Friday, March 25, 2011

No Solid Confirmation of a Bull Leg; Being Selective

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I finally landed from the west coast about 1 a.m. Friday morning so this will be abbreviated, in that I've not been able to review my watchlists in detail.

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Summary

  • The intermediate-termed timing model that I use (Elder Force Index) is mixed and has NOT confirmed this move upward.  I'm looking for two consecutive days of both methods closing in positive territory; we're not there yet.
  • GGT closed at an all-time high with the close of markets yesterday.
The key here is to buy "test" positions in strength; some of my ideas are below.

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GGT + EV Stocks

Here is my watchlist of stocks that I'm considering

  • AEM - good 40d and 8d support, just cleared 200d, volume is increasing
  • AZO - newly showing 40d and 8d accumulation, very close to 52 week high, new breakout of Darvas box so watch it to take out the 52w high
  • EZPW - riskier trade, but is breaking out and is starting to show accumulation.  Has lacked institutional support prior to this breakout; new Darvas box breakout
  • FMC - showing increasing support and looks that it will take out 52w today if it continues higher
  • GWR - showing solid momentum to the upside
  • NFX - failed a close above the 52w this week but is in a definite uptrend and has accumulation
  • PCLN - looking very strong, about to issue a buy signal in terms of correlated volume and price action.
  • CTSH - also looking strong on multiple fronts
  • EFX - just took out 52w high and has good institutional support
  • CLH - not attracting massive short-term accumulation, but is marching higher on good volume
  • THS - same as CLH, and keeps setting new 52w highs each day
  • UPL - showing new strength, but a volatile stock
  • YUM - showing good accumulation on the 40d and increasing volume in a range
  • WAT- solid accumulation but volume appears to be dropping slightly
  • SUN - just cleared a new box and set a 52w high and is attractive, but beware of doji on Thursday
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Trading Plan for Friday

I'm net bearish in my positions, which are down about 2%. I intend to hold onto these and add selected stocks if they show strength today.

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Remember, you are responsible for your own trading decisions, and I am not.  Please do your diligence and please take ownership for your actions.

I'll provide a detailed review over the weekend.

Regards,

pgd