highs, seems to suggest that the stock has no ability to go higher. After rallying from a low of 2.95 in March up to a strong psychological level of $20, it is likely that the stock has reached its optimum high. A daily close below 20.26 would be bearish. A daily close above 21.29 would be bullish. GE was dragged up this week by the strength in the indexes. Nonetheless, the stock was not able to accomplish anything of consequence on the chart and is likely to be one of the first stocks to fall when the indexes find their top. The action seen this past week, after a support level was built at 13.36 is likely a retest of the 14.70 daily closing high made on August 7th. On the daily closing chart, that high has not been successfully tested yet. Resistance will be decent to strong at 14.55. It is probable, though, that the stock will get that high if the indexes go higher as expected. Stop loss orders should be cancelled but if the stock is able to get above 15.00, consideration to liquidation can be given. Any close below 13.36 would be strongly bearish.
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1) DIOD - Shorted at 20.77. Averaged short at 20.36. Stop loss at 21.98. Stock closed on Friday at 20.78.
2) AMZN - Shorted at 84.29. Covered shorts at 84.14. Profit on the trade of $15 per 100 shares minus commissions.
3) VALE - Averaged short at 19.716 (3 mentions). Stop loss at 21.37. Stock closed on Friday at 20.52.
4) RIMM - Shorted at 73.19. Covered short at 73,52. Loss on the trade of $33 per 100 shares plus commissions.
5) RIMM - Shorted at 75.38. Covered short at 75.91. Loss on the trade of $53 per 100 shares plus commissions.
6) AMZN - Shorted at 82.58. Averaged short at 84.433. Covered shorts at 82.22. Profit on the trade of $664 per 100 shares (3 mentions) minus commissions.
7) HON - Shorted at 34.85. Averaged short at 35.69. Covered shorts at 34.96. Profit on the trade of $292 per 100 shares (4 mentions) minus commissions.
8) GPS - Shorted at 19.55. Averaged short at 18.885. No stop loss at present. Stock closed on Friday at 19.48.
9) HON - Shorted at 35.96. No stop loss at present. Stock closed on Friday at 36.32.
Previous Newsletters
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Encyclopedia of Chart Patterns. A must have for chart aficionados! |
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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