Stocks to Watch Tomorrow

ISON:

• Like I've said a week ago (Below), ISON had been struggling to find buying interests for weeks and it couldn't even hold 2.5 today when the major indexes were performing exceptionally well. Seems like the company is going to be out of business soon, huh?
• http://swingtradeguru.blogspot.com/2005/03/able-re-entry.html
• Well, not really! Dont be panic, it is not done yet:) I expect it to make an intermediate-term bottom in the next day or two and it is due for a major bounce back to 3s in the next two weeks. I'm going to accumulate at 2.1-2.3 tomorrow&Fri and hold till next week to see what happens next. I will sell ONLY if 2 is broken with large volume.

GIGA:

• This stock is on my daytrading list for a quick bounce back to 5.5 . Two entry points here: For swingtraders, get in as close to 4.25 as possible and break of 4.2 is your stop-loss; For daytraders, get in upon break of 4.5 and set tight stop-loss (15 cents below).
• http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=giga&sid=0&o_symb=giga&freq=7&time=18

STEM:

• This momentum stock broke its downward trending line today with larger than normal volume. I'm interested in owning it in the morning around 3.2 for a short-term bounce to 4. My stop-loss will be set below 3.
• http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=stem&sid=0&o_symb=stem&freq=7&time=18

ABLE&GEOI:

• These two stocks bounced back a little bit during the last two hours of trading with relatively small volume. However, since the up-volume was insignificant, I dont see it going higher beyond this point and I think it will retrace lower to high 8s in the next few days. So I will keep my entry points (8.85 for ABLE & 7 for GEOI) for now.

Trade well for tomorrow!

GEPT

This stock is currently on my watchlist for a short-term bounce to 3.4 area. I'm interested in buying it right here at the support (2.6-2.7) and I think its downside risk at this point is minimal. Good Luck!

TASR Update

Out of TASR today at 12.7, I think the news is not significant enough to send TASR further from this point. Will watch it closely to find another appropriate entry point. Stay tuned for updates!

ABLE&GEOI entry point

I expect ABLE&GEOI to reach a short-term bottom either this afternoon or tomorrow morning. My accumulation range for ABLE is 8.85-9.05 and for GEOI is 6.9-7.1 . Stop-loss will be set as 8.45 and 6.69 respectively. I'm looking at 12-13 (ABLE) and 9-10 (GEOI) to unload.

TASR, SOHU, FUEL(ABLE,GEOI)

Another disappointing day for the bulls, huh? The general indexes were sold off pretty badly, NAS dropped to its first support 1970 and SP500&Dow both touched their recent support 1163&10370-10400. A break of these crucial levels will definitely cause bulls to walk away for at least several months before coming back, so longs better keep a close eye on these supports! Now let's get back to specifics.

TASR:

• Got out in the morning today and re-entered at 12.12 before the close. I expect to see at least a short rally tomorrow to 12.6-12.8 EVEN if there's still no PRs from the company.

SOHU:

• This stock broke its 200-day MA for the first time a month ago since Feb 2004 and consolidated well above it taking into account of the market-wide weakness for the past month.
• With today's big selloff, it closed just above its 200-day MA (17.25) with below than average volume. I'm willing to own it tomorrow at a price as closer to this number as possible with a stop-loss set below 16.9 . My short-term target for SOHU is 21-22.
• http://stockcharts.com/def/servlet/SC.web?c=SOHU,uu[h,a]daclyyay[dd][pb50!b200][vc60][iUb14!La12,26,9]&pref=G

FUEL(ABLE,GEOI)

• I expect to see a short-term rally for these oil momentum stocks in the next few days. I will start accumulating some FUEL tomorrow at near 2.15 since its chart looks much better than the other two. I will wait for 2.8+ to unload.
• For ABLE&GEOI, I will wait for clear chart confirmations before I take a long position.

Trade well tomorrow!

AIRT re-entry (Daytrading Only)

I'm interested in buying AIRT tomorrow morning at around 17.5 and 19+ is the target I'm shooting for. Tight stop-loss is recommended in case of breakout failure due to NAS's continuous weakness. Good Luck!

Updates on TASR, GOAM, FORD

TASR:

• I sold TASR in the openning today and bought some back right before the close. I'm expecting to see a follow-up PR soon OTHERWISE 12.5 may not hold tomorrow and 12 will be my next re-entry point.

