Picks
for October 13, 2009
|
STOCK
|
RESISTANCE
|
STOP
|
TARGET
|
|
BRCM
|
$30.31
|
$30.22
|
$33.00
|
|
EBAY
|
$25.14
|
$25.03
|
$28.00
|
|
HERO
|
$ 5.40
|
$ 5.31
|
$ 7.00
|
|
NVDA
|
$14.28
|
$14.17
|
$17.00
|
BRCM RESISTANCE LEVEL - $30.31
BRCM gapped higher on
Monday and proceeded to trade in a range throughout the day. The stock did not give us the move we
expected, but the overall market volume was low due to the Columbus Day
holiday. We are watching BRCM again on
Tuesday and are buyers once the stock breaks through Monday’s high of
$30.31. If BRCM can break resistance, we
expect to see a stronger upside move.
Keep BRCM on your radar for Tuesday.
EBAY RESISTANCE LEVEL - $25.14
EBAY has consolidated the
past two days, after gapping higher last week.
The stock hit a high of $25.14 on its gap day, which is resistance for
the next upside move. We are buyers of
EBAY for this move and expect to see strong volume push the stock higher. EBAY can be a good trading stock, so watch it
closely on Tuesday.
HERO RESISTANCE LEVEL - $5.40
We are watching HERO on
Tuesday, because we see a flag or pennant pattern forming on its daily
chart. This part is a short-term one
over the past three trading days. If you
look at the chart, you will see the range shrinking the past two days. We expect to see a breakout move once the
stock breaks through the range high of $5.40.
There could be good upside potential here, so watch HERO closely on
Tuesday.
NVDA RESISTANCE LEVEL - $14.28
NVDA broke resistance on
Monday, but did not give us the trade we expected. The stock hit a high of $14.28 on Monday,
which is now resistance for Tuesday’s move.
We still like this stock and will continue to watch it on Tuesday. We are buyers once it breaks through
resistance and expect to see a stronger upside move. NVDA will move quickly, so watch it closely
on Tuesday.
STOCKS FROM OCTOBER 12, 2009
|
Stock
|
Buy ($)
|
Sell ($)
|
P/L ($)
|
% Gain
|
|
BRCM
|
$30.13
|
$30.02
|
$(110)
|
(.37)%
|
|
NVAX
|
NT
|
|
|
|
|
NVDA
|
NT
|
|
|
|
|
SNDK
|
NT
|
|
|
|
|
|
|
|
|
|
|
Today
|
|
|
$(110)
|
(.37)%
|
|
Month-to-Date
P/L October 2009
|
|
|
$(60)
|
(.10)%
|
|
|
|
|
|
|
|
Year-to-Date
P/L
|
|
|
$7,470
|
47.63%
|
*Percentages are based on Percent Gained/Lost
per Trade accumulatively
BRCM – BRCM gapped above resistance,
hitting an early high of $30.12. We
bought BRCM when it made new highs after 10am EST.
The stock went two cents through highs and then dropped straight within
2 minutes to stop us out.
NVAX – No trade.
Stock did not break resistance.
NVDA
– This was a judgment call, which is something you have to make as a
trader. NVDA broke resistance right
before 11:30am EST. We did not make this trade because the market
was starting to turn down after not being able to break through its range all
morning long. Also, the overall market
volume was low and since this was close to the lunch hour, the volume was
dropping quickly. You have to look at
the big picture before you make any trade and this was one where we could not
justify entering this trade.
SNDK
– No trade. Stock did not break resistance.
