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Issue #112 
March 01, 2009 | Newsletter
The newsletter with chart analysis for stocks and stock indexes |
Stock Indexes Analysis/Evaluation
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| No Support Underneath the Indexes! How Far will they Fall?
DOW Friday close at 7063
The DOW continued its downslide this week into new 12-year lows and showed no signs that a capitulation phase is close-by. The index closed below a 12-year monthly support level of consequence at 7500 and gave notice that without some tangible fundamental evidence that could be represent a possible future recovery in the financial industry, that lower levels can be expected.
It is important to note that from a chart perspective, the index no longer has any previous levels of major support that can be counted on to generate short-term buying, as such the index will now be more dependent on news and perception than before. By the same token, without chart support levels of consequence, should the index show any unexpected support, it will likely be indicative.
On a weekly closing basis, there is no support until 6392 is reached and even then that support is decent at best. On a daily closing basis, there are only very minor supports at 6976 and 6738, as well as the stronger support 6391. On an intra-day basis, there is some decent support at 6936 from a spike low made on Oct 28th 1997. On a weekly closing basis, resistance will now be strong at 8001 and at 8046, from 2 previous low closes at those levels as well as from a psychological basis. Stronger resistance will be found at 8281 from a previous weekly high close. On a daily closing basis, decent resistance will be seen at the most recent high close of 7351. The 7552 (previous low daily close) will also offer decent resistance. Resistance above that level will be minor at 7933 and stronger at 8000 from a psychological basis.
With the oversold condition that exists in the indexes and the lack of heavy participation, panic selling is not something that is likely to happen. As such, probabilities favor a continued slow deterioration of the indexes until some fundamental piece of news generates enough interest to cause a spike up in price. Until then, the index is likely to continue under selling pressure and in a downtrend. Evidently there will be corrections along the way but selling rallies will continue to be the main thrust. At this time, with the break of major support, the bulls will likely wait for buying areas to be uncovered or developed before becoming aggressive.
The break of monthly support at 7500 is a very strong sign that the marketplace has big problems that at this time the traders don't believe have immediate or even viable solutions. Nonetheless, the break does need to be confirmed with a second close next month below 7500. Until such a time, the trading for this coming month will likely have a negative bias but tentative and without much conviction, at the very best.
Nonetheless, the fact that the DOW is now trading without any previous support levels of consequence does mean that a watchful eye will need to be constantly alert for any movement toward the upside that breaks resistance levels of consequence. Such action could be a sign that a bottom has been found. Rallies up to test previous supports, such as 7500, are likely to happen within the context of a downtrend, but won't likely mean much.
Next week there are no "miracle cures" scheduled and I do not see anything happening with the government that at this time could be a catalyst. As such, it is back to trading based on reports that will likely generate continued backing and filling on a short-term basis, all within the context of a downtrend. It can be said that many of the stocks that have been the cause of this break of support are already at levels where little more downside can be seen (example is C, trading at $1.50). Because of this, the downside is likely to be as labored as the upside and it is possible that trading will slow down to a trickle while traders await further news.
Based on last week's range of 378 points and based on the probability of the 7250 level being resistance and the 7000 being broken, I would say that a trading range between 7250 and 6872 will occur.
NASDAQ Friday Close at 1378
The NASDAQ was the only index that had been able to stay above its previous weekly close support level of consequence at 1384, but with Friday's close the index made a new 58-month weekly closing low. The fact the NASDAQ broke its support adds a note of pessimism to the market as most of the recent buying has been in general stocks, rather than blue-chip or financial. Such a break likely means that the bulls have somewhat "given up the ship" overall and that further downside is to be expected.
In addition, the index also generated a monthly close below the 1479/1499 level that was an important pivot point between 1997 and 2003. The last time the NASDAQ broke below that level of support, the index traded as low as 1108 and stayed below that level for a period of 10 months. Such a break, if confirmed next month, will likely keep the index under selling pressure for several more months to come.
On a weekly closing basis, support is now decent to strong at 1321, a bit stronger at 1262 and major at 1140. On a daily closing basis, support is very strong at 1316. Below that you have to go back to 2003 to find strong support down at 1271. Major support will now be at 1114. On a weekly closing basis, resistance is now decent at 1384, strong at the psychological level of 1500, and very strong at the most recent weekly closing high at 1592.
