Tuesday, November 07, 2006
Potentially profitable Short-Term Trading
Ideas
Long candidates:
Agilent Technologies (NYSE: A, $32.93) -- Agilent is a manufacturer of
scientific measuring instruments. TheI stock was initially highlighted on the
October 16th. The shares then broke through $35, but have since retreated with
the technology sector. There should now be support near $33, where the stock
completed a recent base. Target is $39.49, which implies a test of the April
$39.54 high. Stop loss exit would be at $29.89.
Short Candidates:
Emulex (NYSE: ELX, $19.26) -- Emulex is a maker of computer storage
networking products. The stocks was initially flagged on October 30th. ELX has
broken an Intermediate trendline, and daily ADX and MACD have both given sell
signals. Target is $16.05, where there is lateral support dating to late
August. Cover the short at $20.18, a penny above the late-October high.
Trading Education
Tutorial
Measured and Exhaustion Gaps
Identifiable
Patterns After Confirmation Move
We have previously mentioned the three types of gaps that are of relevance to
investors - the breakaway gap, the measured (or continuation) gap, and the
exhaustion gap. We previously discussed the breakaway gap, but it is important
to discuss the measured gap and exhaustion gap at the same time. Why? Because
it is difficult to tell one from the other until after the fact.
Read More...
NASDAQ Chart of the Day
FRNT
has formed a tightly-wound triangle consolidation at the highs of the overall
advance. Watch for a breakout from this range for key movement: 8.50 up, and
7.80 down.
Daily Trading Signals
NYSE Chart of the Day
AVP
has reversed from major resistance at 33.25, which has held firmly since May.
Look for a steady decline from this level, unless resistance is crossed and
held.
Daily Trading Signals
Daily Market Commentary
Updated Monday, 11/6 for Tuesday's market.
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Key DOW Levels for 11/7
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UP
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Above 12,150
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DN
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Below 12,000
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Big Rally...
- Dow reverses from major trend line, rallies steadily to the
Close. The major lower trend line, seen in the Daily and 60 Minute Charts
continues to be a major force in the highly bullish uptrend, which will remain
the 'norm' as long as it remains in tact.
- The NASDAQ and S&P each rallied solidly today, but looked to have tapered
off to the Close. Look for each to hold gains tomorrow, as long as intraday
support levels remain in tact.
Summary
The Dow closed the day with a solid gain after rallying fiercely at the Open
and maintaining the gains to the Close. The index will likely look to hold
gains tomorrow, as a potential continuation pattern forms. Look for continued
overall strength above 12,050, unless this level is violated.
Read More...
