 |
|
 |
 |
|
Every trading day, the ShadowTrader Focus List provides you with detailed trading ideas that have defined entries, defined stops and defined targets. Each issue contains 2-5 plays daily with full chart annotation explaining the rationale behind the setup. Stocks that are in focus may contain new breakouts to 52 week highs or lows, trendline pivots, pullbacks to moving averages, strong consolidations that are "building up steam" for a future move, or other technical events that foreshadow impending price action.
Additionally, each issue of the ShadowTrader Focus List always includes "The Big Picture" which gives a heads up on key technical levels in the broad market and a short term bias outlook. ShadowTrader feels strongly that the highest probability of a trade moving in the desired direction happens when the entry is correlated with pivots in the broader market which provide added momentum.
Good Morning, Traders. Very large selloff on Thursday left the Dow lighter by 142 (on the highest volume day on the NYSE of all of 2006!), the S&P worse off by 17, and the Nasdaq Composite diminished by a whopping 48. This last figure is especially telling because it only confirms what the Big Picture has been talking about rather non-stop for weeks now. That being that whenever sellers take the upper hand in this market they hit tech stocks much harder than they do listed ones. The 48.05 point loss in the tech-heavy index represents a 2.07% drop as opposed to the other two major averages which only lost 1.25% on average. If thats not enough proof for you, consider market internals for a moment. Breadth on the NYSE was 2.54 to 1 negative while on the Nasdaq it closed 7.6 to 1 (!) negative. Advancers lost to decliners by an almost equal measure, with around 1900 more losers than winners on both exchanges. Obviously with all this selling the technical picture in the Nasdaq is not looking so hot right now. In yesterday's commentary we discussed an imminent breakdown in the $SOX which would probably lead the Nasdaq lower. This came true right as rain and now we are left with the Composite chart above and its broken uptrend. The lower circled area at 50ma daily support (red) at 2209 area is more than likely where the Nasdaq is headed in the near term. ShadowTrader continues to favor listed issues (energy & metals especially) and sees tech as currently weak across the board.
Be sure to check for earnings announcements before entering new positions over the next few weeks
For questions or comments regarding the ShadowTrader Focus List, email to focuslist@shadowtrader.net
|
FUEL - Streicher Mobile Fueling, Inc.
Industry - Wholesale Fuel and Transportation (Logistics)
Side - Long
Trigger - 3.79
Stop - 3.43
Target - 4.50+
Timeframe - multiweek
Notes
- Gradual, soft pullback after high volume rally
- Pullback has come into 20 ma (green) daily
- Volume decreasing as consolidation continues
- Showed good relative strength by not falling apart below lows of consolidation during Thursday's massive selloff
|
TZOO - Travelzoo
Industry - Internet
Side - Short
Trigger - 36.45
Stop - 39.52
Target - 30.00-
Timeframe - 3 days to 2 weeks
Notes
- Something happened in the middle of April which caused a lot of people to cover this long maligned stock. That something is now seemingly over and there is good chance that TZOO just deflates back to the high twenties
- Wide stop necessary as stock is volatile
- Stop listed is roughly in middle of yesterday's large body candle and also middle area of consolidation
- Short does not come into play until break of consolidation low which was 5/5.
|
|
|
 |
 |
 |
 |
|
