I see multiple setups for these 6 stocks

Thursday provided
the day trader with excellent opportunity to the long side as well as to the
downside.

The energy sector was driving the markets in the manner in which you could take
multiple trades in a number of different stocks. I told you to keep an eye out
for
(
CHK |
Quote |
Chart |
News |
PowerRating)
,
(
SWN |
Quote |
Chart |
News |
PowerRating)
, and these stocks were extremely active. Some of the
new stocks that popped up on my scanner today with excellent opportunity were
(
VLO |
Quote |
Chart |
News |
PowerRating)
,
(
SLB |
Quote |
Chart |
News |
PowerRating)
,
(
XOM |
Quote |
Chart |
News |
PowerRating)
,
(
HAL |
Quote |
Chart |
News |
PowerRating)
,
(
TXU |
Quote |
Chart |
News |
PowerRating)
, and
(
SGY |
Quote |
Chart |
News |
PowerRating)
.

CHK was my best stock today and provided me with a number of trading
opportunities. I traded VLO, SGY, and a few others in a similar manner. CHK
opened down $2.25 at 32.25 and I immediately was looking for a bounce. The
futures were up and the stock had been hammered over the last few days. The
tape, NYSE openbook as well as the manner in which the specialist was moving
around the stock provided me with enough confirmation to enter into multiple
trades.

The first 45 minutes CHK was extremely choppy and did not provide a clear
direction for the stock. I was long anticipating a bounce as well as short
trying to stay with the trend. I would make 10 cents here and lose 10 cents.

At around 10:45 PST I realized that buyers in the market were taking out large
offers. I was able to identify this through the tape as well as the large bids
accumulating in the NYSE openbook. I felt that was the confirmation I was
looking for and went long in anticipation of the bounce. I went long at 32.80
and added into my position every .25 cents up until 33.50. At this point I
followed the NYSE inside quote with a .10 stop. I eventually got stopped out at
$34 after CHK printed $34.10.

I then flipped CHK at $34 and took a small profit but CHK clearly set up a
reversal to the downside at 33.50. CHK showed up with some large offers and the
market started to sell off I went short at $33.50 and took that trade for a nice
gain. At the end of the day the market rallied and I once again got the
confirmation to go long CHK and hopped on for the ride up.

Compare the $INDU chart below to CHK above and see how closely they resemble
each other. If you get a chance pull up some other oil and energy stocks and
compare them and you will see the multiple opportunities that they each
presented.

On Friday I will definitely keep an eye on the gas, oil, and energy stocks and
be prepared for a bounce back or if we have a weak market I will be selling
through the lows of the day. Remember CHK, SWN, VLO, and SGY are some of my
favorite energy stocks. Keep an eye out for
(
XOM |
Quote |
Chart |
News |
PowerRating)
and
(
SLB |
Quote |
Chart |
News |
PowerRating)
as well.

Mike Kestler

Pease e-mail with any questions
you might have at


mkestler@evotrading.com

Michael Kestler is a
full-time professional trader and managing partner for Evolution Capital LLC., a
proprietary trading firm. Mr. Kestler specializes in intraday trading of NYSE
listed stocks. Before founding Evolution Capital LLC., Michael began his career
on the floor of the CBOE. Mr. Kestler was previously a Mid-Cap and Nasdaq Market
Maker.
www.evotrading.com