Picks
for October 20, 2009
|
STOCK
|
RESISTANCE
|
STOP
|
TARGET
|
|
DRYS
|
$ 7.16
|
$ 7.06
|
$ 8.00
|
|
ERTS
|
$21.05
|
$20.94
|
$24.00
|
|
INTC
|
$20.57
|
$20.47
|
$23.00
|
|
INTU
|
$30.02
|
$29.92
|
$32.00
|
DRYS RESISTANCE LEVEL - $7.16
DRYS traded slightly higher
on Monday, after the stock bounced off its 10 day moving average. We are watching DRYS on Tuesday, expecting a
bigger upside move. Resistance for this
move is $7.16, which reflects Monday’s high of the day. You need to watch DRYS very closely because
it will move quickly once it gets near resistance.
ERTS RESISTANCE LEVEL - $21.05
ERTS is setting up for a
breakout move and it could occur on Tuesday.
The stock pulled back last week, but found support and is bouncing back
towards resistance highs. The high of
this range is $21.05, which is where we are looking to enter this trade. ERTS can be volatile, so watch it closely and
keep a close eye on the stock for Tuesday.
INTC RESISTANCE LEVEL - $20.57
INTC found support on
Monday when the stock bounced off its 10 day moving average. This looks to be where the stock turns and
moves back to highs, which is why we are watching it on Tuesday. We are buyers of INTC once it breaks through
Friday’s high of $20.57. If the stock
does break resistance, this will be a two-bar reversal, which is bullish for a
short-term move. Keep INTC on your radar
for Tuesday.
INTU RESISTANCE LEVEL - $30.02
INTU has been trading in a
tight range the past four trading days, but could make a move soon. The stock tried to breakout on Monday, but
was not able to follow through. We like
this formation on the daily chart and expect to see a bigger move soon. We are buyers of INTU once it breaks through
Monday’s high of $30.02 and expect to see an increase in volume to push the
stock higher. Keep a very close eye on
INTU for Tuesday’s trading day.
STOCKS FROM OCTOBER 19, 2009
|
Stock
|
Buy ($)
|
Sell ($)
|
P/L ($)
|
% Gain
|
|
ARNA
|
NT
|
|
|
|
|
CREE
|
$40.65
|
$40.83
|
$180
|
.44%
|
|
SBUX
|
$20.74
|
$20.88
|
$140
|
.68%
|
|
YHOO
|
$16.90
|
$16.98
|
$80
|
.47%
|
|
|
|
|
|
|
|
Today
|
|
|
$400
|
1.59%
|
|
Month-to-Date
P/L October 2009
|
|
|
$440
|
2.08%
|
|
|
|
|
|
|
|
Year-to-Date
P/L
|
|
|
$7,970
|
49.81%
|
*Percentages are based on Percent Gained/Lost
per Trade accumulatively
ARNA – No trade. Stock did not break resistance.
CREE – CREE broke resistance early in the morning, hitting
a high of $40.64. This high became
resistance for the next upside move, which happened around 11:15am EST. We bought the stock during this move and had
to sit through a bit of pain as it ran up to $40.72 and pull right back down to
$40.62. We held on and watched the stock
move up to $40.87, where the momentum stalled for a bit. We took our profit and
sold at $40.83. Normally we might have
held half of our position, but the stock was trading in a wide range and we did
not want to end up with a losing trade.
SBUX
– We bought SBUX on its breakout and sat for close to 15 minutes as the stock
moved higher. The stock stalled at
$20.91 and we sold for a profit when it broke below to $20.88.
YHOO
– We bought YHOO on its breakout and watched the stock move up to $17.00. The momentum seemed to stall here, so we sold
at $16.98 for a small profit.
