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Issue #116 
March 29, 2009 | Newsletter
The newsletter with chart analysis for stocks and stock indexes |
Stock Indexes Analysis/Evaluation
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| Major Resistance Levels Reached. Indexes Showing Signs of Topping Out!
DOW Friday close at 7776
The DOW was able to continue its recent rally with a higher close this past week than last week. With such a close, there is still no sign that the index has reached a top to this short-covering rally. Chart-wise, the index somewhat mirrored the previous week's action with upward movement throughout the week, followed by a weak red close on Friday. It is important to note, though, that last week the index rallied 502 points on Monday, in spite of the fact the previous week's close had been negative. If that happens again this coming Monday, it would be indicative that more upside is yet to come.
It is evident, though, that the resistance up at 8000 is starting to weigh heavily on the index, as the DOW had a couple of failed opportunities this past week to reach 8000 when it rallied above 7900 on Thursday (7932) and Friday (7923). Such a failure is indicative that the selling pressure is starting to mount and that the recent buying spree and upside momentum is beginning to wane. Next week's action should go far in clearing up the picture.
On a weekly closing basis, support is very strong at 6627. Some decent support can now be expected at 7528. On a daily closing basis, there is minor support at 7660 and stronger at 7552. Below that, there is decent support at 7278 from a previous close of some consequence as well as from the 20-day MA. Minor support is again found at 7115 and major support at 6597. On a weekly closing basis, resistance will be decent to strong between 8001 and 8045 from 2 previous low weekly closes of consequence as well as from the 20-week MA. Above that level there is further resistance at 8271. On a daily closing basis, resistance is now a bit stronger at 7925-7940 from the close seen on Thursday as well as a previous high daily close, on the way down, at 7940. Resistance gets a bit stronger up at 8115 from the 100-day MA.
With last Monday's strong rally, after a weak weekly close the Friday before, it is possible the bulls will try the same kind of scenario this week. The close on Friday at 7776 meant little to the chart. As such, since the bears were unable to accomplish anything of consequence to the downside, it is probable the bulls will try to generate a strong rally in the hopes of keeping the upside momentum going. With all the selling pressure that is starting to come in, the bulls need to make a statement or succumb to the fact the index is now overbought and at a cycle high, not to mention near a major resistance level.
There is little doubt that with no major news coming out on Monday and with the fact the index failed to break down on Friday after being under selling pressure all day, that next Monday will be the best opportunity the bulls will have to make a statement. With no news of consequence due out until Wednesday, getting the index to trade "up and above" 8000 has to be the objective of the bulls the first couple of days of the week. Failing to get "up to" a resistance level would be a strong negative and a big blow to the possibility of continued strength in the index.
The index, after a calm week the week before when it only had a range of 400 points, had another strong week with a trading range this past week of 652 points. It is evident that the low of the reversal day at 7559 on Wednesday will be an important pivot point this week. Using that support as a base this coming week, a rally up to the 8100 level is highly possible. Nonetheless, should the 7559 level break, all bets are off.
During the last 3 weeks, the weekly DOW chart is showing a small trading range of 400 points sandwiched between two wide trading ranges of 726 and 652. I believe the index will have more topping out action this coming week with a small trading range. Something like 7683 to 8083 being a good possibility.
NASDAQ Friday Close at 1545
The NASDAQ also continued its upward rally and in the process was able to get above and close above the 20-week MA at 1500, something neither of the other 2 indexes has been able to do yet. With the buying being concentrated in the smaller cap stocks this time around, it is evident the NASDAQ has been outperforming the other indexes. Nonetheless, on a daily and weekly closing basis, the index did get up to levels of strong resistance at 1592-1603 and failed to go higher. The rally did come to an abrupt halt when that area was reached.
It is important to note that the NASDAQ is the only index that is showing resistance levels based on previous highs, unlike the other two indexes that are showing resistance levels based on previous lows. This is an important fact as previous highs will always be stronger resistances than previous lows. As such, the NASDAQ will likely be the first index to give an indication as to what is happening and if the rally has found a top.