GOAM:

• This stock failed to resume its previous run and broke down to the lower end of its 10-day range during the last half-hour. I think this big selloff was primarily contributed to NAS's weakness in the last trading hour and it had nothing to do with the company itself or bad news. Bought some shares during the final hour selloff at 8.06 and I'm expecting a retracement to 8.5-8.8 tomorrow.

FORD:

• FORD's chart still looks bullish to me at this point, it made a new 52-week high today and formed a High Low High High bullish flag. However, its failure to sustain its breakout and to close above 12 along with NAS's continuous weakness remind me that this bullish flag might be a trap and "Serenity Before the Thunderstorms". So here's my suggestion: Take the long side ONLY if the market is holding well and showing strength and put your stop-loss at just below 11.44 (day low); Take the short side IF NAS breaks 1990 and starts heading south from there. I'm looking at 10 to cover if this is the case.
• http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=ford&sid=0&o_symb=ford&freq=1&time=4

Good Luck for tomorrow and stay tuned for more updates!

Extra pick for Mon - FORD

I'm interested in buying FORD if it can break 12 with relatively large volume and general indexes are doing good. I'm looking at 13.5-14 as the top range to unload (For both traders&investors).

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=ford&sid=0&o_symb=ford&freq=1&time=4

Good Luck!

Portfolio Scoreboard for the Week

Symbol L/S EntryPrice CurrentPrice(Or ClosedPrice) Profit% Sentiment(Or Action)


CFCI L $21.71 $24.2 12% closed

GRU L $20.69 $19.5 -6% closed

AIRT L $16.41 $18.9 15% closed

ANTP L $19.2 $20.8 8% closed

ANTP L $21.36 $24.29 14% closed

ABLE L $12.5 $12.06 -4% closed

ABLE L $12.16 $12.65 4% closed

SYBR L $3.03 $3.98 31% closed

TASR L $12.72&12.41 $12.56 0% closed

TASR L $12.21 $11.74 -4% closed

TASR L $12.65&13.05 $13.91 8% HOLD


New picks will be posted throughout the week. Trade well for tomorrow!

TASR, GOAM, ABLE, FUEL&GEOI for Mon

TASR:

• This swing king finally did its long-expected run today boosted by the U.K approval news. I missed most of the run today since my stop-loss was taken in the morning and re-bought at 12.65&13.05. MMs did a great work driving the price down in the morning before the news hit the wire and I guess many poor investors got their stop-losses taken and missed the boat. Anyways, this is just the way game is being played in the stock market right?
• Back to the technicals, as you can see from this chart, TASR broke out of the downward descending channel (started from mid-Jan) with large volume. Stochastics start bouncing off oversold conditions and MACD is approaching the centerline. Looks like it is heading back to 20s soon, urh?
• Dont get too excited at the moment. There's still a long way ahead for this to happen. If you look at the chart closely, its price is currently sitting almost 10% below 200MA (15.11). Longs really need to push it through this point and its price has to consolidate above 15 for several days or even weeks before the next run-up can happen. Although the news is great and we are bouncing off from the lows, whether it can hold today's gains in the next few days is what matters most to the bulls. So my suggestion is hold at this point, take your profits/cut your losses if it touches 200MA on Mon but failed to hold there, and wait for the pullback to re-enter.
• http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=tasr&sid=0&o_symb=tasr&freq=1&time=6
• http://clearstation.etrade.com/cgi-bin/details?Symbol=tasr&Refer=http://clearstation.etrade.com/cgi-bin/delisted_symbol%3fSymbol%3dtasr%255C%26Event%3ddetails
  

GOAM:

• I'm expecting a follow through run on this momentum stock on Mon after today's breakout. Two entry points here: for swingtraders, get in as close to 9 as possible at the opening and place a stop-loss below 8.9; for daytraders, get in upon break of 9.4 . I'm looking at 10.5-11 to unload.

ABLE:

• Jumped out at high 12s with a little bit profit today but I still expect another rally coming early next week. As I've said a week ago, I see crude oil futures heading to $60/barrel mark in the short term and it looks ready for another run after the past 3 days' selloff.
• I believe ABLE has the capability to run to 16s as long as it holds 11.4 . So anything close to 11.5 is a strong buy for now and my stop-loss will be below 11.4 .

