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Thursday, January 31, 2008 

Trade Ideas for Friday - BIDU, RFMD, CNXT, ADCT

Chart courtesy of stockcharts

ADCT - The stock should pause around its resistance of $15 after recent rally in share price, however chart is now more Bullish than was before. The recent action in ADCT is very promising. Last week the stock aggressively moved off its lows of $12.63 to rally nearly to $15 on respectable volume, so keep an eye for a possible breakout over $15 too.

Chart courtesy of stockcharts

CNXT looks like it is getting ready to move. The stock broke through its 20-day moving average on today session, this was the first signal that I was looking for since a while. Looking at the daily chart, Conexant looks very good here, especially if market attempts a rally again.

Chart courtesy of stockcharts

RFMD is a stock to watch closely tomorrow. Company announced that its Board of Directors has authorized the repurchase of up to $150 million of its outstanding common stock over the next 24 months. On the other hand company also reported its earnings, RF Micro Devices swung to a loss in its fiscal third quarter, and said results in the current quarter will lower as excess inventory of cell phone chips weigh the company down. A mixed bag. Techinally, stock bounced back from recent lows, and chart is now showing some signals of improvement through some indicators, like MACD and RSI. I like the way the stock bounced back from the share consolidation activity, and it may be time to believe in stock again. I like the repurchase program, especially considering the actual market capitalization of stock. Wait for tomorrow reaction.

Chart courtesy of stockcharts

BIDU shares surged today gaining nearly 8% to $279.95. Stock has refused to go down in $250 area. By looking at the chart, you can see that the stock has found a strong support level around the $248-250 range, on its 200 day moving average. So, after today rally, It looks like bidu has found some buyers to test its downtrend at line around $310 as is mentioned in the chart.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

That's All. Have a great evening !!!

AC

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Wednesday, January 30, 2008 

Rambus shares spiked on the news

Chart courtesy of stockcharts

Rambus – Early in the morning I was surprised with bombastic news for RMBS. According to Bloomberg, Rambus the designer of chips of chips for Sony Corp's Playstation video game console, might collect royalties of as much as $10 bln, six times its market value, by winning a seven year fight with Hynix Semiconductor. After claiming the world's second largest memory chip maker infringed on patents it owned, Rambus won a $133.4 mln award in 2006. To collect, it must now win a trial next month over the South Korean manufacturer's claim that the Los Altos, California-based company illegally used information obtained at industry meetings in the 90s to get the patents. WOW this is huge men…..I’m now in, prepared for any kind of situation. This could be a money machine $$$$. Technically stock is now in a Bullish mode, stock price is above 20,50 and 200 daily moving average, also MACD back again above 0 indicating a Bullish market.High relative volume during this movement is another bullish indication that the stock will continue higher.

Chart courtesy of stockcharts

Keep an eye on CHIC to see if tomorrow stock will confirm intraday breakout.

Chart courtesy of stockcharts

ICO - The stock is approaching again the $6.11 level which typically acts as resistance, so keep an eye on her for a possible breakout.

Chart courtesy of stockcharts

Looking at above chart, it shows that RIMM is in a downtrend that began in November. The key point of this analyze is to show that Research in motion is moving in a clear downward channel. Well, when this happen, there are two ways to play such a pattern. First, you can basically short the stock for the period of the pattern. Second, you can trade aggressively shorting when the stock reaches the top of the channel and buying when it reaches the lower bound. So, I think that both options can work fine as long as you pay attention, however you should be very attention for a possible break of the trend. So, looking at RIMM, stock has found a nice support level around $90, and is gaining some strength to move up according to the indicators, like MACD and RSI. The MACD is showing a positive divergence, after which the MACD made a bullish crossover. So, if you are shorting this stock since awhile, pay attention to these factors.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

That's All. Have a great evening !!!

AC

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Tuesday, January 29, 2008 

Technically Bearish but I’m not yet well convinced

Stock markets have been in full retreat this year, with the major indexes down more than 10 percent in January. Many people have being talking on the floors of a possible strong Bear Market ahead, but I’m not yet convinced about that. Honestly speaking I think we’ve started correction more conservative than was before, after recent years of gains and due to some worries related with the credit crunch, but in just one month we have lost all gains of 2007 and 2006, extremely exaggerated and a rebound from the current levels is now very likely. Over the last years of nice and strong gains in some markets, investors have been driven by greed, but we're now seeing investors being driven by many risks on their minds associated to fears of US recession, and that can make them irrational, like we saw last week. Technically we’re in a Bear Market in some Indices, no doubt about that, but it seems too early to decide to put all my money on the short side, I have many doubts to be clarified before increase my position. We’re seeing a strong intervention by FED in the last days to stop a possible recession, and the aggressive interest-rate cuts by the Federal Reserve could help to stabilize the economy and support the stressed banking sector. In addition the a $145 billion tax-stimulus plan offered by President Bush late last week. The subprime crisis has led to a credit crunch in the United States and the possibility of a recession in the U.S. which could affect the entire world. It is important to keep an eye on what is happening in America and analyze carefully all macro economic reports. So, the message that I try to pass through, is to hold your nerve and to take the opportunities that will certainly arise on bad days to pick up shares standing on far better ratings than have been available for some time, there are now many cases like that in the stock market. Don't be hasty, the opportunities are happening.

Chart courtesy of stockcharts

RF Micro Devices shares caught my attention since the last sell-off occurred early in this month. Stock is currently 50% cheaper compared to December prices, trading with a PE of 6, very low for a technology company. Current prices are very attractive and I’m currently increasing a position in this stock at these levels, without fear, anything becomes possible when stocks reach these levels of oversold. Honestly speaking, chart is printing a weakness picture for a possible fast rebound, but the $4.30 level should be my target for the next month, depending of course of the earnings report that will be out on 31st of January. The main reason to have entered long in this stock was Nokia results which are one of the most important customers of RFMD. So, if you like this company and are accompanying its model business, be patience because a turnaround in share price should occur soon.

Chart courtesy of stockcharts

FSLR - Broke symmetrical triangle on volume. Looking for the confirmation tommorrow.

Chart courtesy of stockcharts

Early this month CNXT made a bottom around $0.56. The stock retested this level a few days ago, which leaves a double bottom pattern on the chart above. The MACD is showing a positive divergence, after which the MACD made a bullish crossover. Both the RSI and the Stochastics are now rising out of the oversold levels. So, keep an eye on CNXT for a possible breakout over its resistance at $0.68 ( 20 dma ).

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

That's All. Have a great evening !!!

AC

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Monday, January 28, 2008 

Trade Idea for Tuesday - GOOG, MEDX , FSLR

Chart courtesy of stockcharts

GOOG - The stock closed below its 200-day moving average of $570. The next level of interest to watch on the downside is recent support around $550. Looking at the daily chart, stock is trading below major moving averages. In addition MACD is below 0 and RSI below 50 showing the stock is in bear market. The only positive indicator is KD, where K line is on top of D line which could mean that the selling pressure is decreasing.

Chart courtesy of stockcharts

FSLR - First Solar ended the session with a strong gain, + $5.72 per share to $177. This stock has formed a symmetrical triangle pattern in the chart above. Theory is, when price breaks outside of the pattern and if accompanied by increasing volume, there is a high probability that the future price will trend in the direction of the breakout. Keep an eye on her, because the breakout will occur soon.

Chart courtesy of stockcharts

MEDX - Medatex has been trading in a downtrend channel over the last 6 months. In my point of view, there is no need to rush out to buy Medarex shares. Stock needs to break out and close above the $10 neckline resistance point, on higher than average volume.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

That's All. Have a great evening !!!

AC

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Saturday, January 26, 2008 

Stocks to watch on Monday - PMCS, Citigroup, Goldman Sachs, CPHD, LDK,

Chart courtesy of stockcharts

Goldman Sachs - The previous support level at $200 for GS stock is now its resistance level. Will the resistance be broken next week ? Maybe.......depending of markets mood. The technical daily chart shows weakness as the stock is trading below major moving averages. In addition MACD is below 0 showing the stock is in bear market. One possible positive indicator is KD where K line still on top over D line. If the stock can go up a few more days it will be back to bull market. So, stay tuned on her for a possible breakout over $200.

Chart courtesy of stockcharts

LDK - Stock has a big resistance range at $40-$40.50, which is where we need it to break to make a big move. I will continue to watch the stock on Monday.

Chart courtesy of stockcharts

Stock has risen strongly since November, and it has formed a nice uptrend channel. Currently share price is in the middle of the channel. Support is at $29 and resistance at $33.36. A break below the channel at $29 will be very negative but looks like an unlikely situation, so I expect prices to continue rising.

