Saturday, June 02, 2007

Swing trade calls -- June 2, 2007

On the market:

I sense a fundamental change in the collective market mentality in the past 2-3 weeks: the bullish attitude has been solidified to such that the action (buy-on-dip) starts to firmly reflect the attitude. It is also quite clear that there is still quite a long way to go before the bullishness reach a frantic/crazy level, therefore, as a whole, swing short should be avoided. The market is unmistakably bullish, but with the interest rates continue to climb (the 10 yr yield is poised to break the key 5% level), more explosive movement to the upside may not occur before some kind of consolidations. The less-than-impressive up volumes in recent days indicate that big boys are not eager to commit more nor to take profit at this stage. So what do we do for swing trades? Avoid swing short and be patient with swing longs--both entry and exit.

1. NM: L1, entry zone=10.3-10.6, CS=bearish close below EMA10, IDS=just below 10.

2. OI: L1, entry zone=31.8-33.6, CS=very bearish close below EMA10, IDS=just below 31.7.

3. PCU: L1, entry zone=88-92.5, stop just below 87.

4. SGR: L1, entry zone=39.4-40.8, stop when it closes below EMA10 with a bearish candle.

5. USU: L2, entry zone=20.7-21.3, stop when it closes below EMA50 with a bearish candle, IT=24.5.

6. ADBE: L1, entry zone=43-44.2, stop when it closes below EMA50 with a bearish candle or below 42.

6. BIDU: L1, entry zone=134-136, cs=very bearish close below 134, IDS=129.

7. CHRW: L1, entry zone=52-53, IDS=just below 50, CS=bearish close below EMA50, IT=57.

8. CRM: L1, entry zone=44.3-46.5, CS=bearish close below EMA50, IT=50.

9. GOOG: L1, entry zone=486-492 OR when it breaks 515.

10. RACK: L1, entry zone=11.5-12.1, stop just below 11.5, IT=EMA50=13.6, next target around 16.

10. SINA: L1, entry zone=38-38.8, stop if it closes below EMA10 with a bearish candle.

11. TXN: L1, entry zone=34.5-35.5, IT=37, CS just below 34.5, IDS just below EMA10.


Anonymous said...

Hi Man,

Below is my comments on your highlighted stocks.

1. ADBE Stock just made a new high. It is obviously a long candidate. Your entry sounds good to me.

2. CHRW weekly chart, EMA and MACD, not so bullish, but Candle was bullish. Agree to get long around 53.

3. RACK Weekly chart indicaes that there might be a bullish movement in the near future. What we need is that a daily candle close above MA50 to confirm that.

Anonymous said...

4. TXN It is now in the middle and may be good for daytrade.