Slim Pickings
It
is a cat and claw fight each trading day. We see glimmers
of hope that the markets may run again, only to get slapped in the
face back to reality. The key is to monitor the economic numbers and
technical patterns until we receive the sign the markets are a go.
Until then we should continue to look for stocks to watch and if you
are trading, trade with caution. I hope that tomorrow‘s
GDP numbers will fuel the markets (Yes, I know "hope" is a
four letter word).
Breadth was positive for the
session. On the NYSE advancers beat decliners 18 to 11 and for the
Nasdaq advancers led decliners 19 to 13.
Not much came up on my
screens today. Stocks which were setting up were slammed down.
Well,
like I said it,
is a cat and claw fight, so why should this be different.
Pharmaceutical Product
Development (PPDI)
is pulling back to form a handle of a mini-W shaped base. The stock
looks poised to test its highs again as it did fairly well in trading
today.
Dynaco International (DYII)
is trading within a 4 month trading range. Continue to keep the stock
on your watchlist.
MetroOne Telecom(MTON)
is forming a high level symmetrical triangle. The companies earnings
increased (275%,
400%,
267%
and 417%) and is showing a 5 year growth rate of 97%.
Among the Exchange Traded
Funds moving higher in the session, the Semiconductor Holdrs (SMH)
gained 5.8% closing above its 20 period moving average.
Trekking higher also was the
Morgan Stanley High Tech 35 Index Fund (MTK)
which closed up 5.5%.
The Broadband Holdrs (BDH)
rose 4.5%, followed by the Internet Holdrs (HHH)
tacked on 3.8%.
ETF’s losing were led by
WEBS. The WEBS Hong Kong (EWH)
slid 3.0%.
WEBS Australia (EWA)
moved lower 1.7% and the Ishares Japan (EWJ)
fell 1.2%.
Remember that all securities
are risky. In any trade, you should always reduce your risk by
adjusting position size and placing open protective stops where
you will sell your long or cover your short in case the market turns
against you. For an introduction to combining price stops with
position sizing, see Loren’s lesson, Risky
Business.
Greg