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Chart: COGN
Anybody trading AAPL? If you are, take a look at the chart of COGN (Cognos, Inc.). These two stocks show some uncanny similarities: vertical moves from November to December, basing and a pullback from highs, a recent emergence and breakout above those old highs, and positive MACD. They even share…
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Links of the Week
{New viewers, thanks for visiting, and please visit the rest of my site} Trading Links: A new way to use RSI. Thirty stocks for traders to watch. Handicapping the odds of hitting pivot points. In trading, sometimes you need to change your state of consciousness. Find stocks that correlate with…
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Chart: AKAM
AKAM (Alkamai Technologies, Inc.) has been on my bearish list of late, but things have changed since the stock followed through today off a bullish englulfing candle pattern. Also note that the MACD looks ready to turn positive. Things will get interesting if the stock can clear recent highs on…
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Chart: AAPL
I know we’ve all had AAPL overload for the past few days, but this stock cannot be ignored. After undergoing a brutal shakeout, today the stock obliterated it’s recent all time highs. What’s not to like? The stock gapped up over resistance, closed at the day’s highs on nice volume…
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Today’s Trade: HANS
I bought 500 shares of HANS at $36.04. I had HANS marked for entry on a breakout over $36 resistance, and it easily blew past that level this morning. I sold have of my position at $37.65 for a $412.50 gain (4.5%). My target for the remaining 250 shares is…
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OT: Mark McGwire and the Travesty that is the Hall of Fame
Today, the Baseball Writers Association of America committed what I would call a baseball sin, by denying legendary slugger Mark McGwire induction into the Baseball Hall of Fame. I could type until I was blue in the fingers, providing stat after stat showing that McGwire deserves to be in the…
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Chart: FCX
Metal related stocks have provided a nice bounce for those of us who missed out on the recent decline. A prime example is FCX (Freeport McMoran Copper and Gold). The stock broke down below the double top support line on heavy volume, and is now pulling back up with small…
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Today’s Trade: XLE
I’ve decided to go for a low risk “catch a falling knife” play. Over the past three years, XLE, an energy ETF, has had some nasty selloffs that tend seem to reverse at the 200 day MA and 30 RSI. The stock has dipped just below this level late last…
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Short Term Traders Should Keep an Eye on the Bigger Picture
When I post charts, I usually only show the past three to six months. For my style of trading, this time frame usually offers the best predictive value. However, I always take into account the longer term chart. I am looking for levels of support, resistance and chart patterns that…
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Today’s Trade: GROW
I covered the final 200 share position of GROW at $55.06 (entry at $71.95) for a $3378 gain (+24%). The total gain on the 400 share position was $4804 (+17%), making it one of the best short term trades I have ever had. The trade could have been better, as…
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General Dynamics Revisited
GD (General Dynamics Corp.) has been a good “buying the extremes” play over the past few months. If you had bought the stock in late October, when the stock hit an extreme stochastic reading, and sold once the stock was extremely overbought, the trade would have been good for a…
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Today’s Trades: QID and GROW
As I outlined last night, I bought 500 more shares of QID at $53.35 this morning. I started to get queezy as the stock broke below the 50 day MA, but I stuck with the trade as I am mindful that there might be some weak New Year euphoria, so…
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Chart: QID
I already have a 500 share position in QID, which is an ETF that double shorts the Q’s (I love the increased volatility!). On Friday I was a little nervous, as the stock looked like it would breakdown below the 50 day moving average. Luckily it reversed towards the end…
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New Year Resolutions
As many of you, I always start off the new year with a few resolutions. I usually keep them to myself, but as Steve Pavlina points out, it is best to make your resolutions public. This way, you have put it on record and hold yourself accountable to your readers.…
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Chart: GD, and Martin Luther King’s "I have a dream" speech
General Dynamics (GD) has a promising looking chart with price action near one year highs. During January, I will be watching to see how it handles the $78 level. If it can breakout on high volume and we see an increase in RSI, the stock could be good for a…
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Today’s Trade: GROW
I went short 400 shares GROW at $71.95. It’s always risky shorting high flyers like GROW, so I am using a tight stop on this trade. The setup was one that I like to use to spot weakness in stocks that have made parabolic moves. When a stock makes a…
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Trade and Chart: QID
When I’m in the mood to short the Nasdaq, instead of shorting the Q’s, I like to go long QID. QID is an ETF that double shorts the index. It’s a great way to increase your exposure to volatility when playing a boring index. Today I bought 500 shares at…
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Books, Indicators and current charts: answering e-mails
Why haven’t you posted any charts or watch lists lately? Due to factors such as low volume, this time of year can make for tricky trading, and I’ve noticed that charts don’t hold up well. I’m still watching the usual suspects, but I don’t feel there are many really strong…
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Self Awareness and Trading
After writing Market Wizards (where he interviewed many top traders), Jack Schwager decided that one of the most important factors to trading success is knowing thyself and finding a trading style that matches the trader. Over the years, I’ve learned the hard way that this is sage advice. Early on…
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The Shins: Phantom Limb
I first took notice of The Shins after watching Garden State. Here’s yet another winner:
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Tighten the purse strings and advice from Rocky Balboa
“Don’t focus on making money; focus on protecting what you have. “ –Paul Tudor Jones– The market is at a crossroads right now, with all of the major indices at key levels heading into the new year. I will be following Mr. Jones advice and playing it very cautiously. While…