Hot Pick Of The Day

[alice4321us]

Goog

Thanks for the prompting alice! GOOG sets up as a great long at current levels. Charts and commentary HERE. Long the intraday pivot (current prices as I type) $398.43. r/r is 19 with a 1% risk stop under yesterday's low to target the daily 5 price resistance +19%.

Best to ya.

Thanks for the chart Spike. GOOG did drop below yesterday's low, whats the play here now.

Lye, thanks for your reply as well. Any update on your TA here?

[spikefader]

Thanks for the chart Spike. GOOG did drop below yesterday's low, whats the play here now.

Sure.

Yep, took the 1% risk and I'd call that a fuzzy C failure, with the bias short while price is below the daily C in the chart I drew up. The big support is on the monthly, and one might stalk a long from that area?

I gotta say, today's broad market action is hardly inspiring for bulls. Makes me wonder whether MSFT earnings news is gonna rock the markets for a few days.... My own Vector is still firmly bearish and I'm swing short anyway.

Good luck all.

[New-born baby]

Ray Long

Looking at the BTU chart, and it seems that Mr. Peabody's Coal Train is all set to leave the station for destinations SOUTH. Yup. Reports earnings on Thursday, and the chart has settled dead on support, forming a very bearish looking descending triangle. Of course, that triangle means nothing until the base line support is busted, but it looks for all the world that she is going to bust. PnF likes BTU to dive down to $42; Dow Theory says "don't kid yourself: $26." Whatever. I sold the calls and bought puts today.

Don't believe me? Look for yourself . . . . .

BTU dived down $5.35 today on very heavy volume. Ray, I wish you could have made this trade with me. Next major support is $42. If that fails--and I don't know yet if it will or not--then $26 for sure. But first things first: looking for a first target of $42.

[RL]

You don't know how much I wish I was on that trade with you

[Lyehopper]

WoW!.... what a call!!!!

Well, BTU (Peabody Coal) reports on Thursday. ACI, (Arch Coal), reports on Friday. Whatever happens to Peabody will carry over onto ACI. Chart says that both will fall down. ACI is the weak sister of the two. Now you could watch the BTU news tomorrow and have a head start on ACI on Friday.

HUUUUGE!!!! call NBB.... Very HUGE indeed!!!!.... I'm impressed dude!!!!

[alice4321us]

NBB is HUGE

HUUUUGE!!!! call NBB.... Very HUGE indeed!!!!.... I'm impressed dude!!!!

Lye, first you beat me to the write up.

NBB, great call BTU and ACI both tanked big time.

[New-born baby]

You still have time . . . .

Lye, first you beat me to the write up.

NBB, great call BTU and ACI both tanked big time.

Lye, Alice, et al:
I think you still have time to make $$ off of both BTU and ACI. BTU won't hit significant support until $42, and ACI is a very weak sister. Last quarter they succeeded in losing money in a very bullish coal pricing market. I think ACI may even fall down to $15 by October. But having said that, I usually take one price target at a time. $29 for ACI.

A simple options play would be to sell the out of the money calls. A $50 or $55 AUG option, or Oct or DEC would be an example of a play you could make.

[New-born baby]

Alv

ALV is looking tired to me. Chart shows a forming descending triangle. Should $52 support bust, then $44 should come back in style rather quickly because there is little price by volume support in between.

On the negative side, the option chain on this stock offers very little protection.

[New-born baby]

Nx

NX is going to be putting up some O's on the chart soon. Very bearish action today suggests that $25 is soon coming back in style. Incredibly, the AUG $35 put costs only $1.65; and you could sell the NOV $35 call for $3.90! Sell one, buy two! Looks like a deal to me

[New-born baby]

Yhoo

YHOO looks pretty weak. $15 target.

The AUG $25 PUT will set you back--are you ready for this?--only $.85! CHEAP! And it looks for all the world to be sitting near $15 before too long. Yeah, it might take 4-8 weeks to taste the $15 marker, but it may go all the way down into the dirt before she quits falling.

The OCT $25 calls sells for $2.20. Sell it. Buy two puts for AUG, or one $25 AUG put and one $25 OCT put at $1.55. For chump change you can be sitting on YHOO.

Look at her! Warning: she's ugly!

[New-born baby]

Jci

JCI: you ought to be all over this one. Head and shoulders pattern with broken neckline today--textbook perfect formation. The shoulders were almost equal height, Lyebaby, with the right shoulder just a touch higher. Huge, towering-type dive down today: $9.97 lopped off the share price. Bear pole says $10 more to come; 2nd target is $54!

Optionable, too. Sports the type of option chain I like to play with: rich. Lots of option choices, with lots of cash available. And don't forget to look into JCI's sister stock HON. Old "Honey" ought to be primed for a similar fall, too.

JCI's OCT $65 calls sells for $8.30; the OCT $70 call sells for $5.20. It could be that you could sell either call and never have to pay them back.

[spikefader]

Yep, great call on BTU NB!

ALV has a diamond shape to the top I think.

Thanks for the charts and ideas dude.

[New-born baby]

Jci

Yep, great call on BTU NB!

ALV has a diamond shape to the top I think.

Thanks for the charts and ideas dude.

Thank you Spike.

Listened to WMAQ radio (access it on the internet at www.670thescore.com this morning, and their program "Stocks and Jocks." Dr. J and Tom Hough were speaking about MSFT, GOOG and YHOO. Neither one can read a chart(!) and they trade accounts professionally simply off the FA. Tom Hough said that YHOO's P/E of 20 was too high still, and looking at the fall in prices, opined that YHOO would continue to descend. Then Dr. J compared GOOG with YHOO. His statement was that as soon as the Street can accurately forecast GooG earnings, GooG chart will look like YHOO's, and the P/E will be similar. MSFT is up on earnings today, but Tom Hough called it a short in that the prices are up only on the announcement of a stock buyback program. MSFT has 12 billion outstanding shares! And although they are buying stock back, they also issued stock options to the big boys to the tune of 1.5 cents PER SHARE. Tom Hough's opinion: after the initial pop, MSFT is coming down.

I have not looked at these charts (except YHOO posted a page earlier). But these guys are good!

[spikefader]

Thank you Spike.

Listened to WMAQ radio (access it on the internet at www.670thescore.com this morning, and their program "Stocks and Jocks." Dr. J and Tom Hough were speaking about MSFT, GOOG and YHOO. Neither one can read a chart(!) and they trade accounts professionally simply off the FA. Tom Hough said that YHOO's P/E of 20 was too high still, and looking at the fall in prices, opined that YHOO would continue to descend. Then Dr. J compared GOOG with YHOO. His statement was that as soon as the Street can accurately forecast GooG earnings, GooG chart will look like YHOO's, and the P/E will be similar. MSFT is up on earnings today, but Tom Hough called it a short in that the prices are up only on the announcement of a stock buyback program. MSFT has 12 billion outstanding shares! And although they are buying stock back, they also issued stock options to the big boys to the tune of 1.5 cents PER SHARE. Tom Hough's opinion: after the initial pop, MSFT is coming down.

I have not looked at these charts (except YHOO posted a page earlier). But these guys are good!

Interesting stuff, thanks New-born!

MSFT is falling as expected. Stop to even and see what the market hands me.

I tell ya; GOOG longs should be a little concerned with the afterhours plunge last night; Yet another fine example of a fuzzy C failure leading to huge volatility. The 1%risk setup I posted about yesterday stopped out and boom, down she goes for a -10% drop. Sure it recovered, but that is slap in the middle of that gap support...the fact that 360 didn't hold whispers some bearishness for a gap fill. Intraday she's rising to the fuzzy C resistance area I posted about HERE and it's probably worth a play given current market conditions....perhaps to target the gap fill. Target is about 12% so I'd be looking for a 1% risk setup. First one I spot is short intraday pivot at 392.44 with stop at 396.40, which is over afterhours price resistance. I think I'll be buying some out of the money puts a couple months out for a low risk bearish play on it.

Good luck today!

[spikefader]

Look at GOOG call options. they are up. Is that an indication of some sort about the earnings tonight. Somebody knows what's gonna happen..

Any thoughts guys.

Ya know alice, you're right! They really spiked up didn't they! I may buy some of these today to target a gap fill. Fuzzy C failure and failure of the gap support 360.00 afterhours whispers lower to me.

Look at the bubble in the put options yesterday. Sumfin's up. Quite a retracement today in price. What do others think about their value here?