thetechnicaltrader.net

I alerted RAMR as a day trading opportunity not too long ago though the trade was never triggered. This stock is showing signs of an upcoming breakout as price action and volume and making some bull signals here. Lets take a look at the intra-day chart. A breakout above 2.02 and this stock is a buy for a day trade.

Don’t have much time to say much but the charts are pretty self explanatory. these are all fairly short term trades if not day trades depending on price action. Enjoy TOL, TMA, PMI

 OTCBB: Long

CHNG
CPTC
GSPG
MXFD

shorts:

TSO
JEF
TOL
TMA
IYF
CPWR
FBC
KBH
PMI
PHM
WRLD

Taking a look at the DOW we witnessed a short lived rally back up to the 12.5k resistance/ prior support breakdown where the bulls got swallowed by the force of the bears. Now that this area has been tested again we should be looking for shorting stocks as long as price remains below this 12.5k level. I believe the market is gonna have another leg down judging from this chart pattern. So what do say we look for some shorting opportunities for next week over the weekend ey guys and gals? She was a ho! Fooooooorrrr sho!

Todays Day Trading Wrap: currently i’m trading $10k lots/ trade.

RAMR - trade was not triggered.

COIN - price action gapped up this morning back to descending resistance. I faded the gap and entered at 10.80 on the breakdown. Fading the Gap is a really popular and effective day trading strategy in which to trade morning gaps. Using an interval of your choice price usually consolidates for a short period of time before breaking to the up or down side. I covered this position 9.70

BPFH - This trade worked out exactly like planned. I shorted at the opening and price has retraced over 5% throughout the session and found support near the 13ema. In at 23.50, out at 21.86

DROOY made a solid 17% rally today on increased volume breaking out from an ascending wedge pattern placing this stock on the map for technical analysis breakout buyers. With a forward earnings estimates of .51 and the Gold industry trading at an average earnings multiple of 42.28x earnings, this sets DROOY with an attractive fair value share price among its peers around double from its current pps 11.35 at (42.28 x .51 = 21.56). Although with Gold contracts looking extremely over extended its a tough decision to buy as gold is gonna hit a top sooner or later and endure a correction, which will have an impact on gold stocks, likely similar to the solar correction we are currently witnessing. No plan for buying at the moment but this stock looks bullish and fundamentals are in our favor. Lets feel this one out a little bit longer.

RAMR Looks like a good set up here and being that it is only a $2 stock it has the ability to move in large percentage swings. Breakout over $2/share and this should move fairly strong on the long side.

Looking at BPFH price has made a significant rally back up to its resistance level which will be putting a lot of selling pressure on this stock. I want to go short on this stock tomorrow as we should be able to take out a 5-10% gain on the short side.

COIN is another shorting opportunity that i had alerted before that turned out to be a great short. Price looks like its time to hop in a short term trade on the bear side as price formed a bearish shooting star candle off of descending resistance indicating that price should move down towards support around $9. I intend to hop in short here tomorrow.

Last night i reccomended initiating a day trade on ABK on a breakout of 8.60 resistance as the chart looked great and had a  lot of room to run up to the gap fill at 12.94. ABK just finished the session up 78% to close at 13.94. With this hefty gain i managed to pull out 38.8% on a day trade as i entered ABK at 8.75 and exited at 12.15 on strength as we neared the gap fill. Hopefully some of you readers were able to make some money on this trade today as well

ABK has made a huge decline the past week and looks like a strong squeeze could be in play as price already rallied 28% monday. Looking at the 30m chart price is forming a nice base which could possibly breakout to the upside and accelerate towards the gap fill at 12.94.  If the 8.60 horizontal resistance along with the 50ma is broken on increasing volume this could become and excellent day trade setup on the long side. Keep your eye on this for tomorrow.

Technical analysis
day trading
ABK:

Global markets have been smashed drastically while the US market was closed monday(MLK day), on continued worries of a global slowdown due to the possible recession of the US markets. I imagine the US markets will be hit fairly hard tomorrow especially in the Pre-market. Longs will need to be cut short and my shorts will perform exceptionally tomorrow i imagine.

Heres an article from Yahoo finance with the details:

Asia Markets Tumble on US Worries
Monday January 21, 10:34 pm ET
By Yuri Kageyama, AP Business Writer

Asian Markets Extend Losses Amid Worries That US Is Headed for Recession TOKYO (AP) — Global stock markets extended their shakeout into a second day Tuesday, plunging amid worries that a possible U.S. recession will cause a worldwide economic slowdown. The dramatic declines were expected to spread to Wall Street, where stock index futures were already down sharply hours before the trading day began.

Japan’s Nikkei 225 index, the benchmark for Asia’s biggest bourse, skidded 4.4 percent in morning trading to 12,738.31 points, after dropping 3.9 percent Monday. Hong Kong’s Hang Seng index was down 5.2 percent after plunging 5.5 percent the day before.”Unless we get some positive ’shock effects,’ such as drastic measures from the U.S. government, there is almost no hope for a recovery in stocks,” said Koji Takeuchi, senior economist at Mizuho Research Institute in Tokyo.

