Stock Trading To Go » Setups

Google’s Stock Tumbles Under $270, Our Pick Yields 17%

Blain Reinkensmeyer — Thu, 20 Nov 2008 16:15:44 +0000

Last week we posted that Google was set for a fall under $300 a share and put a target price of $275 using simple technical analysis. In Live trading Google is sitting at $269, yielding a 17% profit in less than two weeks.

The big reason a trade like this works is because of the overall direction of the market, and that is down. Never fight the trend, and in this market any long positions even in the “big guns” like Apple or First Solar have just gotten killed.

We did not participate in our own Google pick. The reason is we decided back in August that the market was no place for up and coming financial bloggers. Lucky for us we have been over 90% cash since that day and have enjoyed a fairly peaceful last three months.

Let’s take a look at this chart of Google, and make sure to check out the original chart of Google as well to compare the two.

(New Investors – Read Stock Charts, Understanding the Basics and browse the technical analysis archives for further stock education.)

During the course of this fall the NASDAQ Composite fell a staggering 17%. This means we could have shorted nearly any stock and made a profit.

With discipline Google should be covered at this point for a 17% profit. Even though the lower lows signal it should continue to move down we have already succeeded. The market can take back what it gives out very quickly, so always stick with a very disciplined market strategy.

Google Sets Up For Fall Below $300

Blain Reinkensmeyer — Mon, 10 Nov 2008 17:07:32 +0000

This morning shares of Google (GOOG) fell through key short term support at $325 a share. The stock has been trading within a 50 point range for the last several weeks and a close today under support could signal the start of a fresh 15% move lower.

All short term investors should be closely watching two key elements with Google’s stock today which will help to affirm direction: volume and the closing price.

High above average volume (distribution) gives the move credibility as it would signal institutions are involved. And for bears a close right near session lows today increases odds that the move will continue tomorrow.

To estimate where Google might receive support next simply take the average range top to bottom of the current horizontal channel (around 50 points) and subtract that from the key support point of $325. This leaves us with a target price for Google of about $275 a share.

Google’s stock chart below (6 month, daily):

The sustainability of any move up or down short term weighs heavily on the overall market. In the current bear market odds favor shares selling to the downside. Thus playing a stock like Google off a technical breakdown can result in quick profits for the smart investor.

New Investors – Read Stock Charts, Understanding the Basics and browse the technical analysis archives for further stock education.

8 Surprise Stocks at 52 Week Highs

Blain Reinkensmeyer — Mon, 03 Nov 2008 04:59:04 +0000

During a regular bull market this list of stocks at 52 week highs would be much larger on any given day but with tough times comes tough trading. Investors looking for short term plays need to add these stocks to their close watch lists.

One of the top stocks on this list should be to no surprise 99 Cent Only Stores (NDN). Other industries represented include Air transportation (new trend with low fuel prices), Medical, Utility, amongst others.

A surprise appearance is Petmed Express (PETS) which sells prescription medications and other health products for dogs, cats, etc. Even with a tough economy consumers are still taking care of their pets it seems.

We recommend new investors read Stock Charts, Understanding the Basics and browse the technical analysis archives before viewing the charts below.

All charts are eight month daily views and are as of closing prices last Friday October 31st.

Charts:

Ninety-Nine Cent Stores (NDN)
LHC Group (LHCG)
Almost Family (AFAM)
Petmed Express (PETS)
Aerovironment (AVAV)
Allegiant Travel Company (ALGT)
Laclede Group (LG)
Cubist Pharmaceuticals (CBST)

Charts numbered (click to view full chart):

1. 2. 3.

4. 5. 6.

7. 8.

12 Stocks Holding Key Multi-Year Support – MA, RIMM, MON…

Blain Reinkensmeyer — Mon, 27 Oct 2008 04:21:32 +0000

Bear markets are known to bottom about 60% through a standard recession. If investors wait until economic data supports a turn around they typically have already missed a substantial rally. By watching stocks that hold key multi-year support levels investors can get an upper hand buying potential new market leaders early and with confidence.

Below are 12 stock charts at or near multi-year support levels from back as far as 2005. These are considered technical setups and should only be used as a watchlist reference for moving forward. A stock that holds multi-year support is more likely to be a leader when the market eventually turns.

New Investors – Read Stock Charts, Understanding the Basics and browse the technical analysis archives before viewing the charts below. Also take a look at the free stock education page.

Charts:

Mastercard (MA)
Research in Motion (RIMM)
Monsanto (MON)
Hewlett-Packard (HPQ)
Helmerich & Payne (HP)
Massey (MEE)
Canadian Solar (CSIQ)
Dryships (DRYS)
Continental Resources (CLR)
Sociedad Quimica Y Minera (SQM)
SunPower (SPWRA)
Fuel Systems Solutions (FSYS)

Charts numbered (click to view full chart):

1. 2. 3.

4. 5. 6.

7. 8. 9.

10. 11. 12.

12 Bearish Continuation Patterns – FSLR, BIDU, AAPL, etc.

Blain Reinkensmeyer — Thu, 23 Oct 2008 23:07:56 +0000

The market rallied late today to close in the green (less the NASDAQ -.73%) and is still barely holding onto dear life as it tries to keep its support intact. This highly volatile sideways action the last two weeks has in turn created some hard to miss bear flags.

Most of these technical setups are continuation patterns and thus should break to the downside in favor of the bears (unless we see another 10% rally of course). Most of these breaks should trigger another sell off of 5 – 10% atleast from current levels.

New Readers – Read Stock Charts, Understanding the Basics and browse the technical analysis archives.

Charts:

First Solar (FSLR)
Baidu.com (BIDU)
Google (GOOG)
Mosaic (MOS)
Apple (AAPL)
LDK Solar (LDK)
Yahoo (YHOO)
Massey Energy (MEE)
NYSE Euronext (NYX)
Dryships (DRYS)
Alpha Natural Resources (ANR)
James River Coal (JRCC)

Charts numbered (click to view full chart):

1. 2. 3.

4. 5. 6.

7. 8. 9.

10. 11. 12.

Medical Product Stock Setups

Blain Reinkensmeyer — Wed, 22 Oct 2008 01:13:24 +0000

What industry group has recently emerged from the fog? None other than Medical Products. These stocks have been taken interest by institutional investors, and while I am not as inclined to say a new trend is emerging, there are some great stocks to add to a watch list.

Four stocks to feature right now, take a good look.

Thoratec Laboratories (THOR). Trending sideways between $27 and $29 would be good for THOR at this point. No need to rush art.

CryoLife (CRY). The stock has nearly doubled since bottoming at $7.60 earlier this month. Looks like $15 will stand as resistance for now and rightfully so after a runup like that..

NuVasive (NUVA). Just one to watch, some noticeable accumulation in the last few weeks but as bullish as I want to be these continuation patterns typically lead to lower prices in the end.

ICU Medical (ICUI). Give this stock some time and it may setup a very nice bull flag. Two of the last three sessions have been heavy accumulation days, beautiful.

These are all setups, not buy signals. In this market there is no point in buying anything until you get a great setup. Cash is still king.