Wednesday, June 13, 2007

New Highs Soon for the Nasdaq?

I've spent the last few evenings with my wife and kids, conciously trying to stay off the computer and this blog. I figured that with the markets in transition mode, it would be a good time to regroup and wait for some more data to emerge to guide future direction. Well, the markets seemed to think that we got that data today in the form of the Fed's Beige Book.

Looking at a chart of the Nasdaq, it seems that this last dip was just what it needed to build up some strength for the next leg up. The MACD is below the negative line, and the Stochastics just crossed over, giving a buy signal. Both have plenty of room to run. Last Friday's bounce made a perfect touchdown on the 50 day average. Furthermore, it seems likely that a lot of bear bets were made over the last week or so, and if the market continues to move up, they will have to be unwound.

Yesterday afternoon I sold off TRW as it traded beneath its 50 day line. Of course today it rebounded, but oh well, as it is important to close out a trade if it fails the criteria for which it was entered. It is also just as important to know when to re-enter a trade. At the close today, I picked up another 500 of SWHC @ $14.78. I am anticipating my other 500 shares getting called from me tomorrow or Friday, and I don't want to have to re-buy them above $15.00

Tonight I will be running some screens and looking for new candidates. I will go into Thursday with over half cash.

***Update*** The following are some symbols that looked promising. These were returned from the BobV32x filter and the Close at HOD plus 10% increase in volume. You might find them interesting. I like posting them here because it saves me having to write them down and take them to work.


And from the 52 weeks highs list, I like VRGY, PRX. What I want to do with all of these is compare the ATRs per Marlyn's suggestion to help me weed out the ones less likely to move.

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