Stocks of Interest
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 1.80 points higher and the bond market is trading down 1 tick..
Autodesk [ADSK>ADSK], on the Pullbacks List, is a textbook flag pattern. Notice the strong uptrend that occurred before the pattern and the slight “drift” down in the flag.
Continuing on the pullback theme, MRV Communications [MRVC>MRVC] closed well and looks like it may be resuming its uptrend. Yesterday, JD Edwards [JDEC>JDEC] sold off but subsequently recouped most of its losses (a). This may have shaken out the weak hands. Then today, the stock closed well (b) gaining back all that was lost. The combination of these factors suggests the stock is poised to challenge its old highs.
Infospace.com [INSP>INSP], on the Internet Fab 5 and Proprietary Momentum Lists, is a Trend Knockout (see archive from last night for an explanation of this pattern).
For you breakout players, Advanced Fibre Communications [AFCI>AFCI], on the New 60-Day Highs on Double Volume List, broke to new highs on an expansion of range and volume today out of a high level consolidation/mini cup.
On the short side, Antec [ANTC>ANTC], mentioned last night, still looks like it has the potential to resume its meltdown.
Best of luck with your trading on Friday!
PS – Reminder: Protective stops on every trade!