The Number-One Stock On My Watchlist
Our strategy for today:
The DJIA
The faithful Dow stayed nicely within our channel
today. The potential double top formation, mentioned yesterday, gained a little
more substantiation with a closing price of 10623, down 17 points. A low of
10610 was recorded, thirteen points above the critical lower channel line of
10597. As you know, I use the cash DJIA to trigger system entries in the DIA.
The system is FLAT the DJIA as of the open Tuesday. I am expecting downward
movement from here, but will mechanically trade the system regardless of my
bias.
Oil
Well, an intraday spike to all time highs in the
oil trade, smashed me out the shorts Monday. Regardless of the non-event
“event” of the King’s passing in Saudi Arabia and the resulting high Monday, I
am maintaining my short bias. The public bullishness and doomsday-type
predictions from hype sites like
www.peakoil.com serve only to strengthen my contrarian viewpoint. My
short trigger in OIL is 60.97 where I will begin to short once again. Let’s
see what happens here!
The Dollar
Technically, a “triple top” formation is evident
on the daily chart from the first of July onward. However, the turmoil in
Europe, along with multiple confusing factors make entering a trade at this time
a pure gamble. Staying flat here.
US Equities
I am remaining flat across the board in US
equities. I have narrowed down yesterday’s watch list (and added 2 new ones)
and am ready to pounce! Remember, these are potential swing trades.
It’s not possible in this format to provide you with every day trade. Here we
go!
GOOG
(
GOOG |
Quote |
Chart |
News |
PowerRating) – This is the number-one
stock on my watch list. It appears to have found some support on the 50-day
MA. I am expecting a drop to the 220 range but am waiting for the perfect time
to enter. Stay tuned!
GM
(
GM |
Quote |
Chart |
News |
PowerRating) – The embattled auto maker is
showing amazing resilience despite the negative sentiment. There is about to be
a 50/200-day MA crossover that may take place today. I am staying flat at this
time.
BOOM
(
BOOM |
Quote |
Chart |
News |
PowerRating) – What a great
symbol! I will be entering this stock long should it hit 44.77 today. I
like this one!
DNA
(
DNA |
Quote |
Chart |
News |
PowerRating) – A daytrader’s
favorite stock for some time. All signs point toward a continuation of the up
move and I will be entering this stock long at 91.45 if hit today.
Thanks for reading!
Best Wishes in the market,
Dave G
David S. Goodboy (marketsurfer) has been
trading professionally for over 14 years. Mr. Goodboy trades ETF’s, stocks,
index futures, energy futures and options. His primary focus is a unique
multi-time frame index trading system based on a combination of time/price
cyclical studies and statistical models. David was a trader/partner with
Biltmore Capital, traded with an option arbitrage firm, and is currently in the
launch stages of IntrendX, a global multi-strategy fund.