On a weekly closing basis, support will be decent 1500 from the 20-week MA as well as psychological. Previous weekly low close at 1574 should be considered a decent to strong support and the weekly close at 1384 should be strong support. Major support continues to be at 1294. On a daily closing basis, minor support will be found at 1517 and stronger at 1500 where the 100-day MA is currently located. Below that, decent to strong support is found at 1441-1457 from 2 previous daily low closes at those prices as well as from the 50-day MA currently at 1462. Additional strong support will be found at 1398 and even stronger at 1316. Major support at 1269. On a weekly closing basis, resistance is very strong at 1592 and again at 1632. Major resistance is presently at 1721. On a daily closing basis, resistance is strong at 1592 and very strong at 1632.
The NASDAQ seems to be saying that the upside rally may be over as Thursday's close at 1587, followed by Friday's close at 1545, must be considered a successful re-test on the daily closing chart of the very strong resistance at 1592. It does seem difficult to imagine the index being able to get above, on a daily or weekly closing basis, such a very evident and strong resistance level as 1592 (1598-1603 - intra-day) is considered to be. As such, the chart of the NASDAQ seems to suggest that a top has been found and that a rally next week, other than to get "slightly" above the 1587 intra-day high, would be unlikely. This does seem to negate the possible rally that the DOW and SPX charts are saying could happen, at least on a daily closing basis.
It is important to note that Thursday's high at 1587 is presently showing up as a spike high and the fact the index did go below Thursday's intra-day low at 1545 (got down to 1543) on Friday does increase the probability of further downside on Monday will be seen. Should the index close below 1517 any day this week, that would be considered a sell signal and the start of the correction and re-test of the lows.
The NASDAQ has rallied 321 points from its lows and has not yet had any kind of a re-test of the lows that would give confidence to the bulls that the index has actually found a bottom. Having reached a strong resistance level and failing to close above it last week suggests the index is now primed to head lower. Nonetheless, should the index be able to generate a couple of closes above 1592, then it is possible that further upside would be seen.
Possible trading range this week is 1568 to 1471.
S&Poors 500 Friday close at 815
The SPX had a strong week and was able to close on Friday above a previous support level of consequence at 800. Closing above that level was a very positive note as the 800 level was, throughout the past 12 years, a major support area that when broken in February generated an immediate and major drop down to 666. By closing above that level this week, it is possibly a sign that a major bottom has been set and that the bear trend is over.
Nonetheless, a one-week close above an important level is not confirmation. As such, a second close above 800 will need to be generated next Friday in order for the index to state its case that the low for some time has been set. A close below 800 next Friday will likely make this week's close at 815 into a successful retest of the 800 level and could signal that the rally was purely short-covering and that the bear trend is still feasible and could resume.
On a weekly closing basis, support will now be major at 683 and minor, but important, at 800. On a daily closing basis, support is minor to decent at 805/806, minor at 790, and important and decent at 768. Below that you will find minor support at 7.43, minor again at 696, and major at 676. On a weekly closing basis, resistance is decent at 825 from a previous weekly low close as well as from the 20-week MA. Strong resistance will be found at 868, strong again at 931, and major at 968. On a daily closing basis, resistance is now decent 832 (Thursday's high close as well as 100-day MA). Strong resistance above that level is found at 869/874 from two previous daily high closes that are almost a double top. Above that level, strong resistance will be found at 934.
The SPX received the bulk of the buying this week as the news that has been coming out has been geared more toward the financial industry. With additional help from the Fed in deciding to buy $300 billion in Treasury Bonds during the next 6 months as well as the likelihood of marking to market the toxic assets of the banks, the financial industry received the most buying interest among the bulls. These events are likely what caused the index to accomplish getting above and closing above the previous major area of support at 800 that was up until Friday considered to be major resistance.
The SPX is in fragile ground with many questions still unanswered and many naysayers ardently believing that the actions taken by the government will cause further problems down the line, rather than solve the problem. Such a discrepancy of beliefs will make it difficult for the index to state anything unequivocally without some confirming reports.
