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Sample Newsletter
Tuesday, January
03, 2006
|
Symbol |
Entry Price |
Direction |
|
USG |
$65.75 |
Long |
|
NUAN |
$7.90 |
Long |
|
LCRD |
$15.25 |
Long |
|
CEPH |
$67.00 |
Long |
|
DLB |
$17.25 |
Long |
|
|
|
|
Good evening StockBandits!
An uneventful morning left the market near the flat line before the
mid-day release of the minutes of the last Fed meeting. The minutes contained
info that many of the central bankers felt that few further interest rate hikes
are needed, which gave the bulls a chance to stretch their legs, sending stocks
flying higher. Let’s get to the charts.
First up is the S&P 500, which bounced off the 1246
support which has been highlighted here a number of times lately. Today’s
volume was excellent and puts the S&P 500 just a few points shy of
breakout territory. The only reservation is that we’re still in the trading
range that started about 6 weeks ago. Until 1276 can be broken, there’s no need
to get excited. Today is a good start, though, and if the bulls can build on it
then it shouldn’t take long for momentum to build on the daily chart.
TCNet chart courtesy of Worden Brothers, Inc.
The NAZ pierced 2200 today for a short time but rebounded
very well, bouncing some 53 points off the low. This is a wide-range day on
high volume, as well as a bullish engulfing bar, which will have many
technicians getting excited about the possibilities. The real move will be if
and when this index can clear the December highs with a push to the 2280 area.
Until then, there is little argument that this index is also range-bound.
TCNet chart courtesy of Worden Brothers, Inc.
The DJIA found support at the 10,700 area today and
vaulted higher. This puts the DJIA also back into the middle of the
recent trading range. A move up through the upper line at 10,960 would be a
positive development.
TCNet chart courtesy of Worden Brothers, Inc.
USG
has been quietly making higher lows and is resting just beneath a small area of
resistance. I'll be looking to buy this stock if it can clear $65.75.
TCNet chart courtesy of Worden Brothers, Inc.
NUAN
has formed a nice bull flag pattern here and the volume has picked up recently.
A move up through the upper line at $7.90 will be my signal to get long as the
uptrend resumes.
TCNet chart courtesy of Worden Brothers, Inc.
LCRD
has been consolidating just beneath highs and looks about ready to make a move.
The lows of the past 2 weeks have been rising, indicating that accumulation is
taking place. My buy point is set for $15.25 as this stock clears resistance.
TCNet chart courtesy of Worden Brothers, Inc.
MOMENTUM MOVERS
CEPH
is perking up again and may soon leave this bull flag pattern. A push to new
52-week highs at $67.00 will be my buy signal for this momentum stock.
TCNet chart courtesy of Worden Brothers, Inc.
REVERSAL CANDIDATES
DLB
is starting to turn higher after finding what looks to be short-term support.
My buy point will be if this stock can clear $17.25, with a protective stop-loss
placed below support just in case a bounce fails.
TCNet chart courtesy of Worden Brothers, Inc.

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