Here are 8 stocks, whether you want to go long or short

The stocks
that interest me this morning comprise of 4 longs and 4 shorts.
These are
stocks that I am watching like a hawk. I watch all the stocks I am
involved in and am paying particularly close attention to the following
8. Lets get into the stocks first and if there is time I will offer my
two cents about the overall trend expressed by the current market. It
pays to respect the tape and be on the right side of the trend. The
following stocks have established themselves in advancing and declining
trends. Money is made when it is placed in instruments that move.
Movement is necessary to generate return on assets. Being on the right
side of the move enables positive performance and that translates into
profits. That is what being involved in stocks is all about. It takes
being at risk to generate profits. It also requires active management of
the risk taken to preserve the stake. The following stocks offer
profitable chances long and short.

Cardinal Health
(
CAH |
Quote |
Chart |
News |
PowerRating) 60.60

Nice chart.
Just what I am seeking in a long. It has recovered after a brutal decline
building a long base after an intermediate term advance. A recovery
bounce and base building is now shaping into a nice advance. I am in it
with a toe in the water patiently waiting for CAH to cross 61.10 on a
close to build a more serious position. That is the intention as it
currently trades near that zone and that is its 52-week high made on
6/23/05.Rising above that point is a signal to buy. That being real will
inspire more confidence and enhance current money flow. The stock is up
just 4% this year. It is beating the market but an extended stock it is
not. It is timely. The risk is low. It trades less than 10% above its key
inflection points. It has plenty of headroom up to 68 where it runs into
stiff resistance. It is good for a trade up to that 68-70 zone. Place the
stop at 57.10

Corning
(
GLW |
Quote |
Chart |
News |
PowerRating) 20.81

GLW is
extended. It has taken off and any pullback is a chance to either add to
or pick up with fresh money. It could easily pullback to 20. That is a
good zone to begin grabbing shares. I am adding to it as it comes in. If
the market does its typical corrective thing in September as we move into
the weaker part of the month then GLW presents itself well. It is
attractive at 20. That is the ideal spot to pick up shares. It trades way
above its 200 day moving average and that tells clearly of its extended
condition. The 200-day ma is 14.36. So simply buy it coming into 20 and
place the stop under its 50-day line at 18.99. Turn GLW into a low risk
try using the 50-day line as a guide for any action taken. The stock is
good to get down to that line.

Compania de Minas Buenaventura
(
BVN |
Quote |
Chart |
News |
PowerRating) 28.91

BVN is in great shape yet I took some off the table yesterday. If it is
in such great shape then why did I sell a piece? It is good form to trade
around your positions. I trade around my positions all the time by
trimming and reducing, or pyramiding. The position is still in place it
is just smaller. I trimmed after it bounced yesterday. The bounce came
after a sell off in modest volume. I did what I felt the right thing to
do and that is sell a piece with the intention of buying back at a lower
price point later. The stock is angling toward the high made way back in
December 2003.A rise above that level and no telling where this eagle
lands. Right now it is extended. Buy it coming into to the 26-26.50
zones. Place the stop at 23.99.

Cypress Semiconductor
(
CY |
Quote |
Chart |
News |
PowerRating) 15.86

All that
happened yesterday in the semi conductor space was a bout of profit
taking in light volume. This is a technically healthy stock that ought to
be bought from here down to 15.25.It is short term negative at that point
but look at the intermediate and long term prospects and notice the risk
reward and turn your back on the short term and empty yourself of that
impulse to focus on the here and now and look further away at what’s
possible. What is possible in CY is a move into the 20 zone. It will not
get there on a straight line. It will ebb and flow. The intermediate and
long-term technical view in CY is positive. It currently trades below its
10-day line, which is 16.04.So it is short term negative and a chance to
pick up shares coming in. Place the stop below its 50-day line for a
trade and its 200-day line for the longer term.

The St. Joe Company
(
JOE |
Quote |
Chart |
News |
PowerRating) 67.83

The stock
completed its top formation and is in the outset of a decline. The best
time to short a stock is at the outset of a decline. Look at the chart
and see how the pattern of trade developed. The stock has been dropping
in heavy trade. It peaked in July at 85.25. It would be better relative
to risk to sell JOE short on a bounce up to 70. The 200-day moving
average is 72.07. The 50-day is above 78. The stock is oversold and a
bounce will provide a chance at it short. It doesn’t mean a toe in the
water is not suitable right now and then add to the position should it
climb back to 70 in a rally. Place the stop above the 200-day moving
average and that tightens the risk.

Owens Illinois
(
OI |
Quote |
Chart |
News |
PowerRating) 23.66

OI is a
broken stock. The way to handle broken stocks is to sell them short. A
lovely top has formed after a nice advance and the stock is behaving in
classic manner. It is time for it to begin its descent and it pays to
climb aboard and join the bears hugging and squeezing the life out of it.
It is near the top and ready to fall over the edge. It is rolling over in
classic manner. It peaked on 8/30 at 27.50. It now trades below all key
inflection points. It bottomed on 12/10/03 at 10.73.The advance is over,
the top has formed, and the decline has just begun. OI is up over 4% this
year, yet down over 3% in the last 5 days. It could land at 20. Use the
50-day to stop the loss. Use the 200-day to punt the rest. The 200-day is
24.66. If the decline is true then the stock is not likely to rise above
that point any time soon.

Chiquita Brands International
(
CQB |
Quote |
Chart |
News |
PowerRating) 23.94

This stock is falling
apart. Check out the chart and see for yourself. CQB is inviting the
bears to come around and take a bite out of it. It is currently
experiencing a heavy dose of selling. The pressure is taking down the
stock after a stormy and choppy advance that began in November last year.
That advance ended a while ago and the top that has formed is decent
enough. Not a major long term top formation but a top nonetheless. The
stock topped in July at 31 and change. Look where it trades now and the
downturn has taken it below key lines of support as well as important
inflection points. The stock is oversold and has decent support in the
low 20’s.Place the stop at the 150-day line at 27.01.

Abbott Labs
(
ABT |
Quote |
Chart |
News |
PowerRating) 43.85

This stock is just
falling apart. I have been involved long and short and now very short as
I added to the position I carry yesterday. The top can be seen by gazing
at its chart. It is a sight for sore eyes. I tell you that it is sight to
behold. So how do you play it now? Sell into strength. Sell back up to
the 45-46 zone. It ought to fail miserably at that point. The decline is
not mature. It actually recently began after the stock failed to close
above 50 in the middle of July. It has been declining ever since. That is
the completion of its top. The intermediate term decline began when the
stock broke below its 50-day line in heavy trade on July 13^th.
Now it is in full fledge decline. Pointing lower on all cylinders. It is
currently oversold and ought to bounce a bit. That is the time to get
involved. Sell short in the 45-46 zone. Place the stop above its 200-day
line at 47.01

My two cents is a concern
that the SPX
(
SPX |
Quote |
Chart |
News |
PowerRating) fails to hold its 50-day line at 1225. The DOW
(
DJX |
Quote |
Chart |
News |
PowerRating) will drop
below all key inflection points under 10500. It is close. The COMP could
not hold its 50-day line yesterday. Both the COMP and the DJIA are
trading below those lines. The DJT is really stumbling now and there are
numerous shorts to choose from among that group. The big bright spot in
the planet right now is the action expressed by the NIKKEI 225.Another
powerful session today as confidence in Japan is building. The NIKKEI 225
is close to 13k.The position carried in EWJ remains in place. Right now
the futures are slightly positive and markets in Europe and Japan rise.
The SOX is in good shape. A rise above 499 and it takes off. It is close.
It pays to weigh heavily in semi conductor stocks. I am in a few. Been
riding a nice wave in
(
NSN |
Quote |
Chart |
News |
PowerRating),
(
CY |
Quote |
Chart |
News |
PowerRating),
(
NVDA |
Quote |
Chart |
News |
PowerRating), and others.