TradingMarkets’ 7 Stocks You Need To Know About For Friday
Stocks were mixed Thursday,
with the averages hugging the flat line much of the day.
Prices were pushed up in August, with the CPI
coming in at a 0.5% increase. The core inflation rate rose 0.1%. Jobless claims
last week rose 71,000 to 398,000; the figure does not include the effects of
Katrina. The Empire State Manufacturing index fell in September, to 17.0 from
23.0 in August.
After the close, Adobe
(
ADBE |
Quote |
Chart |
News |
PowerRating) beat by
0.02. Tektronics
(
TEK |
Quote |
Chart |
News |
PowerRating) beat by 0.02 but guided lower.
Here are a few stocks to watch on Friday:
Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating) stopped at
the gap area. If it happens to fall through it, the stock has secondary support
at the lower line.
Dawson Geophysical
(
DWSN |
Quote |
Chart |
News |
PowerRating) took out a
potential triple top high. Volume was good. Breakout players might like this one
(but remember, not all breakouts work).
Engineered Support Systems
(
EASI |
Quote |
Chart |
News |
PowerRating)
received a $14.8 million contract to refurbish military trailers coming home
from Iraq.
Trinity Industries
(
TRN |
Quote |
Chart |
News |
PowerRating) guided
higher.
Korn Ferry
(
KFY |
Quote |
Chart |
News |
PowerRating) got whacked. "Why,
Brice, are you showing me stocks like these?" you ask. Well, like that volume
pick-up for the past few days, which may indicate a temporary halt of the slide.
On a related topic, I received an email from a
gentleman pointing out that Intel (mentioned on Wednesday night) was in rough
shape technically. He referred to several indicators which I did not put on the
chart. To refresh your memory, here’s what I wrote Wednesday night regarding
Intel:
"This is a weekly chart of Intel
(
INTC |
Quote |
Chart |
News |
PowerRating).
Looks due for a bounce soon, possibly at that trendline, possibly sooner."
I appreciated this gentleman’s email and wanted
to say a few things about the charts I show in this article, what I am looking
for and how you can best use this information.
First, if I allude to a long bias on a stock, it
does not necessarily mean I think the stock will run for weeks, or even days. It
may, in fact, just be a day trade. Many of the selections I’ve shown you here in
this column have done nothing at all the following day. That’s the reality of
trading. You must use your good money management skills in any position you are
in. Side note: I remember there was a study (and forgive me, but I don’t
remember who did it) that found that you could make money with random stock
picks IF you exercised excellent money management.
Second, the primary indicators are price and
volume–everything else is simply a derivative of these. Just because an
indicator "says" a stock will go in in a certain direction does not mean it
will. By the same token, just because a stock is mentioned in this column
doesn’t mean it will do well in either direction (I sometimes refer to weak
stocks, on which it is possible to make money on the short side.)
Third, whenever possible, I try to find stocks
that have a catalyst for a move. This is news of some sort: earnings, guidance,
FDA approvals, litigation, new products, etc.
Fourth, I will always try and show you something
interesting chart-wise. Some of the news-related stocks don’t necessarily have
interesting charts and I put those in the column because there is a catalyst. I
look for, among other things: breakouts (and keep in mind they don’t always
work), breakdowns (which can and do bounce), moving average hits (50 and 200 MAs
especially, trendlines, Fibonacci levels, volume patterns. I get especially
charged up when I see a confluence of these.
Lastly, please don’t take any of the stocks
mentioned in this column as "recommendations." I’m really just trying to give
you a few simple ideas, a little education, hopefully, and sometimes even have a
little fun.
I hope this gives you a better idea of what is
happening here in this column. If you have questions or comments, please email
me at bricewightman@tradingmarkets.com.
Brice Wightman