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.
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