It is evident that if the index wants to go higher over the longer term that a "beachhead" above the 800 level will need to be set. That means another close next Friday above 800. Any confirmed weekly close below 800 (2 weeks in a row) will be viewed with disappointment and negativity and will likely generate a retest of the lows, and possibly resumption of the bear trend. As it is, the SPX has not yet built the kind of support on the chart that can generate further upside action without the fundamental changes stated, being confirmed as being the solution to the problem. As such, it is likely that a retest of the 666 low (683 on a weekly closing basis) is needed. Unfortunately that will mean that the grasp on the 800 level that was accomplished this week will have to be let go. Such action will likely put the index under strong selling pressure and at risk of the downtrend resuming.
A close above the 100-day MA at 835 would be the first step to higher prices. A close above the very strong resistance at 874 would then be needed to confirm the breakout. On the opposite side, a daily close below 805 would be a small sell signal and a daily close below the 50-day MA at 790 would likely generate stronger selling. A weekly close next week below 800 would also give a failure-to-follow-through signal and likely cause the index to go down and test the recent lows.
Based on the weekly chart, the probable trading range for the SPX this coming week is 849-804. This index, like the DOW, seems to say that further upside, of a slight nature, might be seen this week.
There is a discrepancy among the charts of the 3 main indexes. The DOW chart seems to be saying further upside is likely this week, but only limited and this week alone. The NASDAQ chart is saying the highs were likely made this past week and that there is only a "slight" chance of higher prices, and even then by only a small amount if it happens. The SPX is stating that higher prices by a decent amount are possible, if for at least this week. Such discrepancy is likely going to make the week very difficult to prognosticate.
All the indexes, though, seem to be saying that ultimately a correction back down to test the lows is likely to happen, as the indexes are overbought and close to levels of strong resistance. Whether it started this past week or whether it will start sometime in the next couple of weeks is still in question. As such, if rallies do occur they will likely be labored and limited.
There are a lot of reports of consequence to be released this coming week. Auto sales, home sales, construction spending, factory orders, and the ever-important non-farm payrolls are due out between Wednesday and Friday. As such, it is possible that for the first couple of days of the week, the indexes will trade within trading ranges that are uneventful. Nonetheless, by the end of the week, it is likely that definitive signs of which index chart is giving the correct signal will have been given.
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Stock Analysis/Evaluation
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CHART Outlooks
I continue to believe that the indexes will soon be having a strong correction downward. As such, only sales. or stocks that will be affected by the inflationary monetary policy, can be considered. Nonetheless desired entry points may require a rally in order to achieve. This is a tough week, as a short-term direction may not be known until the important reports coming out Wednesday through Friday are released. As such, patience may be required in waiting for good risk/reward ratios to be achieved.
NTES (Friday close at 24.60)
NTES is a stock that since 2005 has traded in a sideways fashion between a high of 27.16 and a low of 13.45, with the bulk of the trading occurring between $25 and $15. It is evident the stock was able to generally survive the big drop in prices seen over the past 15 months, nonetheless, there doesn't seem to be any reason at this time to expect the stock to start a longer term up-trend. With the stock having reached the $25 level last week, it seems likely that downward pressure will be brought to bear if the indexes correct downward.
Back in November, when the indexes made their first major low, NTES got down to the 15.00 level. In January that low was tested successfully with a drop down to 16.61 and with the recent index rally, the stock was able to generate a rally without any corrections that has taken the stock up to the 25.75 level. Nonetheless, the peak high on and the red close on Friday, seems to suggest that a top has been reached and that strong selling is coming in.
