Monday, March 7, 2011

Possible trades for Monday -- you should review

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Here are some candidate stocks that have better-than-average GGT specs and have been filtered for Effective Volume as well as favorable active boundaries:


  • JNJ has been meandering the past few days, but overall, has held up well the past few days.  Long-term accumulation is strong; ATR20 is only 1%, and it is slightly less volatile than the SP500.
  • SBUX is nearly 2x more volatile than JNJ and it too has good long term as well as short-term accumulation.  Although not shown in the Large Effective Volume, there were some large down blocks of significant $-volume throughout the day.
  • SYT saw steady accumulation over the past week while prices fell, and the diverging LEV from Small Effective volume is a setup that I like
  • DIOD also has a nice divergence between LEV and SmEV, and Tuesday was the start of this move.  Accumulation has been getting better over the longer term, so perhaps this one is turning the corner.  Volume was 104% above average on Friday.
  • NYT surprised me, but while price tanked Friday LEV skyrocketed all day.  Volume ended the day nearly 70% above average.  This one is very interesting.
  • JNPR generally fails on short term accumulation, but over the longer haul, LEV is steady and strong.  Why I mention this is that while Friday was a wild day in terms of volatility and price, the end of the day saw a skyrocketing LEV, all in the last 15 minutes.  JNPR has a 45 AB rating from Pascal, so it is less than favorable.
  • Give ITW a look.  It too ended the day on a ski-jump of LEV accumulation, AND, it's been under steady accumulation for awhile.
  • AVY traded above average volume and is experiencing the divergent LEV/SmEV pattern over the last few days, which I like.  
  • DSW reports in 7 days or so but LEV is diverging nicely, and there have been some big-block purchases over the past week that are notable.
  • HAS has an amazing short-term LEV pattern and is noteworthy of your time.
  • LFT is another stock with a serious divergent LEV/SmEV pattern, especially when prices dropped last week and LEV continued higher.
The following stocks are either GGT LONG or GGT CASH rated, and have everything going for them except volume.  I find that there are early stocks in this bunch, simply waiting for a blast in volume to push them higher.  
  • FTI has been bumping around and is largely unremarkable, except for the HUGE LEV accumulation on Friday.  We had this in the GGT, LLC account until last week, and I may re-enter.
  • APC has been under good, short-term accumulation as of late, and the long-term is solid.
  • EZPW looks terrible on the long-term, but the last few days have meen quite remarkable.  This looks like a stock that is basing nicely, with new accumulation.
  • I have no idea what caused COV to skyrocket in LEV last Monday late, but LEV has never looked back, and neither has price.  This one is moving out.
  • AGCO saw buying volume at the end of Friday which was amazing, as well as duplicating the action with Thursday's close.
  • SMTC looks very nice in terms of LEV behavior.
  • CAVM, a competitor to SMTC, is also experiencing good LEV as the days roll on.
  • AAPL, over the past two days, is just coming back into the GGT picture.  Volume remains low, but LEV is remarkable enough that it meets my scan.  Give a good look at the end of Friday's LEV action -- this is not the signature of a stock that is expected to drop significantly.
  • GFA is an infrastructure play that is impressive -- the LEV is newly emergent and looks very compelling.
  • MSM has my characteristic divergent LEV/SmEV pattern, with growing accumulation during Tuesday of last week when price was dropping.  Very nice.
  • Russia has been doing better lately, and MTL shows it.   Definitely worthy of your review.
  • MPEL is showing steady accumulation in both time frames, and this could give you some diversification.

If you downloaded the Stock and ETF zip file from the Yahoo! group, you found that the stock dashboard had a number of industries that were at the top:
  1. Utilities - Gas (20 stocks in group)
  2. Energy - Coal (11)
  3. Energy - Oil and Gas International Explo. & Production (12)
  4. Health - HMO (13)
  5. Comm - Fiber Optic (6)
  6. Energy - Oil and Gas Services (26)
  7. Energy - Oil and Gas International Integrated (15)
  8. Apparel - Footware (8)
  9. Machine - Farm (4)
  10. Energy - Oil & Gas Drilling (15)
Me thinks you should be looking within the Energy complex for a play or two, and diversify in the other groups as capital and risk allow.

A listing of the stocks in each group can be found in the "By Industry" file that is included in the zip.

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

Regards,

pgd