Chart courtesy of stockcharts

Currently Citigroup is testing the downtrend line from early October but did not get through. Entry long would be on the day it blows through its downtrend line on heavy volume. A short position here has a low risk with a stop above downtrend line.

Chart courtesy of stockcharts

PMCS - The stock found resistance at $5.70 for the third time this month, closing near its lows for the day. A test of previous lows at $4.61, is now an open scenario.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

That's All. Have a nice weekend !!!

AC

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Thursday, January 24, 2008 

Stocks to watch tomorrow : BUCY, GOOG, FSLR, CNXT,

Chart courtesy of stockcharts

CNXT Beats Street Estimates, stock surges in After-Hours Trading. I’m looking at a possible double bottom reversal on CNXT stock chart. I know that it is too early to say for certain but looking at the chart above is very likely. One positive note is that MACD is on top of 0 and K line is about to crossed on top over D line again. Let's keep an eye on her.

Chart courtesy of stockcharts

Looking at the daily chart, First Solar looks very good here, especially if market attempts a rally, a possible breakout over $180 is very likely. Wait for a close above this mark to enter long.

Chart courtesy of stockcharts

Today GOOG stock crossed the 200-day moving average to the upside, key level to watch tomorrow. One possible positive indicator that chart shows is KD where K line seems to be ready to rise above D line which could mean rebound. Keep an on Google tomorrow. Major resistance is now at $622.

Chart courtesy of stockcharts

BUCY shares have found a nice support around its 200 dma. The break of the white line area at $85 with heavy volume should be the next buy point on BUCY. Keep an eye on her.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical example.

That's All. Have a great evening !!!

AC

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Stocks in Focus in the afternoon

Take a look at some stocks that are showing good and poor performance today:

Most actives : XLF , C , IWM , MSFT , MOT , INTC , AAPL

Gainers : MBRK , CKEC , FFHL , NVEC , FFIV

Losers : MRCY , AAII , OVRL , ENCO , SCA , CNAF

Macro Economic news :

- Initial Jobless Claims for this week fell to 301K versus estimates of 320K and 302K the prior week.
- Continuing Claims fell to 2672K versus estimates of 2720K and 2747K prior.
- Existing Home Sales for December fell to 4.89M versus estimates of 4.95M and 5.0M prior.

Buy / Sell Recommendations :

NNDS - Analysts at RBC Capital Markets upgrade NDS Group to "top pick" from "outperform".

CEPH - Analysts at Soleil upgrade Cephalon from to "buy" "hold".

WDC - Analysts at Deutsche Bank Securities upgrade Western Digital to "buy" from "hold".

THQI - Analysts at Kaufman Bros downgrade to "hold" from "buy".

GOOG - Analysts at Stanford Research downgrade Google to "hold" from "buy".

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.

AC

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Wednesday, January 23, 2008 

Stock to watch Thursday - RIMM, TXN, RFMD, XMSR and SIRI

Hello Friends,

I am back from my short break that eased some of my stress and tension of the last trading days. Well, today I will start by analyze the stocks in spotlight in today session, like TXN, XMSR and RFMD.

Chart courtesy of stockcharts

This stock is sitting right around its 200 daily moving average. This stock has some support around the $82 range. Keep an eye on RIMM for a possible breakout over $91.

Chart courtesy of stockcharts

XMSR showed up on a momentum scan and it looks like it wants to push higher after all this consolidation to break through its downtrend line. This move up could be supported by the possibility merger between XMSR-SIRI that has been since a long time discussed, but that should be approved by DoJ and FCC soon. MACD fast line just crossed on top over Slow line again, showing that a possible rally is about to begin, however wait for a confirmation. Stay tuned on XMSR and SIRI.

Chart courtesy of stockcharts

On Tuesday after market close, Texas Instruments announced its Q4 results. Company said that its fourth-quarter profits rose 13 percent and sales reversed a yearlong decline. The company posted net income of $756 million, or 54 cents per share, including a penny per share from a tax gain in the fourth quarter. That compared with $668 million, or 45 cents per share, a year earlier. Looking at the daily chart, stock has broken its downtrend line finally, that has been in place since mid December. Let's see if it could have a follow through tomorrow. Major resistance is now at $30.65.

Chart courtesy of stockcharts

RF Micro Devices shares caught my attention in the last trading sessions. Stock took a big drop since December levels, and is presently trading at levels very lows. It's hard to believe, but share price is now 50% cheaper than was in December and trading in extreme oversold conditions. Anything becomes possible when you reach these levels of oversold, you can see a tremendous spike in stock price or just continue seeing this movement to the downside. I would keep a close eye on the stock to see whether it bounces from this level. If it starts to move above $3 with strong volume, that will be an indication of a bounce. Keep RFMD in your watchlist.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations. The charts provided here are not meant for investment purposes and only serve as technical examples.

That's All. Have a nice evening !!!

AC

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Tuesday, January 22, 2008 

Be patient and keep calm

Dear friends,

Unfortunately, today I will not be able to put here trade Ideas for tomorrow, because I'm in a business trip and I don't have enough time to analyse carefully stocks, but I promise that tomorrow as usual I will back again with more tips. However, I would like to use this opportunity to pass a message of calm to everyone that have long positions on stocks. We're just living a panic moment in equities that is near the end. In my honest opinion, investors should use the recent tumble in stocks as a buying opportunity, the fall has gone too far. Good luck to all and see you tomorrow !!!!

See you tomorrow

AC

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Sunday, January 20, 2008 

Stock to watch next week - RIMM, GOOG , CNXT, ADCT, AUXL, JASO

Another trading week has gone and more bad numbers investors have to record. Investors, who have started the year looking for a rebound, have been strongly punished again with the continuation of the declines in the share prices. The uncertainties behind the credit market, macro economic numbers and the earnings report from the big companies like Intel, have brought more reasons for the table to think in a recession scenario in the months to come. So, the question that I would like to put here for you folks is? Will be next week the start of the promised rebound or will be another stressfull week where Bears will completely control the market again? Please send me your tips to share with the others, who are always looking for some orientation to make the right choices in the market. Enjoy your weekend and for some hours forget the rest !!!

Chart courtesy of stockcharts

JASO appeared to be consolidating at these levels after the highs in December, but when the short-term downtrend broke the long-term uptrend, JASO gaves the first sell signal. If support is broken at $55 during next week, then expect a move to $50. Within this volatile enviroment It's better to stay on the sideline now until the buy or sell signal is more clear.

Chart courtesy of stockcharts

AUXL uptrend is trying to break resistance at the $31.25 level. If resistance is broken, then there is no resistance above. AUXL has limited downside risk with support at the $28.35 level.

Chart courtesy of stockcharts

In the last trading sessions, the stock found resistance at around $14.48 ( 20 dma ) and declined. This is usually a negative signal. The only positive sign is MACD which shows the stock may be on a bounce back rally. Wait for the confirmation. Buy point will be when the price breaks $14.48 mark on heavy volume.

Chart courtesy of stockcharts

CNXT established a bottom around $0.57. The recent spike upward has broken the short-term downtrend at $0.65. If CNXT breaks resistance at $0.75 ( 20 dma ), then it becomes a buy. Indicators starting to turn up here, and the fast line crossed over the slow line over this week. Stay tuned on her. Earnings report on Thursday.

Chart courtesy of stockcharts

Google broke below support or $622 in a big way over this week, so now $622 becomes resistance. With today's relatively high volume suggests around $600 the possibility of an upside is likely.

Chart courtesy of stockcharts

RIMM - Looking at the daily chart above stock has major support at $85, but also strong resistance at $82.10 on its 200 day moving average. Chart also shows weak sign as the stock is below both 13 day and 50 dma with MACD well below 0. However KD shows possible rally as K line is now a bit on top of D line.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

That's All. Have a nice weekend !!!

AC

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Friday, January 18, 2008 

Trade Ideas for Friday - GOOG, APOL ,CNXT, AMGN, CSUN

Chart courtesy of stockcharts

On the down side in the Solar sector, CSUN is the only stock down 10 days in a row, so I think we should see a bounce at these levels.

Chart courtesy of stockcharts

AMGN - In the daily chart above the stock is forming a possible Inverted Head and Shoulders Pattern. These formations normally indicate a trend reversal, let's see if the stock price will confirm it. The break of $48.45 level with heavy volume should be the next buy point on AMGN.

Chart courtesy of stockcharts

CNXT - MACD Fast line crossed above 0 or MACD Slow Line, producing a Buy signal. Keep an eye on stock for a possible breakout above its 20 dma, now at $0.77.

Chart courtesy of stockcharts

APOL - Once again the stock failed to breakout above the $81 level. It looks like it will test 50-day moving average before move up again. Although the technical chart shows some negative indication as K line is now below of D line, since both 50 day and 200 day moving averages are still going up the stock is still in a bull market.

