Go With The Flow
I thought I would open with a quick peek at a trade that I took on Friday. As
you know, I love to trade the strongest sectors, so do not be surprised what
sector this trade was in — energy. I sold the stock at roughly 12:59PM on
Friday, at 40 1/16, only 1/8 off the day high. While everyone was dumping the
techs, they were moving into the defensive issues.
Â
Today’s Tech Watchlist:
(
CMTN |
Quote |
Chart |
News |
PowerRating),
(
AVGN |
Quote |
Chart |
News |
PowerRating),
(
CTIC |
Quote |
Chart |
News |
PowerRating)
Copper Mountain
(
CMTN |
Quote |
Chart |
News |
PowerRating)
broke down from its near-term trading range on Wednesday but did not really
continue on Thursday. The lightly-traded pause of the last two days may be
nothing but a rest before another leg lower. In a weak tech market, stocks that
are not in favor tend to get mauled. CMTN is far off its highs and may see more
selling if investors get scared again. Watch for a move below Thursday’s
intraday low.
For you low-level-setup fans out there, I want to take a quick
look at Avigen
(
AVGN |
Quote |
Chart |
News |
PowerRating). Like many stocks in this sector, it’s quite a ways off its lows,
and in a basing pattern. What caught my attention was the high-volume rally out
of the mini-triangle that it formed. Once again it is trading near resistance.
Add this one to your list and watch for a move above this key level. If this
type of volume activity continues, there may be more excitement to come. Friday
was the highest volume day of the last 27 days.
Lastly, why not take a look at a stock that’s actually in some
sort of trend other than a trading range, Cell Therapeutics
(
CTIC |
Quote |
Chart |
News |
PowerRating). The
stock was relatively idle until about two weeks ago when volume started to
really pick up. It has seen relatively heavy trading as it heads north. Most
importantly, most of the pullbacks have held the near-term trend line. As with
any channel formation, the goal is to use bounces off the trendlines for trading
opportunities. Take a look at my trading course for more information on how to
trade them.
Â
Until later,Â
Do you have a follow-up question about something in this column or other questions about trading stocks, futures, options or funds? Let our expert contributors provide answers in the TradingMarkets Question & Answer section! E-mail your question to questions@tradingmarkets.com.
For the latest answers to subscriber questions, check out the Q&A section, linked at the bottom-right section of the TradingMarkets.com home page.