The 2 Best Stock Charts I found in The Markets 3% Rally Today. And Of Course I bought them!
Jul 16, 2009 Small Cap Stock Picks
It was an insane day in the market with stocks on a feeding frenzy for more bull poo with the DOW closing up 256 points and 3.07%. It was not too long ago when i was weighing heavily on the short side after the index’s broke down a top heavy bearish head and shoulders pattern.. Ya…. that was 4 sessions ago. I didn’t have a good feeling about holding my short positions going into the earnings week and we managed to cover all of our short positions @ the open of the first day of this past 3 day rally which locked us in some profits.
As i had stated in the previous post about the skeptical Bearish Head and Shoulders pattern of the DOW:
“Although news either bad or good about the economy is what can really flip the market in any direction right now. So technically we could breakdown on Monday then the next day some news could come out and turn the market around making it look like a false breakdown. Hard to call these days with so many false signals out there. But overall imo, the market currently looks in favor of the bears.”
Sure enough thats exactly what happened the market just went ape shit for the bulls right after an extremely bearish technical signal. The market is so flip/flop right now one day i’ll be bearish and the next I’m bullish. Just have to adapt to the environment and follow the signals as best you can which is what we have been doing. Take your profits and keep your stops tight and we will continue to profit consistently. They’re we’re a lot of stocks moving today but most are just getting squeezed off their bottoms and the charts are ugly, not patterns to play. But with these bullish moves and some consolidation we are going to see some sweet trade set ups in the coming month or so.
2 stocks i couldn’t pass up today and i bought for the Black Service Portfolio:
Small Cap Stock Pick #1
Ticker: ????
After making a huge run in the first bully rally we witnessed this stock went through some profit taking and has basically been consolidating and forming a double bottom pattern since then. Not until today has this stock showen any strong buy/sell signals. In this case. We bought on the breakout of the double bottom consolidation breakout. Strong earnings growth is expected and the next earnings call is on the 28th. I’m thinking this could run to prior resistance around $9 on this breakout as we head into earnings.
Technical Analysis:
Small Cap Stock Pick #2
Ticker: ????
This is my favorite stock chart of the day as earnings have already been released last week which gave way to its first move on volume so we have that bullish sentiment already embedded into the momentum of this stock and it broke out today from its pennant and horizontal resistance on a big spike in volume. Technically we have some resistance at 8 which may be a good spot to lock in some profits as we entered at 7.17 for the Black Service Portfolio . But a move above $8 long term resistance and this could head much higher.
Technical Analysis:
