Technical Pick

Today's market made some significant gains both in up moves and long term trendlines. Even though the market is a bit overbought, more upside is to come shortly. Volume is still key since most bulls are still waiting for some extraordinary news to propel this market out of this bearish phase. Tonight I decided to post a technical pick rather than the usual chart pattern. The stochastic indicator is the only one I consider the most accurate so this is what I will be highlighting tonight. SOLF was a pick I had about a month ago for a stochastic crossover and once again is doing that same move. Buy point is now and may be worth 2 to 4 points or more. Remember the market is still highly volatile.

Double Bottom!

Another interesting day in the markets with bad news signaling inflation. The gap down was eventually filled and the markets lifted nicely. Like I have been saying recently, volatility is here to stay at least for the short term. Tonight's chart is of solar panel maker FSLR. This stock has risen after great earnings reports the past couple of quarters. It's latest report made a nice gap up in the stock's chart and has consolidated nicely for the past week. There's a possible falling wedge that may indicate a breakout to the upside. I also noticed that there's a double bottom that would give this chart a much better chance of working out. Buy point would be now with some resistance at $236. Stop loss would be somewhere around $201 but in this volatile market remember to keep an eye on this and any other stocks you own.

Volatile days

Another day of volatility as I mentioned last night. The markets can't seem to get going just yet. More time is needed before we can get this situation sorted out and have stocks make some nice consolidation. Over time stocks should do some sideways work and hang tight during this bad market days. Tonight I found a stock called PXD. After posting some decent earnings the stock is consolidating nicely and is almost ready to move higher should the market allow it. Buy point is somewhere around $45.30 with an increase in volume. Oil soared just past the $100 mark so keep an eye on some of those oil stocks. Personally I don't like trading those since their price is too closely tied to the price of oil. If oil should drop on news, then most oil stocks follow suit no matter how great the companies may be. The markets are still in neutral territory so upside may come sometime this week.

Holiday Bliss

Nothing new to report today. I've been looking at the market and stocks and couldn't see anything to write home about. After this 3 day weekend it's hard to say where investor confidence will be. The market is currently near neutral levels so I expect it to go either way with more bias to the upside. Some former winners are consolidating nicely and may be getting ready to start a new uptrend. You can be sure this whole subprime mess is not going to go away any time soon so I expect some volatility to stay at least for the next couple of weeks. Cash and some quick plays would be best right now at least until all the bad news get out of the way. This election year is not going to help this market either since this correction should have gone without a glitch but as we have seen that's not happening. The current administration is trying to keep it's political party in the White House so they're trying to save the market. That's getting in the way of a healthy correction that would be expected at the end of a bull market. I'm worried that shortly after the new president gets elected, there would be no reason to keep this market afloat anymore. On the other hand, since this correction got going last summer I actually expect this market to turn bullish at some point this year. When that happens nobody knows but I will let you my readers know when I start seeing the signs of that happening.

Solar panel makers, fertilizer makers, oil companies, oil drillers, and home builders are the groups you should have on your watchlist right now. Those are the stocks that will probably go first should the market soar.

Thursday's Pick

The markets are having very good days lately but are getting close to both oversold levels and heavy resistance levels so caution is warrated now. My recent selections WFR, CF, and VMW are moving very well. ATW is at my recent buy point and I expect it to move forward as early as tomorrow. Today's pick is SOLF which I mentioned a couple of days ago but was not ready then. After having consolidated enough time, I think it's ready to move higher this time around. Buy point on this selection would be somewhere north of $19 on heavy volume. This box should help it move higher specially since FSLR posted very good profits. That stock will probably be a pick soon but I would rather wait for it to consolidate and form some sort of a base or pattern before I recommend it. Remember the markets will close this coming Monday and that may have some selling pressure this Friday since many traders don't like to hold on to positions over long weekends.

Still Waiting

The markets moved up nicely today after being quite a bit down the first hour of trading. Traditional wisdom would tell you that it's a sign of a bull market when the markets start down and end up. We know that we're not in a bull market yet so caution is still warranted. Last night's picks CF and ATW are almost there so be ready when they go. If you're adventurous you could buy now before their move but that would be premature and failure could always happen. BP is also a good pick I would recommend buying above $65 on good volume. TBSI and DRYS are also good picks I would buy right now but just some shares until the markets improve. Feltilizer, solar and dry bulk shipping are the sectors I would keep an eye on for now. FSLR, SPWR and SOLF have very similar looking charts that I would consider having a small position on. The markets are still neutral to a bit overbought so more upside could be here soon.

Monday's Late Selections

The market's are still trying to figure out where they want to go. As of right now I would say we're in somewhat neutral territory but I have seen some serious buying lately. Of course that doesn't mean that we can't see some more serious selling. Hopefully things will work out for the better. Tonight I decided to add 2 charts rather than the usual 1. CF industries has posted superb earnings and that group is benefiting from the big demand in the agriculture sector. As you can see in the chart, the stock has been consolidating nicely and is ready to move higher. Buy point is above $112 on higher than average volume. ATW too had good earnings and the stock may try to run higher from here. Buy point on ATW would be above $90 on good volume. Remember that the markets will dictate if this 2 patterns will work out or not.