Headfake?

Hello Traders,

To go or not to go, that is the question.

Volume was light, but yesterday we did have a break of short term resistance in the DIA an a break of mid-term resistance in SPY.

Today we tried to build on that, but with 20 minutes to go, we have sold off from highs (as we did yesterday).

With the weekend coming, are longs going to exit? Are new longs going to come in?
Could be a low risk high reward trade to buy puts, enter covered calls, enter bear call spreads.

The DOW still hasn't taken out resistance from Jan/Feb at 8300/8400. SPY still has resistance at 88.05 from Jan/Feb.

As I mentioned above, regardless of your direction or strategy, it all comes down to your RISK/REWARD and your money management from ENTRY through EXIT.

Happy Trading
Trader B

United Online

With the futures up again this morning...our longs in GOOG, FSLR, and ILMN continue to move upwards. Here is a nerw position we are adding to the portfolio - UNTD. They are an aggregator of online businesses such as FTD and classmates. With earnings on May 5th the stock is breaking out of a longterm downtrend with the 21 day MA crossing over the 50 day MA, stochs and MACD look great and with a nice short ratio we will see where this small cap can take us.


Trade well,
Trader D

Blastoff

Right after the close we ran several hundred charts. Prepare for for the markets to surge higher.

Trade well.
Trader D

SPWRA

We have mentioned the Solar sector as a group that could shine very bright this year. let's take a look at the headlines from sun Power (SPWRA) this Friday morning:

Jefferies cuts SunPower target on earnings missat MarketWatch(Fri 8:14am)
Sunpower downgraded by Merriman Curhan FordBriefing.com(Fri 6:26am)
SunPower 1Q loss surprises Street; outlook cutAP(Thu 8:01pm)
SunPower, MEMC results hurt by falling solar demandat Reuters(Thu 7:30pm)
SunPower Posts Lossat TheStreet.com(Thu 5:43pm)
UPDATE - SunPower posts unexpected loss, cuts outlookat Reuters(Thu 4:47pm)

SPWRA is currently trading up.

Trade well,
Trader D

Trade Update

With the earnings out of the way on ILMN, the chart still is intact as it has yet to break the 50 day MA

Trade well,

Trader D

Reason for concern

Good news -The Dow was able close above it's 21 day MA yesterday (barely).
Bad news -The MACD and ADX have gone negative.

Let's be cautious as we wait to see how this shakes out

Trade well,
Trader D

To Rent or Not to Rent

Hello Traders,

NETFLIX!!!

Have you been following this?

The stock has been on an incredible run - 183% since December!

At some point it will become overbought, has it run its course? Earnings are coming up, and volatility has crept higher.

The point is, while doing yoga this morning, I missed my entry. Even with a strong rebound in the stock market, this stock finished down, BIG. A little scary to get in before earnings and with an increase in volatility, but today's move may have been enough.

THE REAL REASON TO ENTER - DOUBLE BOTTOM. The double bottom was satisfied. 18 to 33 and then 33 to 51 - perfect double bottom. And perfectly satisfied, which means overbought!!

Let's see - risk of the stock going above short term resistance - small. Reward of it dropping into mid 40's - big. Stock drops 6% and the ATM put (one month 0ut) moves 45%.

Not a bad day, swing, intermediate trade!

Happy Trading
Trader B

Next stop....7500

The 21 day MA will be broken this morning. The next stop is the 50 day at 7500.

Trade well,
Trader D

Head Fake or Reversal

Hello Traders,

We peaked above 8000 with a small level of resistance above that at 8300.

Today's downmove wasn't a surprise, but does it mean the beginning of the next downward leg in our 2 year downtrend? Or is there enough strenght to stay within earshot of 8100 and can we make a surge higher?

We have lots of earnings and some economic data, mostly later in the week. Will it be whippy and sideways in a range between 7500 and 8100 - that seems pretty likely until we get significant news to send us to new highs or careening towards 6500.

Whatever the case, a 23% move in a downtrend was a great place to be neutral to bearish.
Bear calls, covered calls, and puts are in favor.

Happy Trading
Trader B

TEAM HOYT

We want to congratulate TEAM HOYT on their 1,000 race and 27th Boston Marathon today!

If you haven't heard about this father and son "team", please take some time to read about their inspiring story:

http://www.teamhoyt.com/

CAVEAT EMPTOR

"Let the buyer beware"

Now that the major bank/financial stocks have reported.....sell on the news?

Trade well,
Trader D

ILMN Update

Our plan before the market opened was to sell 1/2 the position. The stock sold off swiftly and we doubled down with an exit at the 50 MA (intraday). It bounced off perfectly! we sold 3/4 of the position up 2 1/2 for the day and will keep the remainder for earnings next week.

We have also lightened up our Solar positions. They are starting to show some weakness here with the stochs just starting to roll over.

Trade well,
Trader D

ILMN +10% AFTER HOURS

NEW YORK (AP) -- Shares of genetic analysis company Illumina Inc. rose Thursday after the company said it sold 22 gene analyzing systems to the Broad Institute, boosting that institution's installed base to 47 units.

