Monday, September 18, 2006
Trading Ideas &
Picks
Weekly
Market Update
From a technical standpoint, we have a new up trend. A normal up
trend after such a strong down trend, like the one we had in the first part of
the year, would only bring us up to the 1590 level. We did stop there, for a
while, as expected, but then broke the resistance. This puts us in strange territory,
the next resistance level is 1677. Basically, that means that the whole down
trend is going to be undone by a new up trend...
Trading Ideas -
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Trading Ideas &
Picks
The QQQQ Report for September 18th -
September 22nd, 2006
QQQQ:
We've mentioned that an interesting inverse head and shoulders pattern had
formed on the chart of the QQQQ. The past week's impressive gains were enough
to send the price back above the neckline and we did indeed see a test of the
200 DMA like we were expecting...
Trading
Picks - Read More
Daily Stock Picks
Bottoming -
Sep 15 for Sep 18:
CKEC CRXX ESST SCKT
(Stocks making a 52
WK low but closing higher than they opened)
Oversold Stocks -
Sep 15 for Sep 18:
BTRX SYNM
(Stocks closing higher than they opened, crossing up through their 25
Stochastic level, and on 150% + greater than average 6 month volume)
Overreaction -
Sep 15 for Sep 18:
PGWC QRCP
(Potential Bullish
Bounce: Stocks making a 52 WK low and moving down 10% or more in one day)
More... Stock Picks Page #1
NASDAQ Chart of the Day
QCOM is winding up with a large triangle range and could be approaching
a breakout very soon. Watch 36.50 down and 39.00 up for a potential breakout move.
Daily Trading Signals
NYSE Chart of the Day
HET is winding up within a clear consolidation at the lows of the latest
overall decline that began in May. The range is being broken to the upside at
64.00, which could finally send this stock higher back toward the 70.00 zone.
Daily Trading Signals
Daily Market Commentary
Updated Friday, 9/15 for Monday's market
|
Key DOW Levels for 9/18
|
|
UP
|
Above 11,650
|
|
DN
|
Below 11,500
|
Pop and Drop
- Dow rallies out of clear triangle, but pulls back from key
11,600 zone. The index fell about 36 points shy of our 11,650 target and
eventually reversed from the day's highs to end the day with a 33 point gain.
- The NASDAQ and S&P each traded off the day's highs and look to be in the
midst of forming bearish head-and-shoulders patterns. Look for a continued
build-out of their respective patterns, a breakout could make for big movement
ahead.
Summary
The Dow closed the day with a modest gain after pulling back from the day's
opening blast higher. The index has been rejected by the 11,600 level and could
look to regroup before another breakout attempt is seen. Watch for a light
retracement early next week, unless 11,500 is broken. A violation of this level
could make for much bigger selling.
Read More...
Trading Education
Tutorial
Trading Ranges
Big
Moves Occur Outside of the Range
A trading range is basically a horizontal channel in which a
security moves from the high and low of the channel for an extended amount of
time. Obviously, the upper level of the range can be considered resistance and
the lower level represents support. Trading within a range is possible, but
it's the breakout from the range that provides the best opportunities.
Read
More...
