The Equities Room Blog

Early Bird Report 2-29-12

Mild gap higher today in the SPY after European markets held up and domestic GDP numbers were released this morning.  Yesterday’s action was very familiar, as buyers showed up early and then again late in the day when it looked like we might slide into the red.  The strong 2.5 month bullish channel is still intact, but its started to get a little bit frustrating for the bulls, as premium setups and catalysts for another leg higher seem to be difficult to find.

News/Earnings Stocks

Gapping Up– VRSK  APEI  PSS    COST  WDC  QUAD  CEP  AGO  CERS

Gapping Down —  FSLR  PANL  SODA  DWA  KOG   VOCS  STEC  SPRD  TTEC  GNTX  CEDC  MWE  SPLS

No indication — JOY  CRI  NOG  ITT  LORL  NTLS  CZR  AMRC  AH  LIZ  SGMS

Watchlist: This is a breakdown of stocks w/ certain technical characteristics in light of  yesterday’s action, NOT a recommendation to Buy or Sell. Always consult your own registered broker/advisor before initiating any positions.

Under $10  long momentum  looks with strong closes/actionable charts: BALT  TAOM  LEDS  OSIR  TSTC   CRAY  DANG  RENN

Over $10 long  looks w/ strong closes/actionable charts coming out of a range: CRK  JEF  SFLY  TMO  BIG  LVS  MPEL  GOOG  ARO  CHD

Weak close/weak chart/downside range break: APKT  KFY  VNO  VHC  WOR  IOC  DVN  MAC  WCC  BMC

GoPauseGo Candidates: OC  PMFG  CXW // ACOM (down)

Current Positions in our Ditto Trade Mirrored Swing Account: (For a review of all our swing trades for the current year, check the “Swing Trade Updates” category within our blog).

DDD long from 25.00

3  ideas for today’s trading day:

These are ideas…. NOT recommendations.    The idea behind this section of the report is to illustrate my thought process when looking at potential swing and day trades.  Often times I trade these setups, many times I don’t…dictated by market tone for that day.  Complement these ideas with your ownresearch before making any trading decisions.   Always consult your own registered broker/advisor before initiating any positions.

1.)  Traditional long:  GOOG

This stock isn’t for everyone, and its not really my favorite stock to trade, but its hard to argue with that daily chart.  Basically consolidated sideways under its 50d MA for the entire month of February before pushing past and closing above it yesterday.   There is not much resistance on the daily chart above yesterday’s highs, and a break of that 620 area looks like a trigger if you want to be aggressive.  If you’d rather wait out the open, or watch for a pullback, I’d make sure it can hold any test of the 614 area where it bounced from yesterday afternoon just before the close.  If it trades below there, I’d probably shelve the long idea for today.

2.) Traditional short:  BMC

Trying to pick shorts these days is tricky business.  I am looking at BMC only becuase it traded weakly into the close and is sitting right on its 20d MA.  Frankly, traders could use this same logic as a reason to get long, as many stocks have bounced after pulling back to their 20d.  I am well aware of this, and won’t be part of the name if it clears the 38.70 area from where it started to slide yesterday afternoon.  The idea here is that after a strong 2012 run from 31.60 area, that a loss of the 20d may see some recent longs take profit as there is not a whole lot of support underneath.

3.) Small cap or sub $10 momentum long:  PVA

Not seeing much in the small cap/speculative money space that really excites me.    PVA is a name that stuck out to me yesterday, as traded well on heavy volume as many other peers sold off.  The stock has seen a sharp sell off from the 6.25 area, back below its 50d, getting as low as 4.75 before stabilizing.  The volume yesterday was very strong, and I’ll be watching it today to see if it can climb back at least to the midpoint of its recent slide around 5.50 or so.  I will ignore the trade if it trades below 4.90, as I don’t really want to be part of it unless it builds on the volume and momentum from yesterday.

The creation of this morning’s Early Bird Report was helped by the music of  Mike Doughty

The Early Bird Report

Early Bird Report 2-28-12

Initially saw the SPY gapping up this morning before Durable Good orders and Case Schiller numbers dumped us back to unchanged.  Yesterday was another victory for bulls as our gap lower was quickly bought yet again.   Its hard to feel any different about this market right now…and I feel like a broken record.  We are still well entrenched in our rising bull trend from mid Dec, and every dip is getting bought.  Its worth pointing out that recently after strong intraday moves like we saw yesterday, liquidity tends to dry up and the market becomes vulnerable to sell programs.  Ideally, I’ll be trading lightly (and with premium setups) today to see where we go from this unchanged open…I tend to think that these days wind up telling us a lot about where we’re headed in the short term.

News/Earnings Stocks

Gapping Up– ZAGG  HGSI SINA  PCLN  JAZZ  ERT  VSI  AZO  BDSI  DPZ  VPHM  MENT  JASO  RDC

Gapping Down —  PEIX  ENOC  TC  SWN  CECO  SYKE  GTLS  MGLN  OKS  APOL  ECL  WNR  TECD  THC

No indication —  UHS  APL  KAR  MR  URS  MRX  KAMN  CRAY  SLXP  IL   SAFM  CRZO  CTCM  IPXL  DSX  ABVT    SAH  IPCC

Watchlist: This is a breakdown of stocks w/ certain technical characteristics in light of  yesterday’s action, NOT a recommendation to Buy or Sell. Always consult your own registered broker/advisor before initiating any positions.

Under $10  long momentum  looks with strong closes/actionable charts: FRO  TQNT  NOAH  LEI  FUEL ATPG  TSL

Over $10 long  looks w/ strong closes/actionable charts coming out of a range: NTRS  TZOO  HUN  SYNA  WFM  HLS

Weak close/weak chart: ATVI  CECO  SPRD  OSK  VHC  APOL  ACOM  JDAS  ITMN

Trading up to MA resistance:

20d: MKC  NSC

50d: BBBY GOOG  MKC  CSX  KR  GWR

200d: DTV  WU

Trading down to MA support:

200d: WIT CAKE

50d: MMC  MRVL  NEM  TDS

2od: LTM  ESI  HFC  ROK  DRI  TAP

GoPauseGo Candidates: HLS  BID  FISV  GD

Current Positions in our Ditto Trade Mirrored Swing Account: (For a review of all our swing trades for the current year, check the “Swing Trade Updates” category within our blog).

DDD long from 25.00

3  ideas for today’s trading day:

These are ideas…. NOT recommendations.    The idea behind this section of the report is to illustrate my thought process when looking at potential swing and day trades.  Often times I trade these setups, many times I don’t…dictated by market tone for that day.  Complement these ideas with your ownresearch before making any trading decisions.   Always consult your own registered broker/advisor before initiating any positions.