FUEL&GEOI:

• Similar as ABLE, I have a short-term target of 2.8 for FUEL and 12 for GEOI.

Stay tuned and Have a nice weekend!

ABLE & SYBR for tomorrow

ABLE:

• Got stopped loss out at 12.06 today but re-entered at 12.16 before the close. I guess MMs were trying to take out a large number of stop-loss orders sitting below 12.10 and accumulating at high 11 range at the same time. Their strategy is to trick weak hands to sell and accumulate at lower prices to prepare for the next run-up. I think ABLE is ready for another run tomorrow and I will buy more in the opening if it looks strong. How high is MM going to take it to this time? We will see it soon:)
• http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=able&sid=0&o_symb=able&freq=1&time=5

SYBR:

• This stock has been on my watch list for several days now and it looks ready to break out of this level. I'm interested in buying it tomorrow morning with a stop-loss below 2.95 . I'm looking at 4 to unload.

Stay tuned and trade well for tomorrow!

ABLE Re-entry

Right here at 12.5 with stop-loss below 12.1 . Let's see if it can go up from here. Good Luck!

Updates on GRU, AIRT, ANTP, CFCI

AIRT&ANTP did very well today before the FOMC announcement at 2:15pm. The boost of another quarter-point in interest rates and broader inflation worries rattled investors and caused a major selloff towards the close. I closed my positions on AIRT&ANTP with profits and GRU with losses the instant I saw NAS&DOW dropping into red territory, although I was expecting AIRT to top 20 today and ANTP to close above 22 and gap up around 23 tomorrow morning. In this highly volatile and unstable market, it is very important to adjust your price targets accordingly and react promply to any unforseen changes (eg. unscheduled news, changes in chart pattern). Today's selloff is overall bearish and I expect major indexes to continue their downward momentum in the coming days. I'm looking at 10360 as the intermediate-term support for DOW and 1970 as the first support for NAS. Until they hit these support levels, it is advisable not to go aggressively long on any of the low-float stocks I've mentioned due to their high risks and high volatilities. Now let's go back to the specifics..... GRU: I was expecting to see a surge to the upside today and a close above 20.5, unfortunately it worked out the other way round. Its chart still looks bullish to me at this point and I expect it to hold 17 and bounce off from it tomorrow. Failure to hold this level will lead it to re-test major support at around 15.5 . AIRT: It almost hit my target today with more than 3m volume traded. I expect it to consolidate another few days before making any significant movements. I see today's high as the intermediate-term top and I will let you know about the next entry point when the chart says so. ANTP: I still maintain my short-term target of 27+ on ANTP. However, if the major indexes continue their selloff momentum in the coming days, its breakout may fail to hold and it may resume its downward trend eventually. So my suggestion is: if it gaps up in the morning at around 21, it is wise to sell and get back in lower later; it it opens flat, it is worth to hold and see what happens next. CFCI: I was expecting a gap up in the morning above 25 but it didn't work out that way. I closed my positions and I'm interested in buying back some shares at high 21 & low 22 with stop-loss below 21 depending on how well the general market performs tomorrow. Trade well tomorrow!

GRU, INCX, AIRT, ANTP

GRU&INCX:

• I expect GRU and INCX to outperform in the coming days followed by ASKJ's buyout news. GRU has formed this bullish triangle chart pattern after it gapped up in the morning and filled the gap before the close. Although it closed near low today, it does make a higher high and a higher low. My suggestion is to accumulate at this level and buy more if it drops to 18.5-19. I'm looking at mid 30s as my short-term target for GRU once it clears 22.5 and break out this bullish triangle. I'm also interested in buying INCX if it can break 12.5 .
• http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=gru&sid=0&o_symb=gru&freq=1&time=6

AIRT:

• Watch out for a possible break out tomorrow once it goes above 17.25.

ANTP:

• This stock has been on my radar since the beginning of March. After consolidating for 2 weeks and re-tested its short-term support (high 17s) for several times, it looks ready to another run-up. I'm looking to accumulate some shares tomorrow at around 18.5 and my short-term target for ANTP is 27-28.
• http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=antp&sid=0&o_symb=antp&freq=1&time=5

Good luck and trade well tomorrow!