It is evident that the break of the weekly close support in the NASDAQ at 1384 has to be considered negative. The break still needs to be confirmed next week with another close below that level, but the fact that there is little positive news expected this week could lead to an easy confirmation next week. It must be noted, though, that the support down at the previous low of 1316, both on a daily and weekly basis, is not only recent and strong but goes all the way back to 2003. As such, it is not likely the index will be dropping substantially from Friday's closing price any time soon.
With the DOW and the SPX now having a dearth of support levels to look at, it is likely that the chart traders will turn their attention a bit more toward the NASDAQ, as chart points are still clearly evident and defined. It is important to note that the index has not yet broken the Nov17th intra-day low at 1293 or the daily closing low 1319. In order to break those levels, the rest of the indexes have to go substantially lower and at this moment the probabilities of that happening is low.
Nonetheless, a drop down to the 1315 level this week is possible. Possible trading range for this week is 1397-1315.
S&Poors 500 Friday close at 735
The SPX broke below all of its daily and weekly closing supports going back to 1996, and did it a way that struck fear into the hearts of all investors. The index not only confirmed the break of the double bottom at 800 but did it without even a re-test of that level intra-week. Such action is weighing heavily on the entire market and shows that the financial sector will continue to drag everything down until that problem is actually resolved, or thought to be resolved. That is not something that anyone seems to have a clear answer or idea for.
The news regarding C was the "straw that broke the camel's back" this week as it is now evident that many big banks are mired in debt they cannot solve on their own. The problem is so severe that only through some form of nationalization by the government can these long-standing and critical-to-the-economy institutions stay in business. Such action puts investors on the "back seat of the bus" and without power to protect their long-term investments in entities that less than a year ago were not only thought to be inviolate but also mainstay of their portfolios.
On a weekly closing basis, your need to go back to 1997 to find some minor support at 737 (index closed at 735 and is not yet considered a break of support), at 700 (psychological), and then minor support again at 635. On a daily closing basis, there is no recent support and you also need to go back to 1997 to find some very minor support at 700 and then again at 635. On a weekly closing basis, resistance is now going to be strong at 800 and very strong at 868 (most recent weekly closing high). On a daily closing basis, resistance is minor at 753 and stronger at 773 from the most recent high daily close. Strong resistance at 800 from previous daily close lows as well as from the 20-day MA.
The SPX is definitely the index that is pulling all the other indexes down as it is evident that our market economy cannot function without the credit the banking industry offers. As such, the threat of bank closures, bankruptcies, and/or government nationalization has brought the whole process almost to a halt. Until these problems are thought to be resolved, the index will not turn around.
Without any chart supports where losses can be limited intelligently, it is unlikely that traders or investors will step up to buy. The index is without a net underneath at this time and the only thing to do is to wait and see where and at what price the buying interest comes in. Until that happens, all you will see is selling in this index.
Based on last week's trading range and on the short-term resistance level built this week at 773, the possible trading range this week is 754-708
It is evident that most of the selling is concentrated in the blue-chip and financial sectors. I don't see that changing this week even though it is possible that some of the strong selling could spill over to the general market, as that sector has been holding up relatively well as of late.
Without any "special" event scheduled for this week that traders could look forward to, it is likely the indexes will trade based on the reports that come out throughout the week. The indexes do find themselves oversold and it is likely that at some point this week a rally back up to the recent breakdown points will be seen. Nonetheless, if the news continues to be as bearish as it was this past week, a rally may not happen.
The most important thing to keep in mind at this time, is that the two main indexes (the DOW and the SPX) are without chart support of consequence. Such a situation requires great vigil as any a rally of any consequence to the upside would be unexpected and could have a reason behind it that is valid but not readily known.
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Stock Analysis/Evaluation
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CHART Outlooks
Even though the indexes are likely to be heading lower, it does seem that certain industries as well as some individual stocks will start moving on their own fundamentals and charts. It is not likely that even if the indexes head lower that the downside action will be aggressive. As such, mentions this week are geared to individual charts and not to the indexes in general.
EPIQ (Friday close at 16.87)
EPIQ is one of those companies whose services have suddenly become very valuable in this economic environment. EPIQ Systems, Inc. provides integrated technology solutions for legal profession in the United States. Its solutions streamline the administration of "bankruptcy", litigation, financial transactions, and regulatory compliance matters. With so many economic problems facing the population as well as companies, this is a company that without trying has found itself in a perfect niche to this market.
