Why I love these 2 stocks that Wall Street hates
DJIA
The shorts were profitably closed out yesterday when the DJIA broke through
the stop level of 10578 briefly. The system is flat entering the open. The
channel is currently very wide 10723–10537. Remember, long above, short
below and flat in the middle. Flat/short bias
OIL
I am staying flat oil for now. The trading levels have not developed
enough for me to have confidence as of today. However, I am maintaining my short
bias. Flat/short bias
US Dollar
The EUR/USD appears to be continuing its downward trajectory. Shorts
were entered once again when 1.2277 broke and I am currently holding expecting
additional downside. Short pair/profitable
Equities
Sometimes the greatest opportunities come at times of great
distress.  This is why I like to look at companies that have recently
declared bankruptcy as potential longs.  For example United Airlines
fired chapter 11 on December 9, 2002 with the stock trading at .64, 4 days later
the stock reached over $2.00 a share. There are numerous other examples of
nice bounces occurring after a bankruptcy filing. This is why I am
watching Northwest and Delta very very closely at this time. Here’s my strategy
for these struggling airlines:
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NWAC |
Quote |
Chart |
News |
PowerRating) A potential bankruptcy play as we speak. I will be
entering longs if 1.05 is violated on the upside. Flat/long
bias
(
DAL |
Quote |
Chart |
News |
PowerRating) My current leading potential bankruptcy play. The go long level
is 1.03. Flat/long bias
(
GOOG |
Quote |
Chart |
News |
PowerRating) Remaining flat until 297.97 breaks on the downside.
Flat/short bias
(
EBAY |
Quote |
Chart |
News |
PowerRating) Holding shorts entering the open today. Short/profitable
(
CPV |
Quote |
Chart |
News |
PowerRating) This one is oscillating between profit and loss in the
portfolio. I am going to give it a little more time before I look for an
exit. Long/loss
(
IBIS |
Quote |
Chart |
News |
PowerRating) This chip maker is staying well below the go long level of 2.13.
Flat/long bias
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.