Thursday, December 3, 2009

12/3 Watchlist

Some new stocks to look at from among those trading 5 million shares or more at this point in the market day:

(pps bull signals)

HGSI since July has had the pattern of moving sideways until earnings, when it gaps up. No earnings are pending, so I think it's a trade only for a calendar spread at strike 28.

RIMM has been trading in a downward pattern since a large gap down in early October. I would reject the pps signal as contrary to the trend.

HIG has been trading sideways since early October, a pause in an upward trend that began in March. Shares are trading at 24.60 with upside resistance at just below 30 and support at about 23. An attractive possibility.

(pps bear signals)

USB has paused in an upward trend since March. I would reject the trade as contrarian.

ARO gapped down on earnings today and is below resistance. I would expect a pause at this point and perhaps an attempt to fill in the gap, so I wouldn't enter this trade now. It does have a lot of room on the downside, however.

ANF shows a sharp downward move to below the 20-day simple moving average in  the midst of an upward trend. This is in line with its pattern over the past year of stair-stepping up. Possibly a good bull trade at the next pps signal.

SBUX has been essentially flat since mid-August. The Bollinger bands are narrowing, suggesting a change.. My best guess is that the change would be  to resume the uptrend that has held since March.

My earlier watchlist stocks:

(pps bull signals)

IWM down today, trading at 59.68. Upside resistance is at 60.75, so there's not a lot of potential there.

MSFT is trading at 30, about at resistance. It is still unconfirmed by the mfi, which is pointing down.

ORCL has moved up to resistance, exhausting its potential on this leg.

(pps bear signals)

CHK is at 23.20, with resistance at about 22.80 and an upward trending mfi. No joy.

(former problem child)

GLD remains about where it was yesterday, when I closed.


KO is dropping back toward profitability in my iron triangle, which spans from 57.50 to 52.50.

UNG stands right below the profitability point in its covered call (a short call option plus long shares).

Trading decisions after 3:30 p.m. EST (12:30 p.m. PST).

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