For the Week Ahead

CFCI:

• This chemical manufacturing company has got into IBD 100 list 3 times in a row recently with #1 ranking for the last two weeks. Its chart looks great here with healthy pull backs on every gap ups. Like I've said last week, my short-term target for CFCI is 28-30. Since this stock has a tiny float (1.5M), it can move very fast in each direction (possibly between -10% and +10%) during a typical day. Whenever you buy a stock with small float, it is advisable to place your bid at support levels rather than chasing the ask. In this way, you are not likely to be caught high during the swing and your potential losses are minimized.

TASR:

• It is time to do some bottom fishing at this intermediate-term support level (12-13). I will place my stop-loss below 11.8 . My short-term target for TASR is 22.

AIRT:

• This daytraders' favorite stock has consolidated well last week since surging 25% on 11th and formed a nice bull flag on this chart. Looks like to me it is ready for another run-up soon and 20 is going to be its next stop. I'm interested in buying it at around 16.5 on Mon with a stop-loss below 15.8 .
• http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=airt&sid=0&o_symb=airt&freq=1&time=5

ABLE:

• I took my profits on Fri since I dont want to hold it through the weekend. Its chart still looks bullish but MACD&Stochastics are reaching the ceiling. I anticipate an intermediate top on ABLE followed with some pullbacks next week after this over-extended rising trend. I'm looking at 15.5-16 as its short-term resistance and I prefer to only daytrade this stock from now on to keep riding the tide while securing my profits.
• http://clearstation.etrade.com/cgi-bin/details?Symbol=able&Refer=http://clearstation.etrade.com/

GRU:

• This momentum stock has formed a long, extended bullish flag since it bounced off from its support (15-16) the second time on 8th with large volume.
• Weekend News: IAC to buy AskJeeves with takeout price $32+/share. I suspect buyout rumor on GRU will probably bring traders and momentum players back into the stock and serve as a catalyst to push it to new highs in the coming week.
• I'm interested in owning it on Mon and hold it for 30+.
• http://www.thestreet.com/_yahoo/tech/internet/
• 10214006.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
• http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=gru&sid=0&o_symb=gru&freq=1&time=5

Stay tuned on more updates throughout the week and good luck!

Portfolio Scoreboard for the Week

Symbol L/S EntryPrice CurrentPrice(Or ClosedPrice) Profit% Sentiment(Or Action)


PACT L $8.06 $11.18 40% closed

PACT L $9.87 $9.46 -4% closed

FORD S $9.30 $8.71 7% closed

ISON L $2.82 $3.21 14% closed

ISON L $2.85 $3.26 14% closed

ABLE L $9.10&$8.71 $13.91 55% closed

CFCI L $21.71 $21.66 0% BUY&HOLD

TASR L $12.62 $12.52 0% BUY&HOLD


Picks for next week will be posted on Sun night. Stay tuned and Have a great weekend!

CFCI's IBD Run

Btw, for those who are interested in IBD stocks, CFCI will probably run again tomorrow due to the hype of its IBD ranking for the next week. It touched its short-term ascending support line today (21.5) and bounced from it, I would like to own it tomorrow with a stop-loss at below 21.5 . My short-term target for it is 28-30.

ISON, PACT, TASR Updates

I exited ISON at 3.21 on Mon and bought back today at 2.85. Its chart looks very bearish now and it closed below its 200-day MA (2.98) today which tells me there are more downsides ahead if there is no PR tomorrow. The management has been good at supporting their stock above certain levels in the past months, and this is the reason I am in today for the possibility of a PR tomorrow. If there's no news in the morning, I'll be out promply and looking for re-entry at around 2.5.

PACT broke 9.5 today with small volume and reached as low as 9.22. I got out at 9.46 since it hit my stop-loss. It is now approaching its first major support area (9-9.2) which it has to hold in order to continue its recent upward momentum. I'm looking for a re-entry at this level and I will hold it till next week to see what happens next.

TASR has been on my radar for 2 weeks already and I'm looking to take a long position tomorrow at around 12.5 . Although this stock has been badly beaten by safety concerns and negative publicity several times, it's still clearly the leader in its market with great balance sheet and high rev growth. Moreover, the high short interests in this stock have the potential of being squeezed severely due to any good PRs. I believe the downside risk at this point is relatively slim compared to substantial upward potential in the coming weeks. So my advice is get in now and hold firm. Patience will be rewarded:)

Good Luck and Have a great weekend!