1.)  Traditional long:  TAP

Has been pulling back for about 5 sessions now, and is now approaching some important 20 and 50d Moving Averages.  Wound up trading sideways yesterday, which is mildly bearish since the market was so strong off lows yesterday.  However, the thin range, doji type candle put in yesterday will help us easily identify some entries and stops.  If yesterday was the reversal day, we can look  buy above its 20d at 43.84, and possible again through yesterday’s 44.08 high for a move back to the middle of its recent pullback range which would be around 45. If the market opens weakly, we can also wait to see if the stock pushes down to test its 50d MA at 43.62 for a more conservative entry.  If this stock is to reverse today, it would certainly be helped by some continued market momentum, so we’ll be watching for that as well.

2.) Traditional short:  ACOM

Bear flag break to the downside in this name yesterday…the stock had been consolidating after a big post-earnings flush (after lowering growth estimates) and finally cracked yesterday.  Actually, it tried to fill the gap back up with the rest of the market, but wound up giving it all back into the close as it sank to lows.  Not sure how this will open up today…triggers to the short side would either be on a break through yesterday’s lows around 23.60, or waiting for any opening range drive higher into the 24 handle.  I would ignore the name/stop out if it finds a way to climb back over 24.60, which was Friday’s close area and yesterday’s midday top.  Downside target would be the 22.50 pivot low after earnings.

3.) Small cap or sub $10 momentum long:  TSL

Seeing a bit of a bid in solar stocks today, presumably after some positive guidance from peer JASO.  The sector has been all over the place this first couple of months this year.  A couple of really strong short squeezes were followed by heavy trading after European subsidies were getting cut.  TSL snuck below its 50d recently, but had a nice reversal/recovery day yesterday after seeing its price fall from early Feb. highs of 12.19 down to 7.40 on the open yesterday.  The play today is that we’ll see some mean reversion after that hammer reversal candle.  The trick, however, is that we are already seeing the stock trading higher in the premarket…at 8.15 or so after closing just below 8. I thnk the way I’ll try and play it is to look for an opening drive lower to find a entry where I’m not chasing to get in.  It may not happen if they see strength out of the gate, but if that is the case, I’ll let the idea go and move somewhere else.  My line in the sand will be around the 7.80 level.  If it trades below there, its just too close to yesterday’s lows and a failed reversal becomes too much of a possibility.

The creation of this morning’s Early Bird Report was helped by the music of  Soulhat

The Early Bird Report

Early Bird Report 2-27-12

We are seeing a decent sized gap lower here in the SPY after the weekend, after we limped into the close on Friday immediately after getting through some significant resistance.  Pretty standard stuff on why we’re lower…high oil/energy prices, Greece questions and soft Asian and European markets.     BULLS will point to the fact that gaps lower have provided excellent opportunities during this 2.5 month rally, with almost all dips getting bought up, and bought up quickly.  They will also make the case that even with the gap lower, we are still technically within our rising channel, with the trend still intact. BEARS will point out that the failure to close above the 137.18 resistance area represents a short term shift, and that we are due for a correction.  They will point out that the rising channel has a supporting TrendLine right about here at 136.20, and that if we lose that support we could be in for a real correction, rather than the one/two day stuff we’ve seen since December.  Personally, from a day trade standpoint,  I think that I’ll still side with the bulls until further notice and use the gap lower to be on the lookout for any stocks with strong, actionable charts that make a red/green move early.  If, after the opening range shakes out, we are seeing a firm offer in the market, I may have to change my tune.

News/Earnings Stocks

Gapping Up–  RIG  LNG  CQP  LOW  PCS  BPAX

Gapping Down —  UNS  BRCM  MCP  BRK.B  AWI  DRQ  DNDN

No indication —  TGE  ANV  TREX  KWK  TRS

Watchlist: This is a breakdown of stocks w/ certain technical characteristics in light of  yesterday’s action, NOT a recommendation to Buy or Sell. Always consult your own registered broker/advisor before initiating any positions.

Under $10  long momentum  looks with strong closes/actionable charts: GMXR  DVR  LEI  TAT  HOTT  SD  PEIX  SAAS  RTK  ROYL  CXPO  DBLE

Over $10 long  looks w/ strong closes/actionable charts coming out of a range: LOPE  BAX  MMM  MNST  COV  MMR  PAY TUP  HLS  BID  PDC  AMED

Weak close/weak chart: FDS  THO  SPRD  MBI  DE

Trading up to MA resistance:

20d: CTCM  PCL  NTGR  HMSY LLY  ARW  MON

50d: GOOG  CHKM  PRGO  VRX

200d: WU KR

Trading down to MA support:

200d: MS  CLX  GES  MLHR

50d: SINA  DE EAT  MHK

2od: JCI  POT  TWI  INTU  MDC  TIF

GoPauseGo Candidates: FXEN  IBM  ITT  LVLT  ICE // AEP

50–>200 day MA cross (bullish): COF  PAY  MAKO  WRI  NKTR  RBC  AEIS  CTSH  MCK  OI  WTW  LH  MMM

Bearish:  TWIN

Current Positions in our Ditto Trade Mirrored Swing Account: (For a review of all our swing trades for the current year, check the “Swing Trade Updates” category within our blog).

No Current Positions

3  ideas for today’s trading day:

These are ideas…. NOT recommendations.    The idea behind this section of the report is to illustrate my thought process when looking at potential swing and day trades.  Often times I trade these setups, many times I don’t…dictated by market tone for that day.  Complement these ideas with your ownresearch before making any trading decisions.   Always consult your own registered broker/advisor before initiating any positions.

1.)  Traditional long: IBM

Traditional GoPauseGo setup here after Thursday clear range break, followed by a tight range inside day Friday.  The idea here is that it continues its breakout move today on a move past Thursday’s opening range high of 198.56.   Take a look at the GoPauseGo move in MA on Wed/Thurs/Fri and you’ll see what I am looking for in this trade.  IBM, while not a peer of MA, does have some similarities in that it is a widely held name that has traded very well over the past 6 months, and is a stock that institutional money & managers will want to own.   I see that we are gapping lower here in the pre-market…this has been a good thing lately, as any gaps lower have quickly been bought up in this strong rally.  That same type of action will help in a name like IBM, as any move into positive territory will be picked up by astute traders.   We’ll have to watch out for a gap n go move to the downside, though.  Just because we haven’t seen one lately, doesn’t mean it can’t happen.  196.61 is an area to watch on the downside as it was Friday’s intraday low.  Below there it could be loose until the 195 breakout area gets tested.  I will interested in  buying  any red/green move, and will get interested if it drops down to test 195 on the open.  200 would be my upside target in the short term.

2.) Traditional short:  FDS

Eyeing this name as a potential short as its daily chart has been unimpressive during this latest market rally.  I am not suggesting this as a swing short, but only as a short during a broad market sell off.  Any time we see a sweeping sell off, its easier for me to look at weak performers like this as intraday short candidates.  It has twice tried and failed to convincingly break out of late Dec./early January consolidation, resulting in a fairly shallow double top formation, with highs at 93 in mid Jan. and early Feb.   A weak trading day Friday saw a failed gap higher and heavy trade into the close, below its 20d, and 50d Moving Averages and the stock is now probing downward support at 88.35.  The next stop below there will be the consolidation range lows around the 86 area from mid Dec.  I won’t be short the name if the market goes green, and won’t be short if the stock finds its way back above 89.50, which is where it sold off from Friday afternoon.

3.) Small cap or sub $10 momentum long:  FXEN

Another GoPauseGo setup here.  FXEN saw a very clean and sharp range break on Thursday, and followed up with a  tight inside day on Friday, trading between 6.55 and 6.75 during the opening range, and basically in a ten cent range the rest of the day around the 6.60 area.   Two trigger areas to the upside are 6.75 Friday highs, or 6.82 highs from Thursday.  There is not much resistance on the daily chart above until 7.40/7.50 old pivot low area from late June of last year.  Will likely leave the stock alone if it trades below 6.55 after the opening range.

The creation of this morning’s Early Bird Report was helped by the music of TV On The Radio

The Early Bird Report

Early Bird Report 2-24-12

Mild gap higher in the SPY’s so far, though as I’m writing this we are sliding to lows of the premarket.  Yesterday was another win for the bulls as we shrugged off some weakness at the bell and steadily rallied throughout the morning, and were able to hold price in the afternoon with some sideways action/chop.  The 137.05 intraday high from Tuesday will likely be the battleground near the open, along with last May’s  pivot high of 137.18.  If we clear those areas, there isn’t a whole lot of resistance above, and the upper band of the rising channel doesn’t come into play until the 139 handle, according to my charts…though if you use a shorter term upper trendline band going back to Feb.3rd gap up highs , there is some resistance around 137.90.    We shall see.  I’m not totally convinced that we will do anything special to the upside today based on the fact that volume seems light and sell programs have been too prevalent lately…but PRICE is PRICE and you can’t ignore the trends and charts.

News/Earnings Stocks

Gapping Up–  CRM   OVTI  AIG  MRVL   SD  CHTP  JOBS  WTI  MGA  TESO  KDN

Gapping Down —  MELI  DECK  CROX  MCP  MHK  ATPG  RBCN  XCO  ENDP  ANR  MNST  CUBE  GPS  JCP

No indication —  AMSG WBMD  OFIX  ADSK  UEIC  MOH  LYV  CEC  ACTV  EPR  BOOM  NDSN  HLS  ENV  CBI  BIO   NEM  FRX  MFN  FTI  PSA  IBI  LNG  CYBX

Watchlist: This is a breakdown of stocks w/ certain technical characteristics in light of  yesterday’s action, NOT a recommendation to Buy or Sell. Always consult your own registered broker/advisor before initiating any positions.

Under $10  long momentum  looks with strong closes/actionable charts: SKY  OMX  FLEX  FXEN

Over $10 long  looks w/ strong closes/actionable charts coming out of a range: FWLT  AVY  MDR  FRX  YOKU  JEC  RGS  DAR  MDU  IBM  LULU  COST  VRSN  SYK  IOC  D

Weak close/weak chart: PFE  SKUL  HRL

Trading up to MA resistance:

20d: NTGR  BBBY  HSY  VAR  TCK  ICIX  CRR  JDAS

50d: BBBY  MTN  D

200d: SCHW  WFT

Trading down to MA support:

200d: LH  ONXX

50d: TIF  IWN  KFT  KSS

2od: CPA  TIF  IPGP  SPR  VMED  BBG   ABMD  STZ  BRO  BRCM

GoPauseGo Candidates: MA  NBR  V (up) // BBY (down)

Current Positions in our Ditto Trade Mirrored Swing Account: (For a review of all ourswing trades for the current year, check the “Swing Trade Updates”" category within our blog).

Long SVM from 7.37 (1/3 of original position…sold 1/3 at 7.64 and another 1/3 at 7.84)

Long PKT from 19.56

3  ideas for today’s trading day:

These are ideas…. NOT recommendations.    The idea behind this section of the report is to illustrate my thought process when looking at potential swing and day trades.  Often times I trade these setups, many times I don’t…dictated by market tone for that day.  Complement these ideas with your ownresearch before making any trading decisions.   Always consult your own registered broker/advisor before initiating any positions.

1.)  Traditional long:  COST

The stock saw a nice pop at the beginning of Feb., rallying from 81 to 86, and since that 3 day rally, has pulled back and consolidated in and around its 20d MA, holding that level 5 different times.  Finally put in a strong close near highs yesterday, and looks ready for another run.  I think that this name/idea is one  that would certainly be helped by a strong broad market move past last summer’s highs.  The 20d MA is now at 83.85, so that will be my stop out area and a level that I won’t want to be long below.

2.) Traditional short: SKUL

Ugly bearish engulfing candle yesterday on heavy volume after its earnings report.  The stock was actually indicating higher in the premarket, but sold off hard on the open  and then couldn’t muster any sort of rally before closing on lows as investors/traders clearly didn’t get what they wanted this quarter.  It closed  on its 20d at 14.63, and if it can’t hold that level, I think it has a chance to slide down to its 50d at 13.52.

3.) Small cap or sub $10 momentum long:  OMX

Watching this highly shorted retailer of office products after a strong post-earnings move yesterday on good volume.  The chart as a cup and handle look too it after closing over its 200d and the name is loaded with shorts, which could provide an extra boost if it is able to clear 2012 pivot high resistance around 6.15.   Won’t chase it on the open, but ideally if it consolidates around yesterday’s highs near the 6.00 mark, I’ll look to possibly enter if the market is rallying.  Won’t be long underneath 5.75 afternoon lows from yesterday.

The creation of this morning’s Early Bird Report was helped by the album  Innervisions

The Early Bird Report

Early Bird Report 2-23-12

SPY’s are indicating a little bit higher this morning after another choppy, mildly bearish session yesterday that saw us leak into the close.   Personally, I’d rather see us pullback  with more purpose rather than just drift like we are doing now.  Not many setups appear in these types of markets and it becomes difficult to locate/trust many trades.  I think that its silly to think that this is anything more than some resting/distribution at near term highs, since we are still firmly in an uptrend right now…we’ll need to break convincingly below our steep rising channel in the SPY’s for me to think differently.  That said, follow through has been harder to find, so I think its very important to be in the right names/sectors right now in order to find liquidity.

News/Earnings Stocks

Gapping Up– VVUS  QCOR  RGR  QIHU  OREX  ARNA  SKUL  CBOU  ESV  HTZ  XIN  PAAS  DISH  PCS  SXCI   RIG  ONXX  RDN  DRI  LKQX  MELA  SHLD  IDCC  DDS  LOOP

Gapping Down —PPO  ADI    FLS  TWI  LTD  HPQ  DRCO  FWLT  TFX  KSS  TSL  GTI  ANSS  NIHD  SFY GNK  BLKB

No indication — ORA  IART  IRM  GPOR  CLR  HRL  WMAR  PDCO  IMAX  BRY  OMX  PXP  OCR  TGT  KBW  FLR

Watchlist: This is a breakdown of stocks w/ certain technical characteristics in light of  yesterday’s action, NOT a recommendation to Buy or Sell. Always consult your own registered broker/advisor before initiating any positions.

Under $10  long momentum  looks with strong closes/actionable charts: NG  TEAR  XIN  PLUG  THM  LSG  TGE

Over $10 long  looks w/ strong closes/actionable charts coming out of a range: NYX  REXX  HAL  SLB  NOV  V

Weak close/weak chart: DDR FST  MTZ  CB  UTHR  JOE

Trading up to MA resistance:

20d: BCE  MON

50d: KGC  FLO  PFE

200d: WU

Trading down to MA support:

200d: RMD  VNO  COG  MAN

50d: WIN  GLW  CAR  UAL  KFT

2od: VNO  CACI  CNL  RSG  SYNA  PETM  CPA  HON  TIF  BAM  GLNG  AVT  BAX  OXY  APKT  LZB  BYI  AMG  EQY  MMM  BRO  BCR  CSCO

GoPauseGo Candidates: BKI  CSOD

Current Positions in our Ditto Trade Mirrored Swing Account:

Long SVM from 7.37 (2/3 of original position…sold 1/3 at 7.64)

3  ideas for today’s trading day:

These are ideas…. NOT recommendations.    The idea behind this section of the report is to illustrate my thought process when looking at potential swing and day trades.  Often times I trade these setups, many times I don’t…dictated by market tone for that day.  Complement these ideas with your ownresearch before making any trading decisions.   Always consult your own registered broker/advisor before initiating any positions.

1.)  Traditional long:  MMM

I’ll be honest…this is less a daytrade and more a swing trade idea.  The stock has traded sideways all month in a tight range, and it is now seeing its 20d MA rise up and touch price as well as its 50d cross its 200d  (bullish golden cross).  Essentially, I think this becomes an inflection price and will serve as a catalyst for a move out of this range.  However, with any stock that trades sideways like this, it is vulnerable to the opposite move to the downside.  If it loses its 20d (let’s say coinciding with a market correction), I think a trip back down to its 50/200d Moving Averages is in play.  But, with the market still in a very bullish uptrend, I’ll be watching for a break through 88.25 for a potential.swing long (and possibly day trade) entry.

2.) Traditional short: SYNA

First close under its 20d moving average since the beginning of the year, the stock has been in a sideways range between 37 / 38 (a few wicks above 38 during that time but never a close there) since 2/10, never able to close back above its 10d during that period.  Will watch yesterday’s a.m. range low of 371.13 as a possible trigger entry lower if we have a weak market, with a generous target around 35 (Oct/Nov pivot highs), though I would recommend taking profits and moving down stops along the way. Wouldn’t want to be short this name above 38, as the same range break move could happen to the upside.

3.) Small cap or sub $10 momentum long: NG

Not much in the small cap/momentum space sticks out to me right now, as follow through is difficult to come by.  Gold stock saw a big jump yesterday, and NG has a chart that actually looks decent with that backdrop.  It had been trading nicely, up over 10.50 per share before announcing an offering that dropped the stock lower.  Chopped sidewasys for the past week or so between 8.50 and 8.75 before finally using the gold rally to move out of that range yesterday.  Will watch for a move above 8.90 to see if it can run up to toward its Moving averages.  NOTE:  this stock saw a big spike in price in the afternoon right up to its 50d on heavy volume before snapping back.   That 9.10 area is the first target.  Will ignore the name/stop out below yesterday’s lows of 8.61

The creation of this morning’s Early Bird Report was helped by the album Three Feet High and Rising

The Early Bird Report

Early Bird Report 2-22-12

SPY are pretty much unchanged here this morning after we saw more sell programs come into the market yesterday afternoon.  They weren’t able to do any real damage, however, as the final few minutes saw a bounce to bring us back toward the middle of our range (familiar).  From a trading perspective, I thought that yesterday’s action was lousy…maybe traders weren’t back yet from a long weekend (physically or mentally), but there just wasn’t much to get behind.  Bulls are still in charge here though, as we continue to trade firmly within our strong rising bullish channel from December.  However, we are still seeing waves of sell programs come through the market, occasionally taking advantage of the lack of liquid bids up here at near 6 month highs.   Support/resistance levels remain fairly unchanged from yesterday after a doji candle.

News/Earnings Stocks

Gapping Up–  PKT  FIRE  TXRH  CSIQ  WIRE  MOS  HLF  LZB  BRCD  INTU  GRMN   YNDX  CHS    CLH  HSTM  RRC

Gapping Down — DELL  WPRT  NPK  NFX  CAKE  BAS  MGM  TOL  YGE  TRAK  REXX  CELL  DCI  LL  DLTR  CHK  CYH

No indication —  CHK  PZZA  ITC  PWR  GNK  RRD  AFAM  LAD TUDO  BRKR

Watchlist: This is a breakdown of stocks w/ certain technical characteristics in light of  yesterday’s action, NOT a recommendation to Buy or Sell. Always consult your own registered broker/advisor before initiating any positions.

Under $10  long momentum  looks with strong closes/actionable charts: MTG JADE  ZN  GRO  SCEI  MERU  LEDS  SVM

Over $10 long  looks w/ strong closes/actionable charts coming out of a range: PAAS  SLF  YNDX  MA  MFN  TWI

Weak close/weak chart: GPC  UPL  NFLX  SPRD  TUP  BRE  BAX  MRX  SFLY

Trading up to MA resistance:

20d: GOLD  BKI

50d: FTK  FLO  HSY  NEM  EL  UGI

200d: GG  AFAM

Trading down to MA support:

200d: SON ENDP  ATVI  RMD  STJ

50d:

2od: BCR  FSL  CROX  AMAT  HAS  URI  VLTR  CUBE  TSS  N  CPHD  EME  MMM  SFLY  VRA  NKE  OHI

GoPauseGo Candidates: CMCSA  ROYL

Current Positions in our Ditto Trade Mirrored Swing Account:

Long BBG from 27.53 (1/2 of original position)

Long SVM from 7.37

3  ideas for today’s trading day:

These are ideas…. NOT recommendations.    The idea behind this section of the report is to illustrate my thought process when looking at potential swing and day trades.  Often times I trade these setups, many times I don’t…dictated by market tone for that day.  Complement these ideas with your ownresearch before making any trading decisions.   Always consult your own registered broker/advisor before initiating any positions.

1.)  Traditional long:  PKT

This is an earnings play, that is already seeing a significant gap higher after a second consecutive (significant) beat.    In my opinion, earnings plays like this (gapping higher) force traders to make a decision on whether to buy right away (and risk the stock pulling back into the gap) or to wait out the open for some sort of pullback or consolidation.  PKT adds another layer to this as it is fairly thinly traded, and may see some extra volatility and wild swings/spreads.  From what I can gather, the bullish outlook after earnings would be that its a 2nd consecutive big quarter from an undercovered name that will draw interest as it hits 52 week highs.  The bear case would be that it saw margins dip a bit this quarter and that may be cause for some profit taking after a nice 6 month run.  NOTE:  I don’t pretend to know exactly what the real sentiment will be, I just try and be aware of both sides so that I don’t get blinders on about what ultimately will likely be a daytrade. Yesterday afterhours, the high was around 20.75…up from its closing price around 19.04.  If the stock consolidates up near that level and holds up fairly well, I would look at that area as a trigger spot.  If the stock starts to pull back into the gap, I will may look to (gently and on the bid) pick some up around the 20.00 and 19.50 levels, to see if it can catch…trying to read price action a bit.  What I don’t want is to get in the way of a sharp drive lower.  If this stock gives a hint it may go red, I’ll be out.

2.) Traditional short: ENDP

The stock saw a sharp three-day drop in early February from $38+ down to around 35.25 (in a Go/PauseGo fashion), and since then has traded in a fairly tight range, always closing between 35 and 36.  Yesterday’s closing price (35.01)was the lowest it has seen during that time, and it now looks to be challenging support at its 200d (34.91) and 2/10 intraday pivot lows (34.70).  If it trades below those areas, all relevant MA support is gone,  the recent consolidation confirms a  bear flag pattern  and there is little support on the daily chart until early 2012 pivot lows at 32.82.  That said, this is still an extremely difficult market to short.  I wouldn’t touch the name if it is trading green, and would like to see broad market weakness.

3.) Small cap or sub $10 momentum long:  MERU

Strong trading day yesterday in this beaten up name, trading out of a tight week long range and closing near highs on heavy volume right at its 20d MA.   4.35 would be trigger area for a continuation move today, would use 4.12 midday pivot low from yesterday as a stop and 5.00 area as a first target.

The creation of this morning’s Early Bird Report was helped by the album Life’s Rich Pageant.

The Early Bird Report

Early Bird Report 2-21-12

SPY’s are gapping up mildly after a long weekend that saw the official bailout package passed in Greece (here’s hoping we can stop pointing to Greece as a market mover for awhile).   Oil is bid up a bit on more Iran tension and export cuts, and we saw another round of earnings, with large caps HD WMT and KFT the largest held names.    Looking at the SPY chart, we are still firmly trading within our steep, rising bull channel that we have been in since the end of December.  137.18 level (5/2/11 pivot high) is looming resistance  now that we have cleared all other pivot highs from last summer…the last being 135.70 (7/7/11 pivot high).  In case we get a sell the news/Monday sell off, I will be watching that area as retest support to the downside, as well as the 135 area which represents the the bottom TrendLine of our rising channel.

News/Earnings Stocks

Gapping Up– CORT  WYNN  THLD  COG  YNDX  HD  URS  KFT  MHS  RSH  DAN  DANG  M  SKS  SWC  BYD  WPRT  IMAX  WLT  HL  GLNG

Gapping Down — WMT  GTXI  CTRP  ORB  CIEN

No indication —  WTS  CHH  DORM  PDC  WLK  CRZO  JAKK  SHOO  GTE  CBRL  DAKT  FUN  FELE  LGND   CCO  GLDD  WAB

Watchlist: This is a breakdown of stocks w/ certain technical characteristics in light of  yesterday’s action, NOT a recommendation to Buy or Sell. Always consult your own registered broker/advisor before initiating any positions.

Under $10  long momentum  looks with strong closes/actionable charts: GCA  RSH  BYD  JRCC  XCO  WRES  ROYL  AAV  TISA  DMD  DBLE

Over $10 long  looks w/ strong closes/actionable charts coming out of a range: COST  BGS  WFC  FWLT  IBM  INTC  WMT  CECO  AVY  SYY  TRMB

Weak close/weak chart: BIIB  MSCI  PWR  LIFE  VRX  FDX  ARUN  RPM  PLCE  CAG  SPPI  TZOO  LINTA  ENDP  RMD

Trading up to MA resistance:

20d: MKC  MON  IRM  HSY  LLY  MCHP  SNI  SIRO

50d: CHKM  VZ  AMZN  ERF  FLIR  LINE

200d: ATML  L  RPM

Trading down to MA support:

200d: GFI  MLHR

50d: ATVI  CAG

2od: EXPE  CACI  MASI  RY  ATW  FRAN  DHI  KBR  SBUX  PMC  RMD  STEC  RSG

GoPauseGo Candidates: MRGE  MTG  CHRW  SHFL  WDC  MSFT  NUS  COO  ITRI  XLNX  NDAQ  DRI (up)   HTZ  IO  (down)

50d bullish crossing 200d:  Over $10: FNSR  IBKR   CSTR   PCLN  ICE  PRU  TRS  SWFT   KKR  IBKC   ESRX    ZBRA  CTSH  MTB  WGO  WWW MITK   RY  KIM   TWI  NTRS  PDCO  NOC  Under $10:  CNO  GNK  WRES  INFN  AMCC  COCO  QTM  ZQK  CPE  MTG

50d bearish crossing 200d: AVAV  GDI  WCN

20 bullish crossing 50d:  RRC  DBLE  ALLT  TIF  SWN  BSFT  VC  GNVC

20 bearish crossing 50d:  CVX  GLW VHC  MCD  PPO  ABFS  MBI  ARLP  FLIR

Current Positions in our Ditto Trade Mirrored Swing Account:

Long BBG from 27.53 (1/2 of original position)

3  ideas for today’s trading day:

These are ideas…. NOT recommendations.    The idea behind this section of the report is to illustrate my thought process when looking at potential swing and day trades.  Often times I trade these setups, many times I don’t…dictated by market tone for that day.  Complement these ideas with your ownresearch before making any trading decisions.   Always consult your own registered broker/advisor before initiating any positions.