On a weekly closing basis, resistance is strong between 24.54 and 24.96 and major at 26.81. On a daily closing basis, resistance is very strong between 24.80 and 24.96 and major at 26.81. On a weekly closing basis, support is minor to decent at 22.58 and then nothing until the 50-week MA at 21.41 is reached. Below that, support is strong between $20 and 20.57 from a previous low, the 100-week MA, as well as from a psychological basis. Very strong support will be found at 19.22 from a previous weekly low close of consequence as well as from the 200-week MA. On a daily closing basis, support is non-existent until the most recent low daily close at 22.30 as well as from the 20-day MA. Further decent support at 21.76 and again at 20.72.
NTES has been on a tear to the upside since February's low at 18.25. The rally has been basically straight up with only one small correction down along the way. Nonetheless, the stock might have reached a possible top last Thursday at 25.75. Upon reaching that level the selling intensified and on Friday the stock closed in the red making Thursday's close at 24.82 into a successful retest of the very strong resistance between 24.80 and 24.99.
The resistance up at the $25 level goes all the way back to 2005 and is considered very strong. With a sharp $2 pullback over a period of 2 days, from Thursday's intra-day high of 25.75 down to Friday's intra-day low of 23.73, it seems safe to say that without a fundamental reason to go higher, this level will continue to see strong selling from now on. Without any close-by support or correction of consequence for the last 5 weeks and $7, if NTES has in effect found a top, the probability of a fast and tantalizing profit on the short side is high. Keep in mind that on a daily closing basis, there is a void of support between 24.80 and 22.30. It seems likely that once the stock has confirmed that the resistance up at $25 is still strong and valid, that the stock will "give up the ship" in a fast manner.
Sales of NTES between 24.97 and 25.30 and using a stop loss at 25.85 and having an objective of a drop down to 19.18-20.57 will offer a risk/reward ratio of at least 5-1.
My rating on the trade is a 4 (on a scale of 1-5 with the strongest probability rating being 5).
KGC (Friday close at 17.91)
KGC has been on a major up-trend since October's low of 6.85. Gold and Gold stocks are being purchased aggressively since it is believed that the monetary policy that has been instituted to save the financial industry will be strongly inflationary in the long run. In addition, Gold is being purchased worldwide, as a safe haven from the possibility of a banking collapse. At this time there doesn't seem to be any reason to think that won't continue.
From October to the end of December the stock moved in a straight up fashion from the low of 6.85 to a high of 19.02. During the last couple of months the stock has been in a corrective phase that ultimately ended up testing successfully the major support level at $15. Since that successful retest, the stock seems to have begun a new phase to the up-trend and just last week got back up to the $19 level. The recent chart formation is quite bullish and seems to be saying that higher prices are just around the corner.
On a weekly closing basis, support is decent at 17.22 and very strong (maybe major) down at 15.78/15.92. On a daily closing basis, support is minor at 17.91 and strong at 16.94-17.03 from 3 previous daily low closes as well as from the 50-day MA. Very strong support is found down at 16.31 from a previous low close of importance as well as from the 200-day MA. On a weekly closing basis, resistance is minor at 18.57, stronger at 18.89 and strong again at 20.39 from a previous high weekly close as well as from a psychological basis. On a daily closing basis, resistance is minor at 18,65, strong at the recent high close of 19.12 and strong again at the high daily close since Jul08 at 19,49. Above that level you have to go back to 2007 to find resistance at 20.84. Nonetheless, the most recent resistance above 19.49 if up at 22.67.
KGC seems to built a flag formation over the past 2 weeks with the flagpole starting down at the recent low of 14.33 and going up to the recent high at 19.42. The flag is the trading area between the 19.42 high and the most recent low at 17.45. A break of the top of the flag at 19.42 offers an objective of 22.54. The flag seems to still be in the building phase and drops down to, and perhaps slightly below, the 17.45 level are possible, maybe even probable. With the weakness seen over the past couple of days, after reaching the high of 19.42, it seems safe to assume that this coming week, the stock is heading down to test the bottom of the flag at 17.45 level.
It is possible that if the stock breaks above the 19.49 daily close resistance, that the psychological resistance at $20 will come into play. Nonetheless, the fact that the resistance up in the $19 area has been in place for 3 months and that a flag formation is currently in place, likely means that a break of that area will act like a rubber band and generate aggressive buying. Under that scenario the psychological resistance at $20 and the previous 2007 resistance at 20.57 will not likely prove to be obstacles of consequence.
