TV: To Watch Or Not To Watch?
Traders often ask me if I watch any of the major financial news channels
during my trading. I do. I do not use the information that the TV provides as
trading advice, rather, I use it to know what the rest of the world is thinking.
Just think of how many millions of people are watching the major financial
channels. It is not uncommon to see a stock move on a report. Look what happened
to Newport
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PowerRating) on Monday when it reported that people were getting its
ticker confused with that of another stock.Â
When I see a move like this one, I want to know what is driving it.
Â
Today’s Watchlist:Â Â
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ADRX |
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PowerRating),
(
CTIC |
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PowerRating),
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PowerRating)
The green line on the charts is the 20-day MA and the blue line is the
50-day MA.
Andrx
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PowerRating) has been trying to take out its July highs for
quite some time now. It’s been consolidating in a tight range for the last three
days near the high. Set your alerts near the level that I’ve highlighted below.
We’ll watch for a move above this level, followed by a continuation. The stock
has been supported by the 50-day MA since it crossed above the 20-day MA.
Cell Therapeutics
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CTIC |
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PowerRating) bounced off a trendine on
Wednesday morning. It fell back after opening just under resistance. Will this
trendline be able to push CTIC through resistance? Biotech is strong, but the
market is weak. If the market turns, it may lead biotech even higher. For now,
we’ll simply set some alerts near the highs and watch for a breakout.
The other way to play CTIC would be to look for shorts on a
break of the trendline. On a break of the trend, it may pull back to the 20-day
MA, highlighted in green. Of course, pullback traders may want to buy on a
bounce. There are several setups here, for each different trading personality.
CacheFlow
(
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PowerRating) broke out to a new high on Tuesday. Of
course, along with the rest of the market, it’s pulling back on Wednesday. With
this type of breakout from a cup formation, we want to see another up day to
take out the intraday high from the breakout day. On that note, set your alerts
near Tuesday’s intraday high and watch for a high-volume day.
Until later,Â