Interesting Stocks
Each evening we focus on the most interesting aspects for the upcoming trading day. The comments are based on observations of the nightly updates of the Stocks/Sectors and Market Bias pages. They are provided for educational purposes only and are not intended to be direct trading advice. Also, keep in mind that these remarks are made up to 12 hours in advance of the markets opening. Therefore, overnight events may alter the outcome of these observations.
At the time this is being published, the S&P Globex Futures are trading 1.00 points higher and the Bond Market Futures are trading down 3 ticks.
Network Peripherals [NPIX>NPIX], on the Pullbacks List, is a 3 bar pullback that looks poised to resume its uptrend. Brocade Communications [BRCD>BRCD], also on the Pullbacks List, is a Trend Pivot Pullback and a Trend Knockout. The Trend Pivot Pullback is where a stock has a one day false rally during a pullback. This forms a “pivot†point-a high surrounded by lower highs. The Trend Knockout (TKO), is when a strongly trending stock sells off and takes out (at least) the prior two lows. Based on these two patterns (see archives for more examples), the stock looks like it has the potential to resume its uptrend, especially if it can take out yesterday’s pivot high (a).
For you breakout players, Clearnet Communications [CLNTF>CLNTF], mentioned last night (see archive), broke out of a cup and handle today to close at a new high.
On the short side, several stocks look interesting to me tonight. Pitney Bowes [PBI>PBI], mentioned last night (see archive), looks poised to challenge its old lows (around 42 1/2). Harmonic Lightwaves [HLIT>HLIT], on the Implosion 10 Technology List, appears to be breaking down out of an inverted cup and handle formation. Express Scripts [ESRX>ESRX], on the Proprietary Implosion List, looks poised to continue its meltdown.
BTW, make sure you sign up for the Connors/Boucher Stock Market and Mutual Fund Timing Course (free to members). Judging from what I’ve seen so far, it should be quite useful for stock, mutual fund and index trading.
Best of luck with your trading on Wednesday!
Dave Landry
PS – Reminder: Protective stops on every trade!