Archive for May, 2009
Big Squeeze Coming On JP Morgan Chase?
JP Morgan Chase (JPM) may be setting up for a major short squeeze. The stock has carved out a bearish descending triangle in the last three weeks, with the falling highs trendline sitting right around 36.50.
The stock is trading above that level this morning, putting pressure on the logical stops placed by short sellers. This [...]
Metallica
Industrial metals look great this morning, with a few big names, like US Steel (X), trading near their rally highs. I like smaller plays here, including Teck Resources (TCK), which gives exposure to industrial and precious metals at the same time. The stock just broke out above a 6-week cup and handle pattern, as well [...]
First Solar: Under The Gun
First Solar (FSLR) is getting put to the test this morning, after a FBR Capital downgrade and bearish Barron’s column. The stock gapped above a 6-month basing pattern on heavy volume in April and jumped above the 200-day EMA. The rally stalled at “round number” 200 on May 7th, pulled back and tested the level [...]
A Little Elliott Goes A Long Way
This morning’s gap down looks like a 3rd wave continuation gap off Wednesday’s morning high. This structure predicts the halfway point of the selloff, and the embedded 3rd wave.
In turn, this suggests a decline into last Friday’s low, followed by a 4th wave bounce that fails and breaks that low in a 5th wave selloff. [...]
All Eyes Glued To The Nasdaq-100
The eyes of futures traders are glued on the 2-month Nasdaq-100 rising channel that was broken last week. Tuesday’s action lifted above this line-in-the-sand and then turned tail in the last hour selloff. The shooting star through resistance is bearish but there won’t be confirmation until that market trades through the low of Tuesday’s price [...]
E-House China Holdings (EJ)
E-House China Holdings (EJ) is a top China play that’s just reported earnings this morning. It’s currently trading around 14.50. If that price holds at the open, it will trigger a breakout over the rising wedge pattern that’s been in place since early April.
The upside target then becomes the top parallel of the rising wedge [...]
Goldman Sachs (GS) Ready to Top Out
Goldman Sachs (GS) is headed toward stiff resistance at 150, after nearly tripling in price since last October. That price level marks the September breakdown gap under the broken 2008 high, as well as 62% Fibonacci retracement.
A topping pattern and pullback toward 100 is likely over the summer. In the meantime, reward:risk is skewed sharply [...]
Pullback Plays
Tech stocks are a tough trade, after the Nasdaq-100 broke its 2-month rising channel on Wednesday. However, a number of other stocks and sectors have held up reasonably well through the selling pressure.
Here’s a quick list of good-looking pullback plays:
Ameristar Casinos (ASCA)
Boyd Gaming (BYD)
General Cable (BGC)
Oceaneering Intl (OII)
Bill Barrett Corp (BBG)
Now Or Never For The Nasdaq-100
The Nasdaq-100 is opening outside the rising channel that’s been in place since March. It’s been testing this support level for the last four sessions. It’s really the end of the line for the index, which needs to reverse right here, or risk a continued decline that exposes the 50-day EMA at 1313 on the [...]
Robert Half International (RHI)
Robert Half International (RHI) is an interesting play in the stabilizing employment sector. It’s a good alternative to Manpower (MAN), which is overbought after rising 40% in the last three weeks.
RHI has rallied into the September gap between 24.75 and 25.50. It’s spiked into that resistance twice since April 22nd and has now settled into [...]