It must also be considered that the monetary policy undertaken by this administration is of the kind where actual results will not be known for many months to come. As such, even the possibility of news that could affect the price of Gold negatively, are not likely to come out anytime in the near future. That means that a purchase of KGC at this time is likely to offer a low risk and high probability opportunity.
Purchases of KGC between 17.17 and 17.69 and using a stop loss at 16.22 and having an objective of 22.57, will offer between a 3.5-1 and 5-1 risk/reward ratio.
My rating on the trade is a 4.5 (on a scale of 1-5 with the strongest probability rating being 5).
BA (Friday close at 37.53)
BA broke below a very strong support level at $40 back in February 17th and proceeded to drop in a fast manner down to the next psychological support level down at $30 (low of 29.11). Nonetheless, the stock has been able to generate a rally over the past 2 week, on the coattails of the index rally, and has gotten back up close to the $40 level once again (38.68 intra-day high). Nonetheless, without any major fundamental news, or help from the indexes, the probabilities of the stock getting above $40 seem to be very limited.
It must also be mentioned that when the stock broke below the $40 level the last time, it did it with a gap between 39.89 and 39.74. That gap should have been closed this past week with the strength in the indexes, like so many other stocks have been able to do. Nonetheless, it seems the selling is so strong that only a high of 38.68 has been accomplished. Even if the expected rally in the first part of the week happens, it seems likely that getting up only to the gap area at 39.74 will expend a huge amount of effort on the part of the bulls.
On a weekly closing basis, resistance is strong at 39.53/39.58 from two previous and important weekly closes at those prices. In addition, the 20-week MA is currently at 39.20. On a daily closing basis, resistance is found at a previous daily close low at 38.74 as well as the most recent daily high close at 38.66. Above that level resistance from previous daily low closes and 1 daily high close is copious and decent between 39.19 and 40.46. In addition, the 100-day MA is currently at 39.75. Very strong resistance is found between 42.63 and 42.92. On a weekly closing basis, support is minor at 32.55 and major at 30.10. On a daily closing basis, support is decent at 36.85, from a previous low close of some consequence as well as from the 50-day MA at that same price. Strong support is found at 32.55 from a previous daily low close as well as from the 20-day MA. Major support is down at 29.29/29.51.
The inability of the stock to get up to the $40 level on this strong index rally has to be disappointing to the bulls. The gap up at 39.74-39.89 will still be working as a magnet, but it is evident that only if the indexes show further strength this week will the stock be able to get up near the gap. Nonetheless, not only will the gap act as resistance but the psychological resistance at $40 will make it almost impossible for the stock to get much above that level.
The major support down at $30 only shows a minor retest of the level when the stock fell back to 32.55. A drop back down to test the validity of that support is likely to happen if the indexes get into a corrective phase. With the strong chart obstacles facing the stock near the $40 level, it seems likely that a move down to support will be seen before any valid attempts to go higher occur.
Sales of BA between 39.00 and 39.74 and placing a stop loss at 40.50 and having an objective of 32.55 will offer a 4-1 risk/reward ratio.
My rating on the trade is a 3 (on a scale of 1-5 with the strongest probability rating being 5).
HD (Friday closing price at 23.63)
HD seems to be in a very well defined general trading range since October of last year between $17.5 and $25. Just 2 weeks ago the stock got down to the 17.49 level and just this last week the stock got up to the 50-week MA at 24.36. With such a clearly defined trading range for the last 6 months, there does not seem to be any reason to think that the stock will get out of that trading range for the immediate future.
It is also important to note that on a weekly closing basis, the stock made a new 11-year daily and weekly low close the week of March 6th and that low has not yet been tested successfully. If the indexes have in fact reached or are close to reaching a short-term top, it seems likely that HD will be heading back down to test the lows.
