Interesting Charts for Technical Trades

[Dinerotrader 10]

CENX

 

Reversal or breakout. Not sure which way to go here. I'm leaning towards breakout.

 

[thalestrader 14]

I'll try to get some more large cap stocks in the mix. Feel free to throw some in also.

 

In my book, if its less than $10, its a penny stock. I just figured I do a scroll through penny land to find something to share here in your thread.

 

Market cap has nothing to do with it, either. For example, Citigroup has so many shares outstanding, I think they were still a large cap at 98 cents/share. A large cap penny stock, that is.

 

Here is a source I have used week after week for many years now to find candiates for my watch list.

 

Best Wishes,

 

Thales

IBD 100 as of 12-11-2009.xls

[sep34 10]

KTII

 

Here is where I would like a breakout to play. We'll see what we get.

 

 

Hi Dinerotrader,

 

Because I use seperate computer for internet browsing and trading or trading platform, I didnt look at more of the data i.e left edge and sometimes that fact can change things....that said.

 

now thats a good looking clear chart..

Thats a good looking chart... and if it can succesfully breakout it has a lot of room to potentialy run, making it a good trade from a business stand point.

 

Since Im not a breakout trader and its because Im not used to buying rallies and nothing more.

I would have gotten positioned on and near the trendline touch you have on your chart.

 

last of all, thales brings up an old but vital consideration, no matter how great a stock looks the index futures will influence its movement.

 

When I used to daytrade stocks, a long time ago, I had one eye on the stock and one eye on its index. one of the main reasons why I decided to daytrade futures exclusively.

[Dinerotrader 10]

F

At the top of a well established channel.

 

[Dinerotrader 10]

JOYG

 

I started looking through the IBD list here is one that I might be a little late on for an entry. It just touched short term support and trendline support and might be on its way up with the trend.

 

[Dinerotrader 10]

CBR

Were still in the down trend but we had a good hammer at R couple days ago and some strong upward action today. On the watchlist.

 

[Dinerotrader 10]

MDTH

Nice strong move off support after some consolidating action.

 

[Dinerotrader 10]

SWSI

 

This one is just interesting. Resistence at one level and Support was just a bit above that in the past. That would me me leary of taking any breakout move on this until we cleared the 2nd hurdle.

 

[Dinerotrader 10]

SCSC

Maybe throw some Thales 1-2-3 in here and voila, a nice little reversal. We'll see if it works.

 

[thalestrader 14]

Hi Dinero,

 

I'll join your penny stock parade. I'm not initiating any new longs right now given the current market action, but, if the markets intentions were clearly to continue up, this is what I would be looking for: SRLS has established a nice, orderly uptrend over several months, and it is now puling back after getting to within 34 pennies of its all time high according to the data I have on Telecharts. I like this little pullback to 3.50, so I would be looking to buy if Friday's high is bttered by at least a dime, and my stop loss would be a penny below Friday's low. I'd be watchful at the 4.50 level (all time high $4.54), but my intention would be to hold this for a few bags if it pushed tonew all time highs.

 

Best Wishes,

 

Thales

 

Hi Dinero,

 

I'm still not looking to initiate any new longs at this time, but I still like this action on SRLS. Buy stop is 3.84, as noted a week ago. Buy stop has not yet triggered, but another pullback to 3.50 occurred.

 

Best Wishes,

 

Thales

[Dinerotrader 10]

Hi Dinero,

 

I'm still not looking to initiate any new longs at this time, but I still like this action on SRLS. Buy stop is 3.84, as noted a week ago. Buy stop has not yet triggered, but another pullback to 3.50 occurred.

 

Best Wishes,

 

Thales

 

Please do post a quick note here when you begin to initiate any longs and why.

 

Do you have specific criteria you use to decide if you are willing to enter new long positions or is it just a general feeling after considering all the market factors you observe?

 

What did you think of my H-L-HL here?

[thalestrader 14]

I'm still not looking to initiate any new longs at this time, but I still like this action on SRLS. Buy stop is 3.84, as noted a week ago. Buy stop has not yet triggered, but another pullback to 3.50 occurred.

