OTA's Picks for Momentum

                            

Picks for October 21, 2009

 

 

 

 

AKAM RESISTANCE LEVEL - $22.41

 

AKAM has been trading in a range since gapping higher last week.  The stock is setting up for a breakout move that should happen very soon.  We are buyers of AKAM once it breaks through $22.41, which is the high of this range.  If AKAM can break through this high, we should see strong volume push it higher.  Keep a close eye on AKAM for Wednesday.

 

 

AMKR RESISTANCE LEVEL - $7.38

 

AMKR is trying to make a move off support, and could breakout on Wednesday.  The stock is sitting on its 10 day moving average and wants to move higher.  We are buyers of AMKR once it breaks through Tuesday’s three-day range high of $7.38.  You want to keep a close eye on AMKR for this upside move.

 

 

PALM RESISTANCE LEVEL - $15.85

                                                          

PALM has been selling off the past few days, but might have found short-term support.  The stock tried to break down on Tuesday, but buyers came in to drive the stock slightly higher on the day.  We are watching PALM closely on Wednesday and are buyers once the stock breaks through Tuesday’s high of $15.85.  If the stock can break through this high, we should see a good reversal move.  PALM can move quickly, so watch it closely on Wednesday.

 

 

YHOO RESISTANCE LEVEL - $17.94

 

YHOO will gap higher on Wednesday, as the stock is trading up after hours on Tuesday.  YHOO reported strong earnings, which is driving the stock higher after the close on Tuesday.  We are watching YHOO closely and are buyers once the stock breaks through 2009 highs of $17.94.  There is a chance the stock will gap above or trade through this number during the first 20 minutes of the morning.  If this occurs, use our trading rules before entering this trade.

 

 

STOCKS FROM OCTOBER 20, 2009

*Percentages are based on Percent Gained/Lost per Trade accumulatively

 

DRYS – No trade.  We bought DRYS on its breakout and watched the stock move up to $7.31.  The market started to drop and the stock started to pullback, so we sold for a quick profit.

 

ERTS – No trade.  Stock did not break resistance.

 

INTC – No trade.  This was a tough call because the stock did break resistance by one penny, which is where we would have entered this trade.  The main reason we did not make this trade was the stock ran from $20.30 up to resistance.  For INTC, that is a huge move and there was no way the stock was going to move much higher.  Plus, the market was negative during the move and did tick positive for a second, before going back down.  We have talked about not buying a stock that has a big move before it breaks resistance, and this was one of those situations.  INTC is not known for making huge moves and $.25+ is as good at it normally gets for INTC.  I am sure most of you probably thought we would make this trade, but there are times you have to look at the move and not make the trade.  This was one of those times.

 

INTU – No trade.  Stock did not break resistance.