Early Bird Report 3-30-12
SPY’s are gapping up after a constructive day yesterday, shrugging off early weakness near its 20d MA and rallying up to near highs by the close. Easy to see us trade sideways today within the range set this week as the month comes to an end. Also easy to see how volume could really die out being a spring Friday after a big quarter. Personally, I will be looking for reasons NOT to put on trades rather than aggressively trying to do too much.
Gapping Up– THLD IMGN KUTV
Gapping Down — RIMM TIBX FFN XRTX FINL
No indication —
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: PACR IGOI ASTX VRS STRI DEER MELA REE QRM SCEI CXPO
Over $10 long looks w/ strong closes/actionable charts coming out of a range: FUL CNL DGX SCG VMW CRI UNH HNT SXCI DVA TXT MASI
Weak close/weak chart/downside range break: EA PAYX GME
GoPauseGo: FBHS TNK
Pocket Pullback (3 day orderly pullback from strong trend): CPRT SYNC DKS DLTR REGN ABV IACI ATLS BEE TXN LQDT
Up to 20d: CE
Up to 50d: TWX WR
Up to 200d: JNPR GEO NAT
Down to 50d: FMCN LM
Down to 200d: VCI LAZ
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).
Long DDD from 22.05
Long PWAV 2/3 from 2.12
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: SXCI // IACI
Two different long looks today…one is a range break, the other is a pocket pullback. SXCI had a real nice surge out to 52 week closing highs during the close yesterday and is worth watching today, although we have seen tough sledding for traditional breakout plays. How you choose to get in a play like this depends on your risk tolerance. Personally, I’d wait for the open to play out to see if the stock can give a shallow pullback or sideways action before chasing any new highs out of the gate. IACI is a stock that ran out to 52 week highs early in the week with the market, but since has pulled back (see: Frustrating Breakout Trades) right to its 20d and previous pivot support area. Yesterday was a very narrow range day, so we’ll use the highs (49.05) and lows (48.50) as trigger/stop areas.
2.) Traditional short:
Honestly, this market has made finding shorts really difficult. The stocks that head lower (coal/commodities), already seem oversold, and most other stocks never get any follow through to the downside. I know that this will change at some point, but I’m not going to force myself to any short looks that don’t feel right. I’m sure others can find bearish charts/stocks, but I’m just not interested on this month end Friday…sorry.
3.) Small cap or sub $10 momentum long: SYNC
Watching this recent IPO after it has had a couple of days to digest after a strong run from 5 to 8. Yesterday was a stabilization day…holding the 7.00 level for the second day running, which will be our line in the sand. Watching the stock for some volume through the 7.30 closing range highs from yesterday to see if it can catch some momentum back above 8.00 NOTE: I haven’t traded this stock before, and it looks like it doesn’t do a whole lot of volume. If this bothers you, I’d avoid getting involved. As mentioned, I believe this will be a light day and if there doesn’t seem to be any sort of volume or move in the name, I’ll have no problem avoiding it as well…I just thought it was worth checking out.
The creation of this morning’s Early Bird Report was compiled while listening to the music of Johnny Cash