There Are No New Swing Longs For Thursday As Scans Of Over 900 Charts Fails To Produce A Single Long

February 28, 2007 | Leave a Comment

The title says it all. I scanned around 900 charts from all my scans and only three looked somewhat good to me (CRYO ORNG SUNH) but something was wrong with all the charts. There was something I did not like about all of these. Either low volume, a cup without a volume surge that needs a handle, or a falling fund ownership and choppy chart pattern - whatever it was I did not like it.

Posted by Joshua Hayes | Filed Under Free Archives Longs

No New Swing Shorts For Thursday As The Market Still Has Not Entered A Clear Downtrend Under Heavy Distribution

February 28, 2007 | Leave a Comment

The market still is not in a full downtrend under 4 or 5 distribution days in the past month. Therefore, it still is not the right time to short stocks. The trend still is not established. We are going to probably bounce around HARD in this area for a while or at least get some wild choppy days after the Tuesday we had this week.

Posted by Joshua Hayes | Filed Under Free Archives Shorts

China’s Market Crashes Sending Shockwaves Throughout World Financial Markets; 215% Run In Twenty Months Is Not Sustainable

February 27, 2007 | Leave a Comment

Stocks were crushed, Tuesday, after a meltdown in Asian markets led by the Shanghai index closing lower by 8.8% and a weak durable goods number. The Shanghai index shed almost 9% offering up its worst selloff in over 10 years. This selloff in China, which has been the leading market index the past two years, spilled over to world financial markets and had a devastating effect on ours as well. That combined with durable goods coming in 7.8% lower and missing expectations of 2.2% sent our indexes lower with the worst one day loss in four years. Read more

Posted by Joshua Hayes | Filed Under Free Commentary

One New Speculative CANSLIM Swing Long For Wednesday

February 27, 2007 | Leave a Comment

New speculative CANSLIM swing long: HEIA

HEIA is bouncing off the 50 dma, on very strong volume. This stock has been in a steady uptrend since 2005, constantly finding support at the 50 and 200 dma with accumulation on the uptrends and low volume pullbacks when the stock comes down. BOP has been around the zero line and in the green territory most of the way. The move today, in the face of a horrible market and the previous move on volume this month, along with BOP going towards the max green area and being green since the move in Feb started, makes this a pretty chart. The fundamentals are strong with EPS growing between 27% and 53% the past four quarters and sales growing between 38% and 55% during the same period. This stock is speculative due to the current market environment, the low avg. daily volume, and the fact that fund ownership is decreasing. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through on its breakout immediately. Read more

Posted by Joshua Hayes | Filed Under Free Archives Longs

No New Swing Shorts For Wednesday As The Market Is Still Not In A Confirmed Bear Market

February 27, 2007 | Leave a Comment

3 out of 4 stocks follow the trend of the market. The trend is starting to change but before it does, IF IT DOES, it is going to get very choppy in the short term. With only two distribution days on the markets, there still needs to be a couple more distribution days before we are for sure this market is done. Nobody says a snap back rally can’t occur here. The best time to short most stocks, according to history, is a couple of months or more AFTER their top. There is still plenty of time to go short, if this is the start of a real bear market. I would not short here and since I know that emotions are high I am not even going to post short candidates as I do not recommend going short yet. If I change my mind, they will be listed below.

Posted by Joshua Hayes | Filed Under Free Archives Shorts

A Blast From The Past Puts Pressure On Stocks; Normal Selling Hits The Averages

February 27, 2007 | Leave a Comment

Stocks gapped open at the morning, on the back of some great buyouts (the TXU is really not good; but that is a diff. subject). STN and TXU were both buyout targets this Monday. However, that good news was quickly absorbed and just as quickly forgotten about after the former Fed chairman Alan Greenspan weighed in with comments that the US economy “could” slip into recession by the end of the year. That was enough to stop the party. The good news, when the trading day was over, was that stocks, once again, climbed off the lows of the day and finished with respectable closes. A trend that has been well established for almost two weeks now.

Posted by Joshua Hayes | Filed Under Free Commentary

No New Swing Shorts For Tuesday As The Market Is Still In A Very Strong Uptrend

February 26, 2007 | Leave a Comment

3 out of 4 stocks follow the general trend of the market and that trend is up and the best traders never bet against the trend. Bottom line: Don’t short a rising market.

Posted by Joshua Hayes | Filed Under Free Archives Shorts

One New Speculative CANSLIM Swing Long And One New Speculative Swing Long

February 26, 2007 | Leave a Comment

New CANSLIM speculative long: EML

EML is bouncing off support and breaking out over the past seven days’ highs, on strong volume. This stock has been in a very strong uptrend since September that coincided with BOP going max green. After a stock split the stock continued to rally on strong volume that culminated with an extremely strong run in February. After a pullback, with BOP in green territory, EML is now bouncing on a pickup in volume after finding excellent support around the 24 area. All of this makes this a pretty chart despite the few red BOP areas (notice the stock rallied or stayed flat during this red period–bullish). The fundamentals are strong with EPS growing at a 54, 11, 33, and 317% clip the past four quarters. Sales have been growing from 6 to 76% during that time. This stock is speculative due to the low average daily volume, lack of fund ownership, and the short base. Cut your loss with a close below the 23.75 support, if the stock does not breakout from this basing pattern immediately. Read more

Posted by Joshua Hayes | Filed Under Free Archives Longs

Indexes All Finish In The Red But Still Finish Well Off The Lows; Leading, Tech, And Small-Cap Stocks Lead This Week

February 24, 2007 | 2 Comments

Stocks finally decided to take a break, across the board, as stocks meandered in the red all day, closing off the lows. However, a slight change of character was the fact that there was no last hour rally. That is probably due to most traders starting the weekend early as an exhaustive holiday shortened week comes to an end. There was no doubt that with no economic news of significance today that digesting this week’s gains was a good thing. Read more

Posted by Joshua Hayes | Filed Under Free Commentary

Three New Speculative CANSLIM Longs, Three New Speculative Longs, And Four Stocks I Am Adding To My Existing Positions

February 24, 2007 | Leave a Comment

New speculative CANSLIM longs: UCLP IART ATR

UCLP is breaking out of a short cup which is also part of a longer base on base pattern. Volume is lacking on this breakout but the price pattern it formed in the base and on this breakout signal that sellers have dried up. BOP has been a high level green the whole period, after February’s move. The beautiful BOP, with proper price action, and a big jump in RS makes this a beautiful chart. The fundamentals are very good too, showing continuous growth. EPS has been growing between 5% and 28% the past eight quarters and sales have been growing between 4% and 25% the past eight quarters. This would be a great long for everyone, if there was more avg. daily volume, more volume on today’s breakout, and the industry group was better. However, this is still a great stock. Cut your loss w/ a close below the 28.64 level, if the stock does not follow-through immediately on its breakout. Read more

Posted by Joshua Hayes | Filed Under Free Archives Longs