ABLE & GEOI new 52-week high tomorrow?

With crude oil futures trading at new highs ($56.46/barrel), I predict ABLE and GEOI will make new 52-week highs this week. The momentum in these two stocks is so strong at the moment that you can make a profit even if you bought high. This is the primary reason I'd like to trade those stocks with strong momentum and high relative strength. You dont have to worry too much about your trade and feel comfortable holding it as long as you took the right direction. (Trading Strategy #2: Ride the tide till it turns and Never go against the momentum)

If ABLE hit 15 or higher tomorrow, I guess it will be another ANTP for 2005. We will see if this is true or not by the end of the week. Make sure you are on board this time if you missed ANTP on Dec and Enjoy the ride!

ABLE = next ANTP?

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=antp&sid=0&o_symb=antp&freq=1&time=7

Crude Futures Chart

http://www.wtrg.com/daily/clfhl.gif

Updates on PACT

PACT gapped up on Mon, broke 11 for a short period of time but failed to stay above it. I sold into the strength when it broke 11 for the first time. As I've said on Sun, any gap up with no significant cause (news) would most likely fail to hold eventually. PACT is no exception:) As I predicted, it could not stay above 11 due to lack of news and momentum and retraced back to 10.5 afterwards. Today it fell again to as low as 9.75 which is not what I was expecting for. But taking into account of the widespread bearish behavior of the general market, such a drop should not be a big surprise. I bought back some of shares today at 9.87 and I will keep a close eye on it tomorrow to see if it can maintain its upward momentum. Until I see a clear breakout of the current resistance around 11, I will prefer only to day trade this stock. For those intermediate-term investors, if it can not break 10.5 in the coming two days and stay above it, it is time to take your profits and run:) If that is the case, I will have the new entry point for you when the chart says so. Good Luck!

For the Week Ahead

PACT:

• Buy on any dips and hold till earnings release date, which I believe is gonna be during the last week of March. As I've said two weeks ago, I expect it to make new 52-week high by the end of the month.
• However, if it gaps up big one day during this period of time, I may decide to sell and buy back lower when it retraces.

ISON:

• Bought it at the bottom on Fri and I'm looking at high 3s to unload.
• http://biz.yahoo.com/bw/050311/115504_1.html
• http://finance.messages.yahoo.com/bbs?.mm=FN&action=
• m&board=8728828&tid=airt&sid=8728828&mid=24989

TASR:

• I'm interested in buying it at this support level 12.5 - 13.5 . From its historic chart patterns, I can see this support level has been strong for the past whole year. Every time it dropped to this level of support, it held and retraced. Thus I think this is a great and comfortable point to enter as a long either for swing trading or intermediate-term investing.
• http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=tasr&sid=0&o_symb=tasr&freq=1&time=9
• It is recommended as a long with price target of 22 in the following forbes article. I personally believe it will hit this target within 2 months at the latest.
• http://www.forbes.com/strategies/2005/03/04/
• cx_rm_0304maltbie.html?partner=yahoo&referrer=

CFCI:

• This chemical manufacturing company reported superior earnings growth for Q4 and Y2004 on Mar 1st. http://biz.yahoo.com/prnews/050301/cgtu071_1.html
• It is ranked #1 in IBD100 this week.
• I'd like to own it next week at a price as close to 20 as possible. If it gaps up big on Mon which is highly possible, I will wait for pull back and the right signal to jump in. My short term target for CFCI is 28-30.
• http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=cfci&sid=0&o_symb=cfci&freq=1&time=7

ABLE:

• I still believe crude oil futures will continue its strong momentum over the next few weeks and I'm looking at $58.5-$60/Barrel as the intermediate-term top.
• ABLE topped at 14.4 few days ago and formed this nice smooth pull back line with relatively small volume. http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=able&sid=0&o_symb=able&freq=7&time=18
• I expect it to outperform and maintain its upward momentum as long as crude futures stay above 50 mark. So my strategy for ABLE is to do some bottom fishing everyday next week and accumulate at these price levels (8-10). I believe 8-9 is the short-term bottom for this stock and any major bounce with large volume from this level will take it to 20+.

I will keep updating with new picks throughout the week. Stay tuned and Trade well next week!