The Broad Institute is a collaboration between Cambridge, Mass., neighbors Massachusetts Institute of Technology and Harvard University. It focuses on genetic research.
Shares of Illumina rose $1.34, or 3.9 percent, to $35.61 in midday trading. The stock has traded between $18.82 and $47.88 over the past 52 weeks.
"The Broad Institute's decision to significantly scale their installed base of Genome Analyzers is a tremendous sign of their confidence in our ability to continue improving the performance and economics of the system," said Illumina Senior Vice President and Chief Financial Officer Christian Henry, in a statement.
During the first quarter, the company reported a 43 percent boost in revenue, reaching $160.9 million. The Genome Analyzer is one of its main genetic technology products.

GOOG

we just passed the 30 point mark on our GOOG trade....75 more to go!

Trade well,
Trader D

Support or Resistance?

Hello Traders,

The Dow is finding a nice pivot point at 8000. Which way will it go?

The overall trend is down, the short term trend is up. If you draw a trendline connecting the highs in the Dow, you will see we are bumping up against a trendline from all the way back in November 2008.

Earnings, initial claims, and Bernanke on Friday. Do we continue to go sideways, breakout to the upside, or roll over?

A lot of short term traders are short and if we do breakout, they may have to puke which will add fuel to the updraft.

Happy Trading
Trader B

Trading update

Our charts aren't working tonight so we will spell it out:

ILMN - starting to look very weak as the stock has dropped below the 50 day MA 3 times but has closed above it. The DMI has gone negative. be careful with earnings next week.

New entries:
PFE & WYE (both oversold and the DMI just went positive.

Trade well,
Trader D

INTEL

reported after hours.

Trade well,
Trader D

Turn on the lights

As the market digests the GS earnings (great report) and the secondary offering (dilution), the small cap solar stocks are taking off. We highlighted First Solar (FSLR) recently and now the 2nd and 3rd tier related stocks are moving up as well. I don't have time to show the charts this morning but here are the names for you to check out on your own:

AKNS
ASTI
CSIQ
ESLR
SOL
SOLF
SOLR
JASO
YGE
SPWRA

Trade well,
Trader D

tomorrow morning before the bell

Goldman Sachs earnings before the open!

Trade well,
Trader D

Highly Rated...

Buying a 1/2 position of Bankrate (RATE):


Trade well,
Trader D

Jumping into Bunge

Bunge Ltd (BG) is in the agriculture sector and looks decent for a 1/2 position:



Trade well,
Trader D

First Solar (FSLR)

We continue to like FSLR as the 21 day MA just crossed above the 50 day MA. We see it breaking over $200 over the next few months...



Trade well,
Trader D

If you are short this morning...

Trade well,
Trader D

Keep it tight

we have a tight stop loss on ILMN (trading below 50 day MA) as well as all of our positions. This market continues to be extremely volatile especially during the next few weeks of earnings.

Trade well,
Trader D

Got DNA?

Selloffs create opportunities. We will show patience and choose our new purchases carefully. This morning we got a nice pullback to support on Illumina Inc (ILMN) the genetic analyzing company:


Trade well,
Trader D

Financial short

The market is struggling today but we continue to feel that the move higher is not done yet. State Street (STT) has alot of overhead resistance and "should" have a tough time breaking above. The financials have come a long way quickly and this chart shows promise for those looking for downside protection.

Trade well,
Trader D

Short Squeeze possibility

We are going to offer our readers a "lottery ticket" on this early Monday morning. Orleans Homebuilders, Inc (OHB). This company has a very high probability of going bankrupt...soon. Although, with an EXTREMELY high short position (70 days to cover) we could see a tremendous spike before hand. The stock trades very thinly and we bought 250 shares to roll the dice.




Trade well,
Trader D

Never say die!

The unemployment numbers are very negative once again but as of the opening the markets refuse to go down. Who knows what the rest of the day will bring but for right now..GO BULLS!

Let's see if AKAM can get back on it's feet after the almost defunct Citigroup downgrade.

Trade well,
Trader D

Hip Hop Hooray

What a day. We took some of our new QQQQ (call) position off the table when we were up over 130% for the day. Look for more upside for the next two weeks and we will take a look at the charts at that time.

GOOG had a great break above 360 that we mentioned yesterday. We hedged our portfolio with a small position of the short real estate ETF (SRS)and will continue to manage the portfolio for risk.

Trade well,
Trader D

When things go wrong

It's early Thursday morning and the futures are looking very positive. The markets look good for a decent continuation of the rally. BE AWARE - we are still in a bear market and when negative news comes out on individual companies..the results can be a quick reminder of how stocks can go south quickly. Here are 2 examples from yesterday:




Trade well,
Trader D

PBR Tall

Nope, not the cool premium suds but PBR - Petroleo Brasileiro:



Trade well,
Trader D

April begins...

We are back from our hiatus and the markets look....somewhat decent at this point. We covered our puts, went long the Q's and still hold our position of AKAM. We bought a small position of GOOG and are looking for a price target of $450 if we can get a break above $360...


Trade well,
Trader D