Day Trading Post #48

Ok, I am a little disappointed that I didn't lock in as much profit as I could have on some of my positions but I am not discouraged at all. As of now, if you refer to posting #45, you can see that unfortunately, the S&P 500 cash failed to close above and hold the 200EMA on the daily chart. On top of that, the stochastics on the SMI have turned over towards the downside, and the market has been pulling back. Overall, I think that this presents a great opportunity to find some nice setups for buying! Despite the fact that we are pulling back, we have a lot of support under us as I stated in previous posts. First, we have 900 which is a very psychological number (although I think that 900 won't bee too hard to break under). Then, we have 880-876, 850ish, 825, 800, 776, and so on... So, it will be very tough for the bears to bring us down that far. Again it's important to note that this is just my own interpretation of the market and that I can not predict the future! But, as I said, I personally feel that we are still in good shape and this week has just been a necessary pullback in the market. We've been going up and up and up, and at some point, people have to start taking profits. On top of that, for those people who got in late and like to chase stocks, I'm sure that we are seeing some selling as fear comes back into the market. Those who chased don't want to see us fall hard again hence we see some more selling. Again, this is just my interpretation.

Anyway, as I said, I feel that there are some nice setups and some good opportunities. As of now, I do have some positions in the open market that are slightly against me, but none of my stops have been hit! So, back on topic, I said there were some decent setups that I've seen and that I may take. I went through charts tonight, listened to day trading radio, and I would like to get some more cash out in the market so that it can work for me. As of now, I only have 30% of my cash in my long term account in the open market... so 70% of my money is just sitting there. Time to put it to work! Below are some charts / notes I've taken on some stocks and setups I like: (note: these are all cheapies, but they are they setups I liked!)

These are two that I like from day trading radio dot com:

UAUA:
-Good buying volume
- Stochastics are about to cross over to the upside & are oversold!
- 20% short interest... big upside potential!
- Entry @ 4.18 / add on pullback if breaks under $4 / stop @ $3.60ish


SIRI:
-Buying volume spike!
- Broke out of consolidation to the upside
- Entry @ $0.40 if pulls back otherwise buy @ $0.44
- Stop @ 32 cents give or take
- Profit target around 55-60 cents... scale out here or take full profit
- Based on history of chart, may be quick trade (1-4 days after entry)


Some charts / notes from my own picks and research:

EBHI:
-Big selling volume today
- waiting for stochastics to turn to upside / entry @ $0.20 w/ a stop @ 10-12 cents
-hitting 52 week low... this one may be some bottom fishing

(EBHI filed for bankruptcy protection, so I may hold off and wait before I dive into this one. I still think we can see a pop here)


MESA:
- STO crossover to the upside!
- HUGE volume spike! Lots of buying!
- Buy @ 0.13 / stop @ 9 cents / Target @ 19-24 cents




NCS: (I really like this one... lots of upside potential!)
- Very oversold and close to $2.00... approaching march lows / 2 year lows!
- Stochastics are very oversold and look like they may cross to the upside.
- Buy @2.21 (scale in)... add if breaks $2.00 / stop @ 1.75ish / targets to scale out
$3.45, $4.00, $4.25, $5-6
-hitting 1year lows (close to it)... this one may be some bottom fishing





That is my research for now, and I am sticking to it. It is important to note that these picks are just my interpretations and in no way am I suggesting that you get into any of these trades. I am not a financial advisor nor do I claim to be one. This is strictly my own interpretation and my own notes for myself. Please be careful with any trades you take as you are responsible for your own money, your own trades, and understand that you are taking a risk with any sort of investment.

With that said, I'm out! That's all for now!