Chart courtesy of stockcharts

GOOG - The stock broke down through the $622 support line accompanied by volume. If Google doesn’t close tomorrow above this mark, we should see more declines in share price. The stock is very weak as MACD is still deep below 0 and the stock is deep below 50 day moving average.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

That's All. Have a nice evening !!!

AC

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Thursday, January 17, 2008 

What a confusion..........

What a confusion.......... Just an normal day in Wall Street. This particular picture portrays some interesting aspects of rumors and confusion, in indecisive times like we are living now. Brought to you by Nothing Toxic Blog

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Wednesday, January 16, 2008 

Trade Ideas for tomorrow - SOHU,CY,VMW, RFMD

Chart courtesy of stockcharts

I was surprised RFMD didn't see green today. The stock hit a 52 week low today of $3.53. At the moment, the RFMD does not seem to be reacting to the recent upgrade from Deutsche Securities, but my supposition is that it is in part due to the turbulence in overall markets. I would keep a close eye on the stock to see whether it bounces from this level. If it starts to move above $3.64 with strong volume, that will be an indication of a bounce. Keep an eye on her.

Chart courtesy of stockcharts

Looking at the daily chart, VMware has formed a descending triangle pattern over the last few weeks. If the pattern breaks the support at $71, then you should stay away or play on the short side. But if it trends upwards, which I think is the more likely case, according to the MACD and Full Stochastic indicators, then you should obviously go back into the truck for the ride.

Chart courtesy of stockcharts

CY - Major support for stock has been broken. Prices should now retest at least the $23 level.
The short term trend is DOWN.

Chart courtesy of stockcharts

SOHU - The stock broke below its long term support trendline at $47 accompanied by volume. I expect the stock to move to $37,50 level, within the next weeks.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

That's All. Have a nice evening !!!

AC

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Tuesday, January 15, 2008 

Stock to watch tomorrow - JASO, GOOG, CF,INTC

Chart courtesy of stockcharts

INTC - The stock down sharply in after hours trade on Instinet (-14%), well below the close at $22.69 on the New York Stock Exchange, because the results fell short of Wall Street's expectations. Revenues came in lower than expected. Looking at the daily chart, and following investor reaction in after-hours and I only need to point out that there is no miracles for tomorrow action on stock, I’m looking for a gap down at the open below $21.

Chart courtesy of stockcharts

CF - This stock is sitting right around the 20 dma. This stock has some support around the $110 range.

Chart courtesy of stockcharts

Looking at the daily chart, Google is currently trading in a descending triangle, which is a bearish formation that usually forms during a downtrend as a continuation pattern. To believe in a possible reversal trend, the stock needs to sustain above $622 to keep the long-term outlook positive.
Chart courtesy of stockcharts

JASO has pulled back after recent rally, and is setting up for a test of the bottom of channel. MACD and RSI still losing some ground, so we must wait for a confirmation of support before enter long here.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

That's All. Have a nice evening !!!

AC

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Monday, January 14, 2008 

Trade Ideas for Tuesday - CNXT, NVDA, AAPL, GOOG

Chart courtesy of stockcharts

GOOG - Buy point will be when the price breaks $660 mark on heavy volume. I think it's a good entry point. The technical chart above shows weak sign, as the stock is trading below its 13 day and 50 day moving average and with MACD below 0. However KD shows possible rally as K line is on top over D line. So, stay tuned on GOOG for a possible breakout over $660.

Chart courtesy of stockcharts

I'd buy AAPL when it breaks the high at $182.11 on heavy volume.

Chart courtesy of stockcharts

Before we consider jumping back on NVDA even after today gains, the stock needs to break through the resistance level of $29 to really take a run for $30.

Chart courtesy of stockcharts

Conexant confirmed my previous analyses and is rebounding off it's lows. For the first time since October, stock ended the session with share price above its 13 dma, giving the first sign for Bulls come back again and for Shorts be worry and to cover some of its positions. It was the most bullish bar in over a month. Stay tuned on CNXT.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

That's All. Have a nice evening !!!

AC

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About Me

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  • I'm a 48 year old Independent Trader using proprietary technical analysis with more than 20 years experience of investing in the US stock markets. I started this blog in 2006 simply as a way to share my thoughts about capital, risk management, and trading. My blog contains only my personal opinion and is provided for informational purposes only.

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