1.)  Traditional long:  XLNX

This is a traditional GoPauseGo setup (props to Steve and Andy at TodayTrader, who were the ones that coined that phrase…at least as far as I know), as the stock had a clean break out of a post earnings range on Thursday, only to put in an inside day on Friday (range completely contained inside the previous day’s range).   The stock flirted Friday morning with a continuation move, but was sold off immediately after printing Thursday’s high.  The resulting selloff pushed the price down below Thursday’s closing print by a few pennies before settling in the middle of its daily range, closing at 37.28.  This is typical movement (unfortunately) for many stocks as they attempt traditional breakouts.    It is why I scan for these setups…multi-day moves are too often broken up these days, especially at obvious spots (like 52 week highs).  I will be watching Tuesday for a clean break of the 37.50 area for a nice daytrade as long as the market is strong (will also be watching the semiconductor sector as well for more color).  It is the type of trade that looks good as both a possible day and swing trade, and if we enter and it extends price, we’d have to think about swinging the final portion of the trade in this very strong stock.  I will be out/avoiding the name if it trades below 37.

2.) Traditional short: FLIR

Has been trading sideways in a descending triangle pattern for about 6 months now, and has been a relatively poor performer so far in ’12, trading about unchanged.   A steep drop on Friday 2/10 saw the stock drop hard below all of its major moving averages, before rallying the past four days right back up to its 20d.   The last day of that rally was Friday, and it appears to have run out of steam there at its 20d, as it put in a doji candle after 3 previous solid positive candles.   The aforementioned 20d is now crossing below its 50d, which is a bearish catalyst, and the stock seems to me like it could be vulnerable in a weak market.  I’ll be watching Friday a.m. lows of 25.40 as a short entry area if the market is in fact selling off.  This would strictly be a daytrade, and I’ll ignore the trade as long as the stock is trading above 25.75.

3.) Small cap or sub $10 momentum long: DBLE

Has been on my radar for awhile as oil/energy prices have started to rise, and finally started to see it move a bit Friday as some other small cap names took off.  This stock often trades very little volume, and can be thin…so if this bothers you, I’d stay away.  However, the stock is at a pretty interesting point, threatening to break above a two-month declining TrendLine AND a nine-month declining TrendLine.  Were are also seeing its shorter term Moving Averages (10 and 20d) cross above its 50d Moving Average, which can be a bullish catalyst as well.  It’ll be important to monitor volume in the name and avoid buying the tops of short term candles, but a clean break past Friday’s 7.40 high from Friday and I think a move toward its 200d at 7.95 is in play, with Nov. pivot highs around 9.25 another target area.  I would avoid the name if it finds its way below the 7.20 area (if day trading), and would use a.m lows of 7.05 or its 20d MA (currently 6.93) as a swing trade stop loss area.  I would also make sure to try and get a feel for whether the energy sector, and specifically small cap oil/gas names continue to stay bid

The creation of this morning’s Early Bird Report was helped by the album Who’s Next.

The Early Bird Report

Early Bird Report 2-17-12

Mild gap higher in the SPY’s after a truly impressive performance by the bulls yesterday.  Many, including myself, were thinking that the market was going to pull back after the weak action on Wednesday, but the buying started almost immediately and continued throughout the whole day.  That was the saving grace for many, as there wasn’t even a convincing fake out lower, and traders were able to adjust as it was fairly clear early that there was a bid across the market.    Its very easy to become super bullish after a day like yesterday, and for good reason.  However, today is a Friday before a long weekend, and there is always a chance we’ll see some profit taking, and/or witness a real slowdown in trading activity and liquidity as the day wears on.  I think the trading will be fast/furious on the open and then slow significantly, as many traders (including myself) will be looking to make this an early day.

News/Earnings Stocks

Gapping Up– IDIX  ACHN  SPWR  AMAT  CLD    ECA   VRTX  HNZ  ROVI    DVA    CTIC  RAIL  CPB EOG   B

Gapping Down —   GILD  QLIK   WOOF  RP  ARUN  GIS  MXWL  JWN  AGP  BIDU

No indication —   REV  CBEY  BGS    LEAP  DMD  FTR  OIS  NTSP    KSWS  LPNT  PPC  WWWW  BLDR  KEG FRO

Watchlist: This is a breakdown of stocks w/ certain technical characteristics in light of  yesterday’s action, NOT a recommendation to Buy or Sell. Always consult your own registered broker/advisor before initiating any positions.

Under $10  long momentum  looks with strong closes/actionable charts: JRCC  TPLM  VOG  UEC  URRE  USU  CERS  GERN  SKH  SUNH  CWTR  PSUN

Over $10 long  looks w/ strong closes/actionable charts: MPEL  MFN  AXP  ADI  APH  GPC  BLK TMO  WAT  DO  HPQ  WMS

Weak close/weak chart: RYL  SYY  KFT  KFY  BGS

Trading up to MA resistance:

20d: BMY  NSR  SPLS  XOM  NLSN  PFE  KLAC RGLD  INSP  MCHP  GIS

50d: MCD  CHKM  MCP  PFE  EL  RRD

200d: NYX  URBN  NEM

Trading down to MA support:

200d: TRP AON SYY

50d: SE DE  NLY

2od: BIIB  PWR  RPM  DTV  SBUX  PWRD  TJX RY

GoPauseGo Candidates: CMCSK  SKUL XEC NIHD (up) EBIX ETH NUAN(down)

Current Positions in our Ditto Trade Mirrored Swing Account:

Long GMXR from 1.60 (1/2 of original position.  sold 1/2 at 1.93)

Long BBG from 27.53

Long JRCC from 6.58

3  ideas for today’s trading day:

These are ideas…. NOT recommendations.    The idea behind this section of the report is to illustrate my thought process when looking at potential swing and day trades.  Often times I trade these setups, many times I don’t…dictated by market tone for that day.  Complement these ideas with your ownresearch before making any trading decisions.   Always consult your own registered broker/advisor before initiating any positions.

1.)  Traditional long:  WAT

Nice reversal day yesterday (like many stocks), it left a wick after making early opening range lows and traded strong the rest of the  day, closing near highs.  The daily chart pattern looks nice…it based in a range from Aug-Jan, trading between 71/81 areas, before breaking out of that range in mid January, running up into the mid 80′s.  Since that mid Jan. spike, we’ve seen some bullish consolidation (almost like the handle on a cup/handle pattern…though the handle is a bit shallow).   If we move past yesterday’s afternoon highs at 89.54, the 90 pivot level from early Feb. becomes a target, and beyond that there is no real resistance on the daily chart for awhile.  For a day trade, I’d use yesterday’s afternoon range low area around 88.75 as a line in the sand.   I won’t want to be long below there.

2.) Traditional short: TJX

Conceptualizing short trades is not easy to do in this market right now.    The market just can’t wait to buy up any dip, and downward follow through is very difficult to find outside of news/earnings plays.  The question for short sellers, is…do you wait for more traditional short setups (hard to find), or do you try and fade strength?  I, personally, do not like to fade strength, so I’ll just try to find some stuff that sets up in some way for a POTENTIAL short, while allowing myself tight parameters so that I can avoid fighting the trend.  TJX fits the bill today.  Don’t get me wrong, the stock has been super strong, and the chart is very strong.  You might say that I am fading strength here, but I am just looking at it as a daytrade.  The stock was an underpeformer yesterday in a very strong market, trading sideways after a distribution day Wednesday, sitting on its 20d MA.  If it loses that level today, it may be worth a a look as a short.  Yesterday’s tight range allows us some easy/tight risk parameters, as we’ll use yesterday’s a.m. highs of 34.50 as a line in the sand.  If it trades above there, we’ll ignore.  If it slides through the 34.10 area, and the market (somehow?) is weak today, it will be worth a look short.

3.) Small cap or sub $10 momentum long: UEC

Beautiful looking daily chart, and a very impressive day yesterday after uranium names caught a bid.  The stock did huge relative volume as it broke out of a recent bullish wedge.  My only concern is that we may see a sideways digestive day today, and those can be choppy.  Will keep an eye out for any sharp pullback on the open for a place to put on a bigger trade…I will likely tread likely trying to buy through yesterday’s highs.

The creation of this morning’s Early Bird Report was helped by the music of  Chicago.

The Early Bird Report

Early Bird Report 2-16-12

SPY’s are gapping down a little bit this morning after catching an AAPL flu yesterday afternoon.  The steep sell off in AAPL shares brought the SPY’s and QQQ’s down with it, as it is a heavy component of both, as well as a psychological “leader” for the market.    As of now in the premarket, SPY is trading around 134.35, which is just above the  supporting  TL in the rising channel we’ve been in since mid Dec. (though we traded just below it for a time this a.m.).    More support below there comes in the form of the 20 MA at (133.20), which has a similarly sloped line parallel to that TL. 133.02 is more support as it is the 2/2 close before a large gap.  Well below that, we have pivot low support at 130.06 from 1/30.   The market tone just feels heavy, and it we may just get a multi-day pull back/correction.   As I’ve mentioned before, this is not a bad thing, and is actually very healthy for the market.  Unfortunately (for me, anyway…everyone trades differently) these pullbacks don’t make for greatest or easiest trading days….especially as I remain bullish longer term.   I mean, we’ve already seen conditions deteriorate in the past 3-4 sessions (masked by AAPL’s huge run that propped up SPY and QQQ), and found difficult trading conditions.  Now, if we see the SPY/QQQ’s actually start to take out lows, I feel like liquidity will be hard to come by.  I will look for pockets of opportunity during the day but most of all keep an eye on some stronger names  as the pull back to key areas of support.

News/Earnings Stocks

Gapping Up–  RLOC  NTAP  ITRI  TRN  Z  VDSI  DTV  TSLA  CAB  HOS  GNC  TRW  DISCA  PFCB  APA  AAP

Gapping Down —  NILE  HDY  DGIT  CAR  HBI  EQIX  GGC   VFC   SJM  PMFG  NVDA  SKX  TNGO  CF  MAR  ATHN  HWAY  ACOM  CBS  A  SPW  DTLK  ABX  GM

No indication — SAVE  ECOL  ACOR  LOGM  STRA  CRDN  POOL  HEP  TYPE  H  XRAY  KNOL  LTM  VMC  VCI  UPL

Watchlist: This is a breakdown of stocks w/ certain technical characteristics in light of  yesterday’s action, NOT a recommendation to Buy or Sell. Always consult your own registered broker/advisor before initiating any positions.

Under $10  long momentum  looks with strong closes/actionable charts: NEPT  TRGL  GMXR  SPMD  GLDD  ALSK  TRGT  MSPD

Over $10 long  looks w/ strong closes/actionable charts: NIHD  SNDK  MELI  QCOM  OPEN ARCO

Weak close/weak chart: DAR  PCP  AMZN  BHI  KSU  MDP  ORCL  BVSN SYY  MA

Trading up to MA resistance:

20d: BBG SPB  NAT

50d: CNX  FIO

200d: CBG

Trading down to MA support:

200d: BBBY  EXK  LRCX  BKD  BCE  PLCE  SYY

50d: GEO  WLT  TCK  HAL  NUAN  GLW

2od: C  INTC  WM  PETM  PRE  YUM  GET  SPG  BWC  MNST  FDX  CSCO  SODA  IBM  TJX  ALB COST

GoPauseGo Candidates: GLDD  CLR  (up) ZIP SGEN GT (down)

Current Positions in our Ditto Trade Mirrored Swing Account:

Long GMXR from 1.60 (1/2 of original position.  sold 1/2 at 1.93)

Long BBG from 27.53

3  ideas for today’s trading day:

These are ideas…. NOT recommendations.    The idea behind this section of the report is to illustrate my thought process when looking at potential swing and day trades.  Often times I trade these setups, many times I don’t…dictated by market tone for that day.  Complement these ideas with your ownresearch before making any trading decisions.   Always consult your own registered broker/advisor before initiating any positions.

1.)  Traditional long:  ARCO

I like this name simply because it will give me a name that performed well yesterday in lousy market, while also allowing me to keep stops tight and a decent target from a risk/reward scenario.  The stock had slid in early February from 23 back down to 20, but was able to pop back above the $21 level yesterday after a few days of range consolidation on good volume.  I would use 20.90 opening range lows from yesterday as a level where I’d ingore the name if it traded below or a stop level if I enter the trade…looking for a return back to the 22/23 area.

