Market Watch for the week of 8/9/2009

[Dr. Dave]

OCNF - I think the key levels are $1.25 and $1.50. All trading has been inside the after earnings candle. A touch at $1.25 could be an entry, but look out for it going lower, a move up in decent volume above $1.50 would be the more proven point of an up move. Consult the $BDI, $SHX and a few other shipping stocks... ie. fundamental leader ISH, medium fundamental stock EGLE - which looks like it may bounce up, and another fundamentally weak stock like DRYS.



PACR - bumped into resistance... look for it to form a handle, or pierce the resistance, unfortunately, has more price resistance above... so likely not the best time for an entry, until things unfold a little.

[Dr. Dave]

QASP -

Woulda liked to see the close a little higher, pray for an inside day on monday or rally, if the downtrend continues, look for 25 (add your decimals, you know what I mean) as the next support.



SPNG -

Easier play, look for a break to either side... that's where the price should continue to go.

[Dr. Dave]

TXMC - candle down, look for support at 0.005, if that doesn't hold, then 0.004 (which is what I'd bet on if I were in vegas... ie. ABC down).



The rest of the list, I didn't see anything worth mentioning. As always, this is just my interpretations of TA only, no condsideration of outside forces such as the float, levelII, fundamentals, PRs, were taken. Do your own DD, and remember, these stocks involve risk and are not suitable for all investors. Past performance is not indicative of future performance. Yadda yadda...

[bassmaster]

dave, if you get a chance can you do a T/A of HASbro for tyler. he's done so much for us being here. i think we owe it to him


plus my question on that is : are options a good play there?

[imromo24]

Ill remember that garmin chart for future stocks with large gaps from a CC.

[Dr. Dave]

dave, if you get a chance can you do a T/A of HASbro for tyler. he's done so much for us being here. i think we owe it to him


plus my question on that is : are options a good play there?

Ok, I'll give it the full blown chart TA... as far as options go, they would be longer term, and I don't have a good feel for that.. the option price decays everyday, and you'd have to call it out way ahead of time... we can analyze it though, I wouldn't run options until there is a clear sign of upward movement. There are much better stocks for option plays now, are you cleared to trade them yet?

[Dr. Dave]

Ill remember that garmin chart for future stocks with large gaps from a CC...hmmm....siri?

are you talking SIRI gapping after an earnings announcement? I don't see a gap for the last one.

Also, his TA is more for listed stocks trading above $5 or so.

That and we're talking intermediate term trading strategies only for that, not for long term... I see a lot of stocks get the earnings gap, fill the gap, then move on up. But if you are looking at intermediate term, he's the master statician, and plays to keep his money, so while after an earnings gap, you could have a further move up, he doesn't risk it unless he's convinced of going longer term, and has a big lead, at least that's my interpretation of his trading.

I'll be back in a bit

[bassmaster]

yes, ive been cleared to trade options for as long as ive had my account open.. im cleared for LEVEL 2 options trading. does your broker have have 4 levels of options trading?

im a virgin to options so i would have to be walked through the first buy and sell.

[imromo24]

are you talking SIRI gapping after an earnings announcement? I don't see a gap for the last one.

Also, his TA is more for listed stocks trading above $5 or so.

That and we're talking intermediate term trading strategies only for that, not for long term... I see a lot of stocks get the earnings gap, fill the gap, then move on up. But if you are looking at intermediate term, he's the master statician, and plays to keep his money, so while after an earnings gap, you could have a further move up, he doesn't risk it unless he's convinced of going longer term, and has a big lead, at least that's my interpretation of his trading.

I'll be back in a bit

yeah oops, it looked that way on my chart but i was looking at it wrong, post edited.

[Dr. Dave]

yes, ive been cleared to trade options for as long as ive had my account open.. im cleared for LEVEL 2 options trading. does your broker have have 4 levels of options trading?

im a virgin to options so i would have to be walked through the first buy and sell.

YEah, I have 2 accounts cleared for options, I remember one of them explicitly listing the levels and I had to choose one. The other, scottrade, I think I just listed the ways I wanted to trade. I'm not sure if the levels are standardized, but I found this online...

http://www.optionetics.com/market/articles/15264

I just buy puts and calls, which on this is level II ... I had tried it longer term before, with an expert, but when things go wrong, they go really wrong, so I do it on my own now, but very short term. You'll see that for something short term, its not too complicated.. if you want, I'll post what I think my next trade is, and if you think I have the direction right, you can trade a single contract (like something running $150-350 a contract, and we'll try to target the the stop loss to about $50-70). Not sure what the prices are, but we could play LUV, ie. if it looks like it will close above the flag, buy a call, if it looks like it will close below, buy a put. Let the flag lines be the stop loss targets, and let it ride overnight. LUV is pretty cheap though, so the contracts may be a little cheaper. I'll check on it later. I'll post in that other stuff I had ready for the options school, then I can go over the strategies I've been playing thus far.

If its shorterm, like 1-3 days, we don't have to really go thru all the fancy calculators and such, provided we trade the september contracts.