Since October of last year, EPIQ has been in a strong up-trend that has already sustained several successful re-tests of previous lows. The stock now seems poised to go up to the next area of resistance with the possibility of generating an all-time high if things continue in the direction they have been in for the past year.
On a weekly closing basis, support is decent at 15.70 and now very strong at 15.39 (most recent low weekly close as well as 20-week MA). On a daily closing basis, very minor support is seen at 16.28, and then strong between 15.70 and 15.88 from several daily closes between those two levels as well as from the 20-day MA. Further supports of some consequence are found at 15.21 and at 14.78. Major support is down at 14.41. On a weekly closing basis, resistance is decent at 17.30, stronger at 17.72, and even stronger at 18.15. Major resistance is up at 20.35. On a daily closing basis, there is decent resistance at 17.30 and then strong resistance between 18.15 and 18.77. Major resistance is found at 20.41.
It is evident that for the next few months, if not longer, the company's services will be in great demand. Under the present economic conditions, litigation and bankruptcy are likely to increase rather than decrease. From a chart perspective is seems likely that the stock will be at least in a trading range from $15 to $20 and with the most recent move down to the $14 level, it is likely the stock is now moving up to the top of that trading range.
In addition, from a chart perspective, the stock is presently showing a flag formation that was broken last week. The flagpole is the move from a 14.27 low 4 weeks ago to a high two weeks ago of 17.00. With the stock breaking above that 17.00 high last week and closing above the previous high close of 16.52, it seems probable that the stock is heading to the objective of the flag formation, which is 19.01.
There is very evident resistance on the way up to that level but the fundamentals seems to favor continued upside and the possibility of the stock making new all-time highs is real. Though the risk/reward ratio is a bit under the 4-1 ratio I use, the probability rating is very high.
Purchases of EPIQ between 16.23 and 16.50 and placing a stop loss at 15.80 and having an objective of 19.01, offer a risk/reward ratio of "almost" 4-1 (about 3.5-1).
My rating on the trade is a 4 (on a scale of 1-5 with the strongest probability rating being 5).
JNJ (Friday close at 54.65)
JNJ is one of those stocks that over the years has traded in very clearly defined $10 ranges between psychological support/resistance levels. Between 1999-2001, the stock generally traded between $40 and $50, between 2001-2004 it was $50-$60, between 2004-2008, it was $60-$70, and for the past few months, the stock has been trading between $60 and $55. On Friday, the stock got down to the $50 level for the first time since 2004 and the support at that level seems strong enough to consider being a buyer.
JNJ is a very well run company that is well diversified into many different industries and has little debt. As such, the company has not suffered as greatly as other companies during these trying economic times and has been able to be relatively resilient in the process. With such a clearly defined track record of range trading over the years, now that the stock has reached the $50 level, it is likely that traders will start looking at the long side, even though the indexes may continue to trend lower.
On a weekly closing basis, support is strong between 48.81 and 50.05 from many weekly closes in that range back in 2003. In addition, the $50 level must be considered major support as well as pivot point. On a weekly closing basis, resistance is minor at 52.53/52.75 (from several high weekly closes seen back in 1999 and 2000) and again minor up at 54.23 (from a close in 2004). Stronger resistance will be found at 58.51 from the most recent high weekly close as well as from the 20-week MA. On a daily closing basis, resistance is non-existent until the most recent high daily close at 54.25 is reached. A bit stronger resistance will be seen at 55.85/55.97 (from two previous daily close lows of consequence as well as from the 20-day MA). Strong resistance will be found at 58.50 from a triple top that is presently at that price as well as from the 20-day MA.
It is important to note that JNJ breke an important monthly close last week at 57.54 as well as the 100-month MA currently at 59.00. Such a break, in addition to a lack of support until the $50 was reached, caused the strong and swift drop in price. Nonetheless, between $48 and $50, it is likely that the stock will find strong chart support as well as support fundamentally.
It must be mentioned that JNJ is now showing three gaps in the chart with the first one at 56.81-56.79, the second at 55.63-55.47 and the one on Friday at 52.30-52.00. The first two gaps could be considered a breakaway and runaway gap, but rarely do 3 gaps stay open. With the stock nearing strong support levels it is likely that at the very minimum some form of corrective rally will occur where the third gap would be closed. If that happens, the probability of at least testing the runaway gap up at 55.63-55.47 will increase strongly. With a good risk/reward ratio in place with such a rally, and the possibility of the stock trading as high as $60 within the next few months, due to the trading range scenario explained above, the trade makes a lot of sense.
Purchases of JNJ between 49.00 and 49.30 and placing a stop loss at 47.95 and having a minimum objective of 55.00, offers a risk/reward ratio of at least 4-1. Possibilities of rallies up to the $60 do exist and in that case the risk/reward ratio would climb up to 8-1.
My rating on the trade is a 3.5 (on a scale of 1-5 with the strongest probability rating being 5).
SNDA (Friday close at 32.82)
SNDA is an online gaming company that reported better than expected earnings on Friday and generated an intra-day rally of close to $5 while creating a classic reversal day/week with higher highs, lower lows, and a close above the previous day and week's close. Nonetheless, after the earnings report Credit Suisse downgraded the company saying they don't feel the earnings will be able to be maintained.
SNDA, for the last 20 months, has been mostly trading in a range between $34 and $20 with one exception between Sep and Dec07 when the stock market was at its best and the stock traded as high as $40. The stock has been somewhat inure to the economic woes affecting the world. Nonetheless, with the recent break in the indexes as well as the Credit Suisse downgrade, in conjunction with "buy the anticipation and sell the fact" mentality, it is likely that the stock is a good sell at this time.
On a weekly closing basis, resistance is very strong between 33.08 and 33.40 with three major high weekly closes within that range over the last 20 months. Above that level, strong resistance is again seen at 36.96 and major resistance is up at 39.46. On a daily closing basis, very strong resistance is seen at 37.47 which has been the highest daily close since May 15th 2008 when it closed at 37.60. On a weekly closing basis, support is minor at 30.55 and strong down at 27.75. Below that level, support is strong at 24.99 and major at 21.76. On a daily closing basis, support is very minor at 31.90 and a bit stronger between 29.94 and 30.09. Stronger support is found between 27.73 and 27.79 from two previous daily low closes as well as from the 100 and 200 day MA's.
With the major one day rally seen on Friday it would be expected that follow through would come on Monday. Nonetheless, the rally was probably caused by stop loss orders getting hit, strong short-covering, as well as technical buying due to daily and weekly reversal pattern being seen. Nonetheless, the stock has reached a very strong level of resistance where strong selling is to be expected. If the level of resistance holds up on Monday, the stock is a likely strong sell due to the range trading the stock has experienced over the past 2 years.
It must be noted that SNDA has been very resilient to the moves in the US stock indexes and therefore cannot be expected to move down based on further weakness there. Nonetheless, problems also exist in China, as well as the rest of the world, and there is little reason to believe that an online gaming stock would be able to outperform the market as well as overcome the economic ills that everyone is suffering from.
The most important thing to realize is that the stock is up at resistance levels that have been able to stop the stock in the past, even when the indexes were strong both in China and the US. With such clearly defined resistance levels just above where the stock closed at on Friday, the risk/reward ratio of this trade is very good.
Sales of SNDA between Friday's closing price of 32.82 and up to 33.21 and placing a stop loss at 34.11 and having an objective of a drop down to the 27.50 level of support will offer a risk/reward ratio of 4-1.
My rating on the trade is a 3 (on a scale of 1-5 with the strongest probability rating being 5).
WIND (Friday closing price at 7.55)
WIND is a company that over the years has generally shown an ability to separate itself from the action in the indexes. There have been several occasions in the past when the company outperformed the DOW and moved on its own chart patterns. The stock, over the past 3 years, has basically been in a trading range between $8 and $12, but in March of last year broke below that level and dropped as low as $6. Since then, though, the stock seems to be in a slow up-trend that has been consistent and clearly defined.
Back in March of last year the stock made a 5-year low but since that low was made it has been re-tested successfully on one occasion and now seems to be in the second re-test that is giving signs of being successful as well.
On a weekly closing basis, support is very strong at 7.29 and major at 6.20. On a daily closing basis, at 7.07 and major at 6.47. On a weekly closing basis, resistance is decent at 8.30 and very strong up at 9.19. Above that level there is no resistance of consequence until the 11.07 level is reached. On a daily closing basis, there is minor resistance at 7.61 and a bit stronger at 8.30. Above that level decent resistance is again found at 8.51 and very strong up between 9.13 and 9.27.
WIND, on Friday, gave a successful re-test of the support at 7.07 when it closed Thursday at 7.07 and Friday at 7.55. Such a perfect re-test of that support level of importance, coming on a day that the indexes showed strong weakness, is a very positive sign for the stock. In addition, such a move allows for a trade with a high probability rating and very low risk factor.