Portfolio Scoreboard for the Week

Symbol L/S EntryPrice CurrentPrice(Or ClosedPrice) Profit% Sentiment(Or Action)



PACT L $8.06 $10.06 25% BUY&HOLD

FORD S $8.75 $9.00 -3% closed

FORD S $9.3 $8.48 8% HOLD

AIRT S $16.6 $14.02 15% closed

AIRT L $14.01 $16.4 17% closed

ABLE L $11.56 $12.8 10% closed

ABLE L $9.4 $10.1 7% closed

ABLE L $9.1 $9.22 1% BUY&HOLD

ISON L $2.82 $2.97 5% BUY&HOLD


I will update next week's picks on Sat or Sun. Stay tuned and Enjoy your weekend!

Updates on PACT & AIRT

For AIRT tomorrow, I'm looking to cover around 14-14.5 if NAS continues selling off in the morning. Although it has been struggling to find buyers for weeks till now, I believe dip buyers will come back at this price level and may push it back to 16-17 on large volume soon.

PACT had a great move today on 3 times of its average volume is telling me its run to new 52-week high has started! I expect it to consolidate again for a day or two then break to the upside with more momentum and strength. Keep a close eye on it and dont miss the train when it leaves the station. Final Call! :)

Trade Well!

FORD - Too Early To Short?

Yesterday I exited my short position on this one and I have been closely monitoring it to find a good price to re-enter as a short. Today it opened above 9.3 but dropped to as low as 8.72 afterwards. Although it dropped around 20 cents from previous close (9.10) and 60 cents from today's high (9.45), I can see strong support at 8.7-8.8 and shorts just couldn't push it down below this level.

So here's what I'm gonna do. Long FORD here at 8.7-8.8, put a stop-loss at 8.48 and see what happens. If NAS holds 2080 well today, there's a great chance that it will break 2010 soon thus FORD will probably follow it to break to new 52-week high (Many shorted FORD between 8.4-9 and most of them will cover if NAS breaks). However I do not think it will break 10 from chart pattern and overbought stochastics, so high 9s will probably be a great spot to go short from my experiences. We will see what happens soon:)

ABLE & GEOI

These two oil stocks have been great % gainers on my watch list for days now. The momentum in oil stocks recently is very strong amid surging oil futures. Since crude oil futures price is still hovering around $53-$54 per barrel with no sign of turning, I believe it is going to hit $60/barrel soon which will probably attract more money injections into oil stocks like ABLE & GEOI.

In the press released on last Fri, GeoResources (GEOI) reported Fourth Quarter earnings of 10 cents per share versus 1 cent per share a year ago, profit for 2004 more than doubled to 30 cents a share compared to only 12 cents per share in 2003.

http://biz.yahoo.com/ap/050304/earns_georesources_1.html

In the press released on Feb 25th, Able Energy (ABLE) reported record sales of $18.9 million for Fourth Quarter as compared to $11.8 million a year ago. The company reported net income of 3 cents a share versus a loss of 20 cents a share year ago.

http://biz.yahoo.com/bw/050225/255384_1.html

I expect these two stocks to outperform in the coming days and continuously making new highs. I recommend to buy on any dips and hold for a bigger move. Good Luck!

Updates on FORD, PLMO

Got stopped out on FORD this morning at 9. However, I think its rise in price today are primarily due to short-covering and some momentum players speculating its breaking out of 52-week high. Apart from that, I see no indications or upside potential at this point. So I will closely monitor its movement and re-enter as a short tomorrow morning.

PLMO failed to break Fri's high (24.5), instead, it broke out its recent support at 23.5 with large volume. (Low high Low low pattern) This pattern confirmed there's more time needed for it to consolidate or maybe to re-test 21.5 (intermediate low) again. As I said before, always wait for the right signal to get in. Although you may miss a buck or two in this case, it does lessen your risk and saves your time. I will let you know when the next buy opportunity arises.

Stay Tuned on more updates and Trade Well!

PLMO - Up From Here?

After continuous downward drifting since mid-Dec, PLMO has been on my radar for days now. (Trading Rules #1: buy on extreme weakness, sell on extreme strength) It reached an intermediate low (sub 21) on Feb 10th, re-test that low on 24th and successfully bounced off from it on the following days; Now it formed a bullish flag with 25 as breakout point. Thus for swing traders, day traders and intermediate term investors, a break of 25 on above average volume is the signal to board the train. For those who want to gain a little bit more with a potential loss of 2%, get in now and set your stop-loss at 23.3. If it does break 25, I expect it to fill the mid-Dec gap somewhere between 35 and 40. Good Luck!