U.S. markets were closed Monday for a holiday commemorating civil rights leader Martin Luther King Jr. But Wall Street future prices were down sharply, portending a plunge when trading begins at 9:30 a.m. Eastern time.

Dow Jones industrial average futures were down 436 points, or 3.6 percent, at 11,670, while Standard & Poor’s 500 futures were down 57.1 points, or 4.3 percent, at 1,268.

Markets have been plunging amid pessimism about the ability of the U.S. government to prevent a recession. The Federal Reserve has indicated it will lower interest rates further, and President Bush has proposed an economic stimulus package that includes $145 billion in tax cuts, but investors around the world are doubtful that the measures will lift the economy quickly.

The U.S. economy has been battered by a slump in the housing market and a credit crisis that has led to billions of dollars of losses among major U.S. banks.

In Europe Monday, investors also dumped stocks, sending the Britain’s benchmark FTSE-100 down 5.5 percent and France’s CAC-40 Index sliding 6.8 percent. Germany’s blue-chip DAX 30 plunged 7.2 percent to 6,790.19.

Takeuchi said investors feel that the selloff is spreading worldwide, setting off fears of a global downturn. Risks of economic contraction have been growing in Japan as both exports and consumer spending are weakening, he said.

Kirby Daley, strategist at Newedge Group, said the Nikkei could shed another 10 percent to 15 percent to the 11,000 level in the next few months. Japanese companies depend on exports and capital investments to keep up profits, and both are endangered if there is a U.S. slowdown, he said.

“The argument that valuations are cheap for Japanese stocks is flawed,” Daley said. “The basis for those earnings valuations doesn’t consider ongoing problems in the U.S. economy, which are likely to get worse.”

Even usually upbeat Japanese Economy Minister Hiroko Ota acknowledged that downsides risks are growing, given the volatile markets and surging oil prices.

“The economy keeps recovering as recent production data show, but downside risks are growing these days,” Ota told reporters.

A little boy goes to his dad and asks, “What is politics?” Dad says, “Well son, let me try to explain it this way: I’m the breadwinner of the family, so let’s call me capitalism. Your Mom, she’s the administrator of the money, so we’ll call her the Government. We’re here to take care of your needs, so we’ll call you the people. The nanny, we’ll consider her the Working Class. And your baby brother, we’ll call him the Future. Now, think about that and see if that makes sense,” So the little boy goes off to bed thinking about what dad had said. Later that night, he hears his baby brother crying, so he gets up to check on him. He finds that the baby has severely soiled his diaper. So the little boy goes to his parents’ room and finds his mother sound asleep. Not wanting to wake her, he goes to the nanny’s room. Finding the door locked, he peeks in the keyhole and sees his father in bed with the nanny. He gives up and goes back to bed. The next morning, the little boy says to his father, “Dad, I think I Understand the concept of politics now.” The father says, “Good son, tell me in your own words what you think politics is all about.” The little boy replies, “Well, while Capitalism is screwing the Working Class, the Government is sound asleep, the People are being ignored and the Future is in deep shit.”

otcbb:

bsrc
mxfd
levp
tcco
soigf
ccyg
copi

shorts:

t
fpl
nihd
jnj
afl
pph
s

SEPR came up on my technical analysis scans the other day which looked attractive as the chart look quite attractive on  the long side. Digging a little dipper we can see that SEPR had a huge decline in price action mid year  due to a big drop in earnings for Q2 and announcement of a 300 personnel cut back to cut costs. Price dropped from its peak near $62/share as low as $22/share. over the last 5 months  Sepracor has formed an excellent looking base which lead to the formation of a great looking symmetrical triangle that has been confirmed on a breakout to the upside as of late.

SEPR had a rough year in 07′ expecting to report 1.46eps compared to 06’s 1.60eps. Although looking forward they’re expected to have a huge year in 2008 with analysts expecting 2.33 eps giving SEPR a very low P/E 12.85 and depressed valuation among its industry peers. The biotech industry is currently trading at a 28.7x earnings multiple indicating SEPR’s future fair value within its industry at around $66/share.

I like the forward earnings and valuation of this compnay. Not to mention the great looking stock chart. I purchased a 1/2 position  Wednesday at 29.90

Being a fellow guitar player myself i thought this was pretty cool. John Mayer rockin the “love stoned” interlude by justin timberlake on his electric. Enjoy!

The index’s were slammed yet again today in this continued whipsaw that we’ve been put through the last several sessions. The Dow closed the session down -277 points and inked the lowest close in nearly 9 months. The market continues to look depressed in favor of the bears so diversification on the short side seems warranted. Semis and Techs should be fairly weak tomorrow as Inetl reported earnings below expectations by .02 and is down 14% in extended hours trading.

After running the short filter im going with 4 stocks that appeared to have the best trading set up on the short side. I’ll be looking to only fill 1/2 positions in these stocks tomorrow. Short term there could be a rebound on the bull side which is where i will fill the second 1/2 positions though overall i expect to see these stocks to continue the decline.

First stock is TRID:

JRJC:

CY:

LWSN: