MTM's Charts to watch

[skiracer]

Perhaps a bad choice of words on my part. Here is something worth considering in defense of a continuing uptrend or rally.






I like to be able to substantiate what I say. I took your statement of the fluff rally as there was no strength left in or behind this recent uptrend. My own feelings are much more in line with what Murphy states an in his charts on what is happening with the sector rotation and the money behind it.

Didn't mean to upset you but if you're going to post your opinions then you must be prepared to take critisism and defend your position with something substantial other than just how you feel about it. There are people out there who take these statements to heart. Good luck with your trading and always glad to see someone beat the markets.

[mtm]

Those are all valid points and I am fully aware of the scenarios you provided. That does not verify a we are goinging higher though. He did a great job pointing out all the pro's of the current rally, but failed to point out many of the cons that many traders forget about. Don't get me wrong either, Murphy is one of the best and I have learned alot from his books. It was just an oopinion and only time will tell.

The big thing that bothers me about this rally is their is no broad based participation. Meaning it was caused by short-term player and short covering. My trading style only cares about what the next 5 days has to offer anyways.

[mtm]

You did'nt offend me either, its just hard to explain all of the conflicting scenarios for the stock market without going into a long drawn out dialog about economics, statistics and so on.

[RL]

It's so much easier to throw darts.

[mtm]

LOL. I am not that good at darts, but you do have a point for some.

[mtm]

Ok, we have now closed the long SYMC.

[mtm]

AIRT

Long Play

Broke above down trendline of a descending traingle and based for 5 days. Last friday it pushed upwards with a wide range bar on volume. Upside targets of 19.46 and 22.50. Two possible stops of 16.80 or 15.70 depending on you Risk/Reward ratio.

[mtm]

KYPH

Long Play


Kyphon has been basing on a weekly chart for about 9 months now. Last Friday KYPH Gaped up and ran strong into the close on 4X it's average volume. Although KYPH has'nt broken out yet we want to watch the 2 price areas and set alerts for them. Price alerts are 29.70 and 31.24. A break above these levels would give us a long target of 36.84 with a stop of 27.00. This play would require holding longer than a normal swing trade (3-5 days) time frame.

[mtm]

CMCSK

Long Play

Comcast has tested its support area 4 time in the last 3 months bouncing everytime. CMCSK has slight broken above its recent down trendline giving it a better upward bias for the longs. Longside targets would be 32.18, 32.51, 33.27 and 34.16. A sell stop would be 30.45.



WEEKLY CHART:

[mtm]

ADSK

Short Play

Bearish engulfing candle right at the resistance of the $37 dollar area. Dowside target of 34.10 to 33.10 with a stop @ 37.50.

[mtm]

ESRX

Short Play

ESRX has had weakening RSI, fridays close resulted in a bearish engulfing along with experiencing an Island top (bearish reversal). Downside targets of 91.50, 90.79, 90.40 and 89.29. A protective stop placed above 95.50.

[mtm]

Here are some others to look at too.

LONGS: CARS, HIBB, DRCT, TLCV, OPSW


SHORTS:PTMK

[New-born baby]

Float

AIRT

Long Play

Broke above down trendline of a descending traingle and based for 5 days. Last friday it pushed upwards with a wide range bar on volume. Upside targets of 19.46 and 22.50. Two possible stops of 16.80 or 15.70 depending on you Risk/Reward ratio.

AIRT's float is a measely 2 million shares. This thing could rocket. . . .

[New-born baby]

A note of caution

AIRT

Long Play

Broke above down trendline of a descending traingle and based for 5 days. Last friday it pushed upwards with a wide range bar on volume. Upside targets of 19.46 and 22.50. Two possible stops of 16.80 or 15.70 depending on you Risk/Reward ratio.

Nice charts, MTM!
Now a note of caution with AIRT. According to "TA of Stock Trends", (7th edition), a descending triangle may break out to the upside, but are almost always bearish in the near term. In other words, it may break upwards, but not for long. This pattern, according to Edwards and Magee, is virtually fool-proof to the downside.

Therefore, longs might be cautious, and take profits when/if the opportunity arises.

Love these charts! Thank you, and keep 'em coming!

[mtm]

Anything is possible.