 

SRLS did print at 3.84, and while I doubt I would have been filled based on that lone print, for the sake of this paper trade, we will assume that I own SRLS at 3.84. The fact that 3.84 was the high tick since posting this stock, we are safe in assuming that I would now own it at no more than 3.84/share.

 

I'll track this here as though I own it. Stop loss is as noted - $3.84.

 

Best Wishes,

 

Thales

[thalestrader 14]

Here is an IBD 100 stock ... AIXG

 

Best Wishes,

 

Thales

[thalestrader 14]

SRLS paper trade as of the end of week. Long 3.84, close 3.80, SL 3.46

 

Best Wishes,

 

Thales

[thalestrader 14]

AIXG paper trade as of end of week, long at 34.13 (theoretical) stop loss 32.46

 

Best Wishes,

 

Thales

[Dinerotrader 10]

CKH

Here is a confusing one to me which I wouldn't trade because I am torn between a long and short position. I see an obvious head and shoulder pattern but I also see a pretty strong S/R level that price just moved up from.

 

I'll be back posting more charts on Monday and posting some follow ups on charts I posted that I took real trades on.

 

[natedredd10 10]

SWSI

 

This one is just interesting. Resistence at one level and Support was just a bit above that in the past. That would me me leary of taking any breakout move on this until we cleared the 2nd hurdle.

 

 

It would be easier if you just numbered the charts in order to make it easy to respond to multiple post.

Way too late to play the breakout IMO, if anything I would be looking to fade exhaustion.

[Dinerotrader 10]

It would be easier if you just numbered the charts in order to make it easy to respond to multiple post.

Way too late to play the breakout IMO, if anything I would be looking to fade exhaustion.

 

I was thinking that the stock symbol would work for referencing on responses or just quoting the post. If I used numbers, wouldn't everyone just have to start using a legend to look up what we are talking about? Quoting the post works best so everyone can see the original chart that was posted. I'll try to put together a summary post on Monday for all the charts I have posted. Thanks.

[thalestrader 14]

I was thinking that the stock symbol would work for referencing on responses or just quoting the post. If I used numbers, wouldn't everyone just have to start using a legend to look up what we are talking about? Quoting the post works best so everyone can see the original chart that was posted. I'll try to put together a summary post on Monday for all the charts I have posted. Thanks.

 

 

 

 

How does it work if we insert the stock symbol into the "Title" of each post? This way, scrolling through, we can easily identify related posts. If the post is of a general nature, then we can leave the thread title in the title line.

 

Just a suggestion - its your thread, of course. I'm just trying to help.

 

Best Wishes,

 

Thales

 

AIXG paper trade as of end of week, long at 34.13 (theoretical) stop loss 32.46

 

Best Wishes,

 

Thales

[Dinerotrader 10]

So far I am really enjoying this thread. It is amazing how putting these ideas in a thread is so much more meaningful than just making mental notes while I scan through stocks. I’ve also been making some real money on a few of those that I took trades on. So far I have traded RAIL, OCNF, MBI, and ARP. I sold RAIL for an 8% gain, I am up 28% on MBI, and I’m up 17% on ARP (as of 12/27/09).

 

What stocks to scan through?

I try to look at most of these picks from a mostly technical view but I do give some fundamental bias for some. The question for me right now is whether I should just trade any stock with a good chart or should I only look for technical setups on stocks with strong fundamentals. Thales noted that he primarily considers IBD 100 for his picks so he can incorporate reasonable fundamentals into his selections.

I do like a small cap stock subscription I use from Motley Fool. I throw their picks in the mix of stocks I look through and only trade the ones that have a good technical entry point.

Does anyone else have what they believe is a good way to find a group of strong fundamental stocks that can then be sorted through technically?

 

I think I will try to start posting where my stop loss would be in red and my entry level in green

 

Summary

To summarize the thread thus far, here are all the charts I have posted and the couple Thales posted.

 

My charts

• PMI
  
• GKK
  
• EPAX
  
• RAIL - Traded for an 8% gain.
  
• DNN
  
• NCS
  
• AGO
  
• GVA
  
• OCNF - Traded and stopped out for 5% loss
  
• MBI - Still own
  
• S
  
• TLAB
  
• ARP - Still own
  
• MCO
  
• GME
  
• KTII
  
• CENX
  
• F
  
• JOYG
  
• CBR
  
• MDTH
  
• SWSI
  
• SCSC
  
• CKH
  

 

Thales

• AIXG
  
• SRLS
  

 

I am really gearing up for a lot more analysis and research in 2010 to fine tune my trading methods. Let's make some money!

[sep34 10]

So far I am really enjoying this thread. I sold RAIL for an 8% gain, I am up 28% on MBI, and I’m up 17% on ARP (as of 12/27/09).

 

 

Does anyone else have what they believe is a good way to find a group of strong fundamental stocks that can then be sorted through technically?

 

 

[!

 

Glad to hear that you are Making some profits that is allways fun...I just wanted to touch on IBD with a little more detail.

 

Combining TA and some solid fundamentals can be powerful combination. I will admit that I'm not a high frequincy or active stock trader.

 

In the past What I use to do was very simple, IBD's market research In my observation is excelent, they are the only service that I have ever found to provide some solid value.

All the stock I traded were in IBD recommnedation list.... the next step is to watch the main market indices(Dow nasdaq s&p) to make sure you are not intiating any trades durring an exhausition point etc..

and for timing your stocks use what ever TA you are confident in.

For me, back several years ago, This is what I was doing and mostly because I didnt want to spend to much time on stock and my main focus has allways been futures.

I Took all the oil related stocks from the IBD list and placed them inside a Watch-list. Then I opened a chart for each stock and made my analysis and any notations on the chart and saved the chart. Every night I would look at each chart to see if a trade was near triggering a potential trade--if so I would either place an order right then or make it a priority to watch that stock in the morning to get order placed.

This worked out really well for me and I was using some simple TA like buying trendline touch or s/r level nothing complicated.

 

IBD also has a web based scanner which you can use to scan for the stocks that you prefer using their indicators. that is another tool that used and liked very much.

 

In short ,personaly,There are only two types of stocks I would ever trade/invest.

1st. stocks that I understand, i.e. their product makes sense to me as aconsumer and I have strong feeling that its a good product and its a new inovative product just hitting the market. This allows for the stck to have tremendous growth.

e.g. Im a big movie fan and when Netflix first started to offer movies being dilevered via US mail, with no late fees possible (context; back then we didnt have naything like On-Demand, only options were to go to the Movie theater or drive and wait in line at the local video rental store and if your late then you have ot pay late fees )- I instantly new this was a company that was going to take off. Netflix is just one example of many.

 

2nd. The stock has to be in the IBD list, it just makes trading easier.

 

I also tend to stay away from stocks that are too cheap <$5. however, there are allways exceptions, for example buying citigroup around $1 right after the Saudi prince came on CNBC saying that he has increased his holdings in citi and purchsed another several billion dollars of citigroup, Knowing the ties betweent eh Saudi's and the US gov. that was the best clue one will get that the US gov. will net let citigroup go under and buying at around $1 became very attractive investment.

Edited December 28, 2009 by sep34

[sep34 10]

Hopefuly TLAB will reverse at R and enter the buy zone on my chart....if so then a potential buying opportunity may occur, if not then so be it.

I just cant see TLAB moveing too far from the location it stopped and reversed up. If we are to get a meaningful move up to test the 2008 high I believe we have to break one more time before we have strong rally.

[Dinerotrader 10]

BGH

 

I'd hate to short this without some indication the momentum is ending. Resistance level looks pretty strong to me.

 

[sep34 10]

Dine, do you ever look at the sector charts of the stock your looking at ??

If yes could you post a chart of BGH sector chart.

By the way if and when I hear myself mumbling something like I dont want to short here because I cant tell if the momentum has run out yet, I will usually listen to that because its a red flag. simply my intution/subconscious is telling me to becareful. Normaly I will let that trade pass until Im more clear about the trade.

Looking at other instruments that are related to the stock im looking to trade can sometimes give me more clarity....this is why I asked if you ever look at the sector chart as a whole to get a feel for all the stock in that sector.

[Dinerotrader 10]

RUTH

 

I posted this one because price seems to have respected a couple levels with tight PA around each level. One to watch.