It is also important to note that on the weekly chart the stock shows a double bottom at 7.29 that was also tested this week. Though the close was not higher than the previous week (was the same) and no successful re-test signal of that level was generated, it goes to show that strong buying is coming in at that level as that double bottom held up nicely, now for 2 weeks in a row.
WIND has been in an up-trend since the low of 6.07 (6.20 on a weekly closing basis) was made. With a previous successful re-test of that low already accomplished, and a likely second successful re-test in the process, the stock offers a low risk trade with high probability ratio.
Purchases of WIND between 7.13 and 7.40 and placing a stop loss at 6.90 and having an objective of 9.13 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).
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Updates
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| Monthly & Yearly Portfolio Results
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Open Positions and stop loss changes
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| Status of account for 2007: Profit of $9758 per 100 shares after losses and commissions were subtracted. Status of account for 2008: Profit of $14.704 per 100 shares after losses and commissions were subtracted.
Status of account for 2009, as of 1/31 Loss of $1778 using 100 shares per mention (after commissions & losses) Closed out profitable trades for February per 100 shares per mention (after commission)
HON (short) $1399 ITG (short) $139 RHT (short) $71 FSLR (short) $2241 SGR (short) $759 NUAN (short) $97 HPQ (short) $539 AMZN (long) $154 JNJ (short $111 DIA (long) $112 FSLR (long) $299 Closed positions with increase in equity above the close the previous month.
TNE (long) $294 Total Profit for February, per 100 shares and after commissions $6291 Closed out losing trades for February per 100 shares of each mention (including commission)
FSLR (short) $280
AMZN (short) $856 SGR (short) $74 MRK (short) $28 EBAY (long) $85 MT (long) $91 Closed positions with decrease in equity below last months close.
WFC (long) $294 Total Loss for February, per 100 shares, including commissions $1806 Open positions in profit per 100 shares per mention as of 2/28
TNE (long) $32 AA (long) $5 Total $37 Open positions in loss per 100 shares per mention as of 2/28
GE (long) $46
STP (long) $79 MT (long) $82 Total $207 Status of trades for month of February per 100 shares on each mention after losses and commission subtractions.
profit of $4315
Status of account/portfolio for 2009, as of 2/28Profit of $2537 using 100 shares traded per mention.
NUAN closed below last week's close and its recent downtrend seems to be intact. In addition, the weekly close below 9.18 was confirmed. A drop down to close the gap at 7.58 is now more probable than before. The support at 8.51 was strengthened this past week when the stock was able to bounce off of that level. Nonetheless, the rally failed to close above 9.18 and now the 9.12 level, on a daily closing basis (9.33 intra-day), is considered decent resistance. Drops down to 7.18-7.50 are now likely.
TNE now looks vulnerable to further downside after the stock failed to close above 12.50 on any day this past week. In addition, the stock was not able to close above last week's close at 12.26. That action left the door open for further downside. Additionally, the stock had an outside week with higher highs and lower lows than the previous week. With the close being in the red, it likely means further downside will be seen this week. Support continues to be strong at 11.58 on a weekly closing basis. On a daily closing basis, there is some support at 12.01, stronger at 11.52, and even stronger at 11.23. Nonetheless, the chart seems to be leaning toward downside movement and a daily close below 12.01 could be a catalyst for re-tests of the recent low at 11.15. The chart seems to suggest that a drop down to the $10 level and a new low could occur. AA this past week made new 20-year lows when it traded down to the 5.70 level breaking below the intra-day low set in 1990 at 6.20. In addition, the stock also made new 20-year lows on the weekly chart when it closed below 6.61. Nonetheless, the stock was able to hold itself above Monday's closing low at 5.81 on Friday with the close at 6.23. It is evident that the company is suffering strongly from the economic woes that are being seen but at these prices it seems difficult to imagine the stock being successful in going much lower. A drop, though, below the 5.70 low seen this week would be cause for liquidation whereas a rally above the week's high of 7.15 would be reason to consider addition to the portfolio. It is likely that with further weakness in the indexes, the stock could drop down to the 6.08 level, but at that price there is good support on the 10-minute chart. GE has shown no indication of a bottom on the weekly