There is a set up for clh and a June low, effective stop loss
placement at 125, or 139 if you wanted it a bit closer if it doesn't
Same could be said for ghg on June lows also. Also on wal. T'is the
season to watch for this pattern. Tax loss selling.
May lows should prove effective stops for many stocks, eg jet. jbm
This does not mean they will continue up, but if you buy, you know what
to do if the May low does not hold.
snn, one of those stocks where the ex div date will determine for you
the date of the high, see the announcement. I try to learn about
markets by seeing what happens to the chart on days like this, which you
know about in advance from the announcement.
mia, funny how those mid points play such a part in valuations, and
announcements so often push a stock into those mathematical points. mia
historically oscillated between extreme high and low to create a mid
point price where another coy seeks to take it over. Note the crossing
of tops - good patterns to watch out for, one way of finding them is to
watch the rolling year records, 52 week new highs list.
hcn just made a similar break, observe on the wkly and mthly chart how
past lows became a top. These two are now in hindsight of course, and
the purpose of these emails is to see such moves before they occur,
(tho' you can only learn it in hindsight),
therefor one could watch *bca* now for any move to 52 week new highs,
signaling a likely move to its mid point of past extremes, roughly a
dollar move should it happen. (If you are trading it, patience
required in my view, wait for the break, and we use a stop loss in case
the break does not follow through, under the previous weekly low, (a
double bottom at present), which can happen on occasions, though in my
experience, these chart shapes are mostly good ones).
Put hcn on the watch list for possible new 52 highs also.
Could be looking at a triangle on ncp, they often bring news at the
breakout, reliable pattern to buy on a break.
anx is now up at 39 cents for the fourth time - on its monthly chart you
will see that this price is the mid point of past extremes, so there is
another opportunity. In a perfect world it would be nice to see the
stock retrace slightly, then bust thru. Biotech stocks are spec stocks
though, and I try to trade these a little differently to those with more
stable earnings. By that i mean, bio tech stocks usually top out on
announcements with a spike, stocks with earnings do too, however those
stocks with earnings will exhibit a more reliable trend, with their
announcements part of that trend. I hope I have explained that okay for
you to keep in mind.
apn fourth time at tops. Advertising type companies are breaking like
this (fjx, pbl, rup, sbc, wan) - reliable sign that the business cycle
has some years to play out yet, and that we are only in the beginnings
of the current decade cycle. Other economic forecasters do not
understand how to read the market like this, and will be wrong in
calling the economy down for a few years yet.
other trending stocks to watch,
amp, ann, bil,
bsa, (bit on the thin side)
emi > 16 cents
lkp (again too thin, but see what develops)
srv - again on the thin side, however some stocks should be watched to
help guage the business cycle position. srv provides serviced offices i
believe, so any further move across tops would help you confirm the
strength of the business cycle upturn. Demand for serviced offices
giving srv profitability has to indicate improved business earnings, and
hence impossible for the business cycle to turn down just yet. (And you
should have learnt form the business cycles class, that the earnings
improvements will ultimately end up with landlords charging higher
rents, which means higher land price, which means ultimately a peak to
the property cycle.) See how the chart develops, which will move
upwards should increased earnings develop naturally. Other market
forecasters neglect this style of reading the tea leaves. It is a very
effective way of guaging the next 12 months business activity. Markets
are very successful in discounting the future this far ahead at least
sto, watch the past monthly tops. Some years of accumulation there
inp, though this sort of sideways move, then a break, say above 87, I
have found less reliable, so with some reservations I include it
bbb > 31 might be of interest
and with stocks like dgh still breaking new highs, it is far too early
to call a property led downturn is it not ?
observe how 27/5 date seemed to affect oil and oil stocks (ppp, roc, hdr
into early June buying) - watch the obl/saudi/oil connection for the
years into 2007 8 and 9 - more coming to you later on that one.
MIA - PDF
BCA - PDF