You can play both sides with these 4 stocks
Let’s get into a few stocks.
Stocks that I have been involved in for quite a time. Let’s see what is occurring
relative to the pattern and performance of a few longs and a couple of shorts.
Autodesk
(
ADSK |
Quote |
Chart |
News |
PowerRating) 45.59
Nice movement. Good action. Someone emailed me
the other day about being careful in ADSK. Careful is a necessary way of being
when involved in any instrument of risk. Isn’t a doctor careful no matter what
the surgical procedure? Focused is a necessary way of being as a player in this
game. ADSK has performed well. No complaints about this stock as I come home and
examine its pace of trade while I was gone. It performed nicely. ADSK is up
5.88% in the last 5 days. It is up over 20% this year. Not bad. It’s in great
shape right now and the rise on Friday came in better then average trade. Place
the stop at 41.99 for a swing. Short-term traders may use the 10-day line at
43.29.
Apple Computer
(
AAPL |
Quote |
Chart |
News |
PowerRating) 55.66
A good stock. Simple isn’t it? A stock that is in
an advance that won’t quit. It is slightly extended but ought to continue to
outperform. How do you get involved at this stage of the game? The advance is
mature so it is a bit tricky. Place appropriate stops. Advances plateau and
plateaus find the edge and roll over. AAPL is in a solid advance and the current
quarter appears to be fabulous. The holiday season will be kind to Apple
Computer this year. Lets see how that affects the stocks. Lets see the reaction
of players in AAPL to the good business generated by superior products
brilliantly marketed. Place the stop at 49.45.
M-Systems Flash Disc Pioneers
(
FLSH |
Quote |
Chart |
News |
PowerRating)
30.77
Been involved in this instrument for a while.
Toot the horn. I am tooting my own horn for a change and say that this trade
actually worked very well. I will get into more stock if the move is confirmed
by a rise above the near term high made just the other day at 31.59. A rise
above 31.60 and that is a clear signal to get hold of some of the shares and
grab it. That is all that has to happen. Simple. Place stop loss to protect at
27.75.
Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating) 21.25
I am tooting my own horn again because, yes,
because, I actually do get it right occasionally. Have you noticed? Look at the
action in PFE. Look at that sweet spot for those that had the gumption to dwell
on the dark side in this nasty stock. PFE stinks. So exploit the bad odor and
sell it short. That is really all that needs to be said about PFE and BMY. Those
are two drug stocks that I have done well being short. Turn darkness into light
and let the bleak horizons work in your favor going short both PFE and BMY.
Perhaps a bounce may occur to adjust an oversold condition. Look a the charts of
each instrument and let the tape provide the necessary confidence to get
involved on the right side of PFE and BMY. The right side still is the short
side and I am happily profiting in the short position carried in each. I did not
get involved in those lovely shorts to scalp a nickel here and there. That is
not the reason for the trade. They are two stocks that are in decline and the
full impact of any decline or advance never happens in a moment. It happens
during the course of many moments strung together and that we call time. Look at
the great action those two miserable stocks provided to those smart-ass traders
that are short. Place the stop in these extended shorts at 10% above current
levels and short more into that strength.
A nice open this morning. Markets have a habit of
bottoming in October. It is a short-term bottom. The long term remains dicey as
long as the major averages trade below the 200-day lines. It is the short term
that appears better as we move out of earning season into the 4th quarter. The
perception of the illusion of inflation causes the fed to spike rates to
reasonable levels given the current pace of the economy. The economy in this
country is in good shape. It is a credit card based economy and that will
continue as it moves forward and those that know how to play that game will
survive in it. The stock market is a dicey place to be as we move into 2006. It
has another good rally in it. Perhaps the rally to come is less then average? We
know it will rise in the middle of November into the Thanksgiving season. That
is when I return to home. The market always goes up, when I am home. I will
celebrate my very special 55th year of life in the place where it all began.
Williamsburg, my ole hometown. At PL’s dining on the greatest sustenance the
universe could possibly serve up coming on the heals of a heavy does of
research, and there is nothing quite like it. And it will take shape and place
with a few of my closest friends. The room is booked.
Jack S. Rothstein
Rothstein Investment Advisory Services, Inc.
3600 Chain Bridge Road, Suite 200
Fairfax VA 22030
Phone 888-343-4825 — Fax 703-385-7232
www.jrmoney.com —
www.wealthcast.com
Jack Rothstein is the President of Rothstein Investment
Advisory Services, Inc. and is a 20-year veteran stock trader and a money
manager.
Mr. Rothstein also writes Wealthcast, a monthly newsletter about the technical
behavior of the markets. He has been quoted on Bloomberg, CNNFn, the Dick Davis
Digest and the Dow Jones Newswire. Since 1993, Mr. Rothstein also hosted
WealthCast, a radio show in the Washington DC area covering the stock market.