2.) Traditional short:  MA

I hesitate to put this out there as an idea, because it is an extremely difficult stock to trade.  It has been especially tough for shorts, as the stock has been on a tremendous run…from 280 last July to 400 this past week.  Normally I don’t recommend shorting one of the strongest stock in the entire mkt, but what stuck out to me about MA was 3 of the past 4 days it has put in a red candle, suggesting there are willing sellers out there at highs.  Finally, yesterday afternoon, we saw the stock succumb to market pressure, and I feel that if we see more selling today, we could see some recent buyers take some profits in the name as it slides below its 10d MA.    How you trade it depends on your risk toleration.    I absolutely wouldn’t be short the name if it finds a way back toward that $400 level…in fact I wouldn’t be short if it reclaims the a.m. range lows of $397.  I also don’t recommend chasing it too hard on the open if it gaps too far down.  If it does start to sell off, I would look at the $385 area as a first target as it is 12/2 pivot highs/old resistance.

3.) Small cap or sub $10 momentum long:  ALSK

Not my favorite group to be trading in mkt conditions like this, and I really didn’t find a whole lot of setups to like last night, but ALSK isn’t a bad one to watch.  Its another name that has been really beaten up since last July, dropping from 9.00/share down below 3.00.  However, since making 52 week lows in early Jan., the stock has moved sideways w/out making a lower low (in fact making a higher low pivot in late Jan.).  Yesterday, we saw the stock move out of its ’12 range on good volume in the morning…running from 2.80 up to 3.06 on good relative volume.   It did slide back under 3.00 by the end of the day, but this isn’t the worst thing, as it will ultimately keep our risk tighter if we trade the name today.  I will watch the stock for a move past the 3.00 mark today, hopefully taking out yesterday’s highs, and setting up a potential run up to its 50d MA at 3.35.   Won’t be involved in the name if it trades back below yesterday’s 2.80 a.m. low.

The creation of this morning’s Early Bird Report was helped by the music of Interpol.

The Early Bird Report

Early Bird Report 2-15-12

More indecision in Greece/Europe has SPY’s off overnight highs, but we’re still gapping up a bit here from yesterday’s close.  The buyers continue to do a great job stepping in whenever the market feels ready to roll over.  The liquidity up here at these levels seems to be evaporating however, as traders are seeing large spikes in the VXX volume and aggressive sell programs invade the market.   Keeping my bullish outlook, as I don’t want to ignore big picture price action, but I, like many, am trying to stay nimble up here.  My holding times are getting shorter and I am looking to do less from a swing perspective for the time being.

News/Earnings Stocks

Gapping Up–  BPAX    HIG  ACAS  GIVN  TEVA  BCRX  XEC  NICE  WCG  CMCSA  CNMD  PAG  DPS  K  DF  ANF  AFSI

Gapping Down — ZNGA  WSH  PEET  RENN  SAPE  FTI  WTW    OC  DE

No indication —  MASI  INWK  HSIC  ABD  AVA  VMI

Watchlist: This is a breakdown of stocks w/ certain technical characteristics in light of  yesterday’s action, NOT a recommendation to Buy or Sell. Always consult your own registered broker/advisor before initiating any positions.

Under $10  long momentum  looks with strong closes/actionable charts: ATPG  CEDC  HAST AERL ENOC  MU  INAP

Over $10 long  looks w/ strong closes/actionable charts: ARUN  QNST  PEGA  SKX  TIF  XEC  NFX  COG  MCRS  NOV DVA WSM MHK

Weak close/weak chart: CNW  SOHU  ONXX  VRTX  CTRP  TZOO  ABFS  JEF

Trading up to MA resistance:

20d: GIS  EROC  PFE  LINE  D  PMC

50d: HGG  VNR  HUM  WPI

200d: VMED  NYX  RVBD

Trading down to MA support:

200d: ARE  WRE  MDU  LRCX  SCCO  ITRI  CLX

50d: GLW  NLY  X  ELN

2od: SF  LLTC  AVGO  PPS  ACC  WRI  JEC  LHO  CTB  IT  NAV  DXCM

GoPauseGo Candidates: GWW  CFX  CTAS  PRXL ATU  GGG  GTXI

Current Positions in our Ditto Trade Mirrored Swing Account:

Long GMXR from 1.60 (1/2 of original position.  sold 1/2 at 1.93)

Long BALT from 4.29 (1/2 of original position.  sold 1/2 at 4.61)

3  ideas for today’s trading day:

These are ideas…. NOT recommendations.   Often times I trade these setups, many times I don’t…dictated by market tone for that day.   Complement these ideas with your ownresearch before making any trading decisions.   Always consult your own registered broker/advisor before initiating any positions.

1.)  Traditional long:   NFX

Honestly, I really like all of the setups on the strong close/actionable chart list this morning…they all seem like they are ready for their next leg up out of consolidation if we can keep a bid in the market today.  I have to pick one, however, so I’ll choose NFX.  It put in a nice volume bar yesterday, breaking out to Feb. range highs (the bottom of which represented a higher low above its base support Trend Line going bac to Oct.).  After its morning run, the stock plateaued in a tight range near highs, which happens to be bumping up against a declining Trend Line going back to late Nov/early Dec.  This should be a key area this a.m.  If it can clear the 39.60 area, I would  look for a move up to Jan. pivot highs around 41.50.  I will keep stops tight on this name, and hopefully won’t have to chase.  The low end of yesterday’s afternoon range was 39.10, and I would use that as a stop on any longs.

2.) Traditional short:  CNW

The weak post-earnings action (it whiffed) in this name continued yesterday, as it closed on lows on above average volume…slipping below its 50d(29.86) for the first time since late November.    Obviously, the broad market bull trend has made it difficult to short, and stocks that seem to be caving seem to be able to catch a bid when they need to and frustrate shorts.  As such, we’ll just have to keep stops tight.   Anything above 30.25 and we’ll avoid the name as a short idea.    Could look  to initiate a short underneath that area if we gap higher, or could wait to see if it breaches yesterday’s low of 29.70.  Would want to see the broad market go into the red in order to increase odds of success in the trade.

3.) Small cap or sub $10 momentum long:  ENOC

I almost put ATPG on here, as a sub $10 long idea for the second day in a row (see yesterday’s comments on the name), but that didn’t seem right, so I’ll choose ENOC instead.  This can be thinly traded, so beware of that before you decide to trade the name.  Yesterday, however, the stock jumped out of its February range on ++ volume , and we’ll hope that the same type of volume comes in today to help see some follow through.  The stock was able to close above its 50d at 9.84 (barely), although below intraday highs of 10.04.  If it can make it back through that 10.04 area, the 10.60-10.75 area is the next target area.  Yesterday’s afternoon lows around 9.70 (also Monday’s highs) serves as the line in the sand for me.  I wouldn’t want to be long the name below there, and would use that area as a stop out level if any longs get initiated.

The creation of this morning’s Early Bird Report was helped by the music of Elvis Costello.

The Early Bird Report