On a weekly closing basis, resistance is decent at 23.53 and very strong between 24.13 and 24.40, from 3 previous weekly high closes in that range as well as the 50-week MA currently at 24.13. On a daily closing basis, resistance is decent at Thursday's high daily close at 24.18, and strong between 24.40 and 24.70. Major resistance is at 25.26. On a weekly closing basis, support is decent between 21.53 and 21.58, strong between 19.29 and 19.49, strong again at 18.51, and major at 18.00. On a daily closing basis, support is decent at 23.02 from 3 previous low daily closing in that area. Below that, there is good support at 21.91 from a previous low close of some consequence as well as from the 100-day MA. Below that level no support of consequence is found until you get down to the psychological support at $20 as well as couple of daily low closes around 19.70. Very strong support is found at 18.51 and again at 18.00.
For the last 6 months, trading this stock between $18 and $25 has been basically a chart issue. The stock has been a very good stock to trade based on support/resistance levels and at this time there doesn't seem to be any reason to think that has changed. With Thursday's rally up to 24.36 it can be said that the stock has either reached a probable top to this rally or is within a few points of reaching it.
HD made a new 11-year low just a couple of weeks ago and with no fundamental change to justify a bull run, the recent rally has to be considered simply short-covering. Under such a scenario, the probability of a retest of the lows is high and actually needed, before any further attempts to break above the $25 level are tried. A move to the downside, though, may be somewhat labored as the stock on the way up, built quite a few decent support levels on the daily close chart. Nonetheless, on the weekly close chart, the most important of the two, there just aren't any supports of consequence that can be depended on. As such, if the indexes do correct to test the lows, it is likely HD will do the same.
Sales of HD between 23.95 and 24.20 and placing a stop loss at 25.59 and having an objective of 18.24 will offer a risk/reward ratio of almost 4-1. It is probable that after the first couple of days of trading this coming week, the stop loss will be able to be lowered. As such, the risk/reward ratio will likely be much higher.
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 closed on Thursday at 11.27 and on Friday at 10.98. Such action means that the stock now has a double top on the daily chart at 11.27 and that the double top on the weekly chart at 11.04 could be getting re-tested, successfully if the stock closes lower than 10.98 next week. Any way you look at it, it seems the stock is at a major pivot point that will be decided this coming week. NUAN was well supported this week as there are quite a few rumors that the company may be a takeover target by one of the large firms out there, such as CSCO. Nonetheless, the stock is now officially overbought and will likely follow the action seen in the indexes this week. Any daily close above 11.27 will likely lead the stock up to the 200-day MA at 11.85. In addition, there is a minor but evident previous intra-day high at that same price. The stock has an open gap between 12.41 and 12.73 that could act as a magnet if the stock is able to close above 11.27. It is also important to mention that on the weekly chart, the 200-week MA is currently at 12.35 as well as a decent previous high weekly close resistance at 12.26. A daily close below 10.85 will be a small sell signal and a close below 10.08 will likely thrust the stock down to the 9.08-9.42 level. Possibilities, though low in nature, still exist of the stock dropping as low as 8.52 on a weekly closing basis. One thing about the stock, it certainly has very clearly defined chart levels to watch. LEN was successful in closing above a previous weekly high close of some consequence at 9.99 but still closed below a previous low weekly close of some consequence at 10.31. Closing around the low $10 level was something to be expected when the indexes continued their rally. Nonetheless, same as the indexes having gotten close to strong resistances, LEN seems to have done the same. The stock did rally during the week up to the 50-week MA at 11.15. Nonetheless, the stock was unable to get above and fell back. On the daily chart, though, the stock has broken and closed above the 200-day MA at $10 and if the stock is able to get above the high seen on January 8th at 11.56, it could go substantially higher. By the same token, any close below $10 this week, and more