closing chart but on the daily chart the stock shows a potential double bottom at the 8.40 level. On Friday, the company announced they were cutting their dividend from $.34 cents to $.10 cents and the announcement generated much volatility causing the stock to make new lows on the day as well as new highs on the day. In looking at the chart of the last 20 years, I see no previous support of consequence until the 7.50 level is reached. Nonetheless, that support is from 1994 and not likely to be watched closely by the traders. A break below 8.40 would be a cause to liquidate the position, as the possibility of a double bottom being built is the only thing keeping the stock up. A close above 9.10 would be reason to consider adding positions. STP was able to hold itself above the lowest weekly close ever at 6.05 made in November of last year. Intra-day, and on a daily closing basis, the stock can still drop to 5.39, as that has been the lowest intra-day and daily closing low ever seen. Nonetheless, with its sister company (FSLR) holding up relatively well on Friday, after a very bad earnings report), it is possible that the stock is bottoming out and that Friday's close will be a successful re-test of the lows, as well as double bottom. A close below 5.39 would be a cause for liquidation while a close above 7.43, a reason to consider adding positions. MT was a mixed bag of tricks on Friday clouding the chart in a way that is almost impossible to know what will happen this week. The stock opened substantially lower and below a very decent support level at 19.11 and proceeded to drop down aggressively trying to close an open gap down at 18.02 and test the low weekly close at 17.82. The stock stopped short at 18.55 and proceeded to rally up to the 20.03 level and above the support it had broken. The failure to close the gap under those conditions seems to suggest the bulls are aggressive buyers on breaks. In the end, the stock was able to close above the 19.14 level of daily close support that is so important but below the decent weekly close support at 21.76, which seems to suggest the weekly closing low at 17.82 will be tested this coming week. It seems evident, though, that at the $20 level, this stock is well priced. It is important to note this stock will move more on inflation numbers than on index prices. Evidently the downside seems to be more likely but the action on Friday does not support that idea strongly. No suggestion right now as to what to do with this stock. I will wait for further action before making any suggestions.
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1) TNE - Purchased at 11.80. Stop loss at 11.17. Stock closed on Friday at 12.13.
2) FSLR - Covered short at 126.00. Shorted at 148.52. Profit on the trade of $2252 per 100 shares minus commissions.
3) SGR - Covered short at 24.28. Averaged short at 28.18. Profit on the trade of $780 per 100 shares (2 mentions) minus commissions.
4) NUAN - Covered short at 9.09. Shorted at 10.19. Profit on the trade of $110 per 100 shares minus commissions.
5) AMZN - covered short at 6423. Averaged short at 62.475. Loss on the trade of $828 per 100 shares (3 mentions) plus commissions.
6) HPQ - Covered short at 29.56. Shorted at 35.09. Profit on the trade of $553 per 100 shares minus commissions.
7) HON - Covered shhort at 28.89. Averaged short at 32.575. Profit on the trade of $1434 per 100 shares (4 mentions) minus commissions.
8) ITG - Covered short at 20.19. Shorted at 21.72. Profit on the trade of $153 per 100 shares minus commissions.
9) RHT - Covered short at 14.64. Averaged short at 15.065. Profit on the trade of $85 per 100 shares (2 mentions) minus commissions.
10) AMZN - Purchased at 61.87. Liquidated at 63.55. Profit on the trade of $168 per 100 shares minus commissions.
11) DIA - Purchased at 72.65. Liquidated at 73.91. Profit on the trade of $126 per 100 shares minus commissions.
12) EBAY - Purchased at 11.61. Liquidated at 10.90. Loss on the trade of $71 per 100 shares plus commissions.
13) MT - Puchased at 20.60. Liquidated at 19.83. Loss on the trade of $77 per 100 shares plus comissions.
14) MT - Purchased at 20.15. No stop loss at present. Stock closed on Friday at 19.33.
15) AA - Purchased at 6.18. Stop loss at 5.60. Stock closed on Friday at 6.23.
16) GE - Purchased at 8.97. No stop loss at present. Stock closed on Friday at 6.51
17) STP - Purchased at 6.88. No stop loss at present. Stock closed on Friday at 6.07.
18) JNJ - Shorted at 55.09. Covered at 53.84. Profit on the trade of $125 per 100 shares minus commissions.
19) MRK - Shorted at 28.30. Covered at 28.44. Loss on the trade of $14 per 100 shares plus commissions.
20) FSLR - Purchased at 102.63. Liquidated at 105.74. Profit on the trade of $313 per 100 shares minus commissions.
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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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