Blog description

My photo
A place for friends to gather and view stock market charts, discuss technical analysis and market outlook. What is your Principal Asset? How can it be developed? Each and all should do their own due dilligence and homework before investing. And by no means should you use anything I say or show here as a sole basis to buy or sell securities as everything is for educational experience only.

Thursday, August 14, 2008

Wednesday, August 13, 2008

Zion Bancorp

Someone once correctly answered the age old question, "How low can it go?" by rythmically stating $0.00. In the case of Zion looking at the longterm chart $0.97 may apply. What does come to light are the stops marked in dotted blue one can use if bottom fishing calls.

Looking at a 2 year chart the 50% retracement $58.67 and the 38.2% retracement $42.87 acted as major support areas on the way down and will act as resistance on the way up.

The 30 day shows a great setup for a call trade with the stop being slighty beneath the blue dotted price line $24.98.

This price line could actually be used as a pivot point to get short for the fall back to $17.28 with the only support being the fib line $24.04.

Either way very tight stops should be implored.

Tuesday, August 12, 2008

Level 3

Thought you might want to take a look at Level 3 communications.....
Pay close attention to the volume tinted in green. This is indicative of the entire communications group and it's difficult to see much more upside....

Monday, August 11, 2008

Bull trap...Don't be a sucker

The huge run up is setting up for disappointment into earnings for both LOW and HD.......
At least the LOW move is backed up with decent volume. Better to take profits here and hedge to the downside for some consolodation......

AZO, PG, and semi-conductors

AZO appears to be forming the right side of a cup. Question is will it retrace off of $140.29 or continue higher? A handle can retrace as much as 50% of the cup which would put a possible target of $121.68. Bottom line is AZO is an "on the move" volitile stock. Perhaps a play here could be a Long Call leaps and 4-6 month out $120 Puts.
PG is nudging up against the underside of a long-term support line setting up for a great short opportunity with a very tight stop. If PG pulls back away from this line it will take out the previous lows at $59.68. So $60 Puts 4-6 months out should be in order with a tight stop at $70.36. Everyone is raging about the semis being the leadership of old that fortells the tech market and therefore the overall market. Some are postulating this move is the catalyst for things to move higher. Well the last two weeks has been a move off of lower levels and appears to be a reversal of trend. HOWEVER, is it coincidence the SMH perfectly touched the 50% retracement line? Can you say BULLTRAP............

The overall trend is still down........