importantly below 9.30, will likely thrust the stock down to test the weekly close support at 6.52. There is some decent support, though, at 7.88 - 8.11 that could hold the stock up even if the stock is under selling pressure. AMZN is giving definite signs that a top is likely forming. For the last two weeks the stock has been able to get above the 100-week MA (currently at 72.40) but in each occasion the stock failed to close above the line. No sell signal on the weekly chart was given this week, as the stock was able to close above last week's close at 69.96. Nonetheless, on the daily chart a minor sell signal was given when the stock closed below the previous daily low close at 72.40, as well as a previous high daily close, at 72.76. This was the first time since March 9th that the stock has been able to close below a previous daily low close. Nonetheless, with a close above the previous weekly close at 69.96, no signal was given that the upside has reached a potential top. As such, the action this coming week will likely be closely connected with whatever the indexes end up doing. The stock did leave an open gap between 72.29 and 72.64 and if the stock starts trading lower this coming week that gap could turn out to be a breakaway gap. Nonetheless, the probabilities of the gap getting closed are high and rallies up to 73.12 could be seen. Nonetheless, on a daily closing basis, the 72.40-72.76 level will now likely become very strong resistance and if the stock is unable to get above that level, lower prices are likely. Possible objective to the downside over the next week or two would be a retest of the 200-day MA the stock has been trading over. That line is currently at 63.85. RIMM barely closed above a previous weekly close high at 44.80 as well as where the 20-week MA is located. The close was not by a sufficient amount that could be called a breakout. The stock does have a previous breakaway and runaway gap on the way down that was likely tested on Friday. The runaway gap is between 46.68 and 47.75 and with the early morning rally on Friday up to 46.49, it might be said that gap was tested, likely successfully if the stock falls below Friday's low at 44.80 on Monday. The stock also got up and slightly above the 50-day MA at 46.10. Nonetheless, the stock was unable to hold on to any of its early gains and closed in the red and near the lows of the day. It is possible that Friday's high was a spike high and that the upside rally has been seen. If the stock starts trading on Monday below 44.80 the possibilities of higher levels being seen will diminish. By the same token, if the indexes do show some strength this week, a new attempt to get up to and above the bottom of the gap at 46.68 could occur. It seems like a pivotal week for the stock.
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1) AMTD - Shorted at 13.26. Covered short at 13.56. Loss on the trade of $30 per 100 shares plus commissions.
2) KGC - Liquidated at 19.19.Averaged long at 15.35. Profit on the trade of $768 per 100 shares (2 mentions) minus commissions.
3) DIOD - Shorted at 10.56. Covered short at 11.09. Loss on the trade of $53 per 100 shares plus commissions.
4) JPM - Purchased at 27.69. Liquidated long at 26.51. Loss on the trade of $118 per 100 shares plus commissions.
5) EPIQ - Liquidated at 17.33. Averaged long at 15.83. Profit on the trade of $300 per 100 shares (2 mentions) minus commissions.
6) AMZN - Shorted at 72.85. Covered at 74.01. Loss on the trade of $116 per 100 shares plus commissions.
7) LEN - Shorted at 9.17. Averaged short at 9.355. Covered short at 10.11. Loss on the trade of $143 per 100 shares (2 mentions) plus commissions.
8) STP - Liquidated at 10.60. Purchased at 6.88. Profit on the trade of $372 per 100 shares minus commissions.
9) JPM - Purchased at 27.63. Covered long at 27.29. Loss on the trade of $34 per 100 shares plus commissions.
10) WDC - Covered short at 18.27. Shorted at 17.92. Loss on the trade of $35 per 100 shares plus commissions.
11) GE - Covered short at 10.07. Shorted at 11.15. Profit on the trade of $108 per 100 shares minus commissions.
12) RIMM - Shorted at 45.21. Stop loss at 47.45. Stock closed on Friday at 45.01.
13) VLO - Purchased VLO at 18.61. Liquidated at 19.68. Profit on the trade of $107 per 100 shares minus commissions.
14) LEN - Shorted at 10.30. Stop loss at 11.35. Stock closed on Friday at 10.26.
15) AMZN - Shorted at 74.59. Stop loss now at 75.09. Stock closed on Friday at 70.52.
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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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