Stock Trading Ideas

Mid-Week Watchlist Updates

Our momo stock (ENER), featured in this watchlist is showing some legs by breaking out of 8+ weeks base. As far as initiating a position, I would wait for it to hold here or show some strength for some days because I don’t want it to be one more breakout failure as it has become a theme of recent breakouts.

For the watchlist updates:

UTHR - A break below 50dma would be bad and as such biotechs are in pullback mode at this point.

LMT - Looks to be forming a base and a test of breakout (pullback) at 111 on low volume would be constructive. Its too extended from its 20/50 dma.

GD - Looks to be forming a handle. A break above 94-95 would be good for 10-15 points.

ESRX - Nice pullback (handle area) on low volume. Wait for breakout and hold that breakout above 75-76 area.

GENZ - Pulling back nicely to the 80-81 area and should hold this support. Next support is at 77.

EQ - Pulling back to the breakout point at 48 on declining volume.

GWW - Pulling back on low volume.

ITT - Holding nicely at the current levels.

GILD - Another biotech being hit hard and should hold support at 50dma (54).

FSLR - I still believe that solar stocks are rallying in the bear phase. This one sure looks to go down hard but at this point it is bouncing up.

WLT, GIFI, EXC, ANR, ESV, FE, MON - As I had expected commodities stocks are catching the bid here and as they move to their prior support (now resistance), they are looking ripe to be shorted again with a tight trailing stop loss.

At this point, I’m holding small positions both on the long and short sides just to probe. Biotechs which was leading the market coming into follow-through rally looks to be under pressure. With commodities on fire and no leadership propping up in the market, I’m still in 88% cash and wouldn’t plunge into the market. I would be more cautious to go long in this drowsy market.

Have fun and stay liquid !!!

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