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=plmo&sid=0&o_symb=plmo&freq=1&time=6

AIRT - struggling to get momentum back

Its inability to stay above its 50-day MA and break 200-day MA for the past few days tells me
there's more downside ahead; it lost momentum completely and attracted little buyers;
RSI has not reached oversold levels yet. For swing traders, the enter price is as close to 17 as possible, you need to feel when buying stops and get in promply. Remember, the higher you went short, the more profits you would get AND the less you would lose in case of a triggered stop-loss. For day traders, go short upon break of 15.88. I'm looking at 15 or lower as my cover price depending on the strength of support on those levels. My stop-loss will be at 17.

http://stockcharts.com/def/servlet/SC.web?c=AIRT,uu[h,a]daclyyay[db][pb50!b200][vc60][iUb14!La12,26,9]&pref=G

Shorting Opportunity on FORD

FORD has been on my radar for 2 days and today's action is the signal for me to go short.

• It failed to break yesterday's high on large volume while Dow and S&P500 are making new highs; longs even could not push it through 9 which is a very bearish sign;
• It attracted little buyers' interests whereas shorts lined up all day long to accumulate their short positions in key resistence levels;
• Its up-volumes in the past few days were significantly lower than the previous ones (in Jan) which shows less money flows into the stock;
• Insiders have been selling since Jan and unloaded +20% of their holdings between 6.5 - 8.4; Stochastics are reaching overbought levels;
• NAS's and RUS's weak performances and inabilities to break out their bearish channels indicate that bears are still in dominance
• http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=ford&sid=0&o_symb=ford&freq=1&time=6
• http://clearstation.etrade.com/cgi-bin/details?Symbol=ford&Refer=http://clearstation.etrade.com/cgi-bin/delisted_symbol%3fSymbol%3dfort%26Event%3ddetails

I will use $9.0 as my stop-loss to cover and re-open positions later if this happens. Otherwise, I'm looking at 7.6 as my short-term closing point.

Risk vs Reward : -3.5% vs +15%

Time Frame: Three Days

First up is PACT

I expect PACT to make new 52-week high by the end of March for the following reasons:

• In a press release issued on Feb 28th, PacificNet (PACT) raises guidance for fourth quarter and fisical year 2004. Its stock was trading up as high as 45% on three times of average volume. --- http://biz.yahoo.com/bw/050228/285722_1.html
• If you take a look at this chart, PACT topped at 14, 12, 9 respectively within the past 3 months and these patterns formed a decending trend line which has kept downward drifting till it finally broke out on Feb 28th. The broke out point was 7 as you can easily see from the chart. Normally, breaking out a typical decending trendline on large volume is the signal for traders to long the stock while shorts to exit, and vice versa. Obviously in this case, the news served as a catalyst for this break-out to happen. --- http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=pact&sid=0&o_symb=pact&freq=1&time=7
• Next thing to look at is MACD and Stochastics. As we can see from this MACD diagram, the blue line (slow signal) and red line (fast signal) have started turning and pointing up, fast line is slightly crossing the blue one which signals change in the stock's price behavior. Stochastics has also improved and it is accelerating to the upside BUT below overbought levels. --- http://clearstation.etrade.com/cgi-bin/details?Symbol=pact&Refer=http://clearstation.etrade.com/
• Everything looks good so far and we need to check one more thing - insider trading. When you invest on a stock or just swing trade, insider trading (SEC filings) is the essential info you need to keep an eye on frequently. From this link, I can see the most recent Form 4 was filed in Jan by Sino Mart Management Ltd. It is a 10% beneficial owner and it acquired shares ranging from 6.5 - 7.4. There were no insider sales on the filing. --- http://edgar.brand.edgar-online.com/default.aspx?sym=pact

Now, back to this 5-day chart --- http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=pact&sid=0&o_symb=pact&freq=7&time=3 I expect PACT to consolidate for another day or two within the range 8 - 8.5 before the next big movement. I am looking to accumulate at this level with a stop-loss just below 8. The short-term potential gain is +70% vs potential loss of -5%. Is it going to be great short-term long candidate? We will see how it works out within weeks. Have fun trading!