Untited Parcel Service (UPS): Upgrade to Strong Buy at DB. The daily and weekly charts are both putting in topping patterns. Look to short on weakness. Brocade Communications (BRCD): Morgan Stanely upgrades to overwieght from equal wieght. Though the stock is near an area of support, it still has some downside to test. Look for shorting opportunties on weakness. Brandon
Polycom, Inc (PLCM): The stock was cut to attractive from Strong Buy by Weisel. The weekly chart has something of a double bottom support area. Look for buying opty on strength. General Motors Corp (GM): Bank of America downgrades GM to Market Perform from Buy. The stock is at an area of major price support. Look for buying opportunities on strength. Celestica, Inc (CLS): CFSB cuts their rating to buy from strong buy. The stock is currently still in a general support area on the wekkly chart. Its a tad bit stretched on the charts. Look to buy strength. Adrx Corp (ADRX): The company has recieved FDA aproval for generic Claritin. If ADRX opens ABOVE $22 there will be a trap in play, and traders can look for scalp buying opportunities off the open. As the day movs on, continue to watch how it holds its gap area, if it does well breakouts later in the day could provide general daytrading buying opportunities. Brandon
BRANDON: I HAVE NOT PLAYED BROKER UP/DOWNGRADES FOR 2 YEARS BUT USED TO FIND THEM TO BE A CRAPSHOOT. IS YOUR EXPERIENCE WITH THEM AT LEAST 60% WINNERS??
The futures are backing down here a bit. Please note that the 120 minute 20ema is currently at 1014 in the Nasdaq Futures. Brandon
Im getting a ton of PM questions and comments about the news reversal plays...so if its ok with everyone Id like to do a class in the ET Chatroom tonight at 9pm CT. It will take me 30 to 50 minutes and I will cover trading the setups I list here. Brandon
BRCD short works out very nice. Should be taking profits. Nice close on the gap too. I will talk about both types of trades in my class tonight on ET Chat. Brandon
Its pretty amazing to see S&P500 now at prices lower than it was in 1998 when we had Long Term Capital Managment, Asia and Russia to worry about. Everyone who bought into buy and hold, doing what "they were supposed too" over the last 4 years has lost money (probably over the last 7 because you add some every month, as your income goes up (such as peoples did from 98 to 2000) you put more in etc) dispite the biggest run up in history. Sad indeed. Whats even more sad is that its probably not even close to being over. If you use GAAP, the Nasdaq 100 would be priced at historical highs at 400! FOUR HUNDRED!! And the fools on CNBC still ask every day..is this the bottom? Tonight all they could talk about was how afraid everyone they talk to is, and his kind of fear is what makes bottoms. Newsflash! As long as people are more afraid of missing the bottom than of going broke, we will never bottom! As long as consumers debt is near all time highs, we will never bottom. We have a long ways to go. Well..the good news is that good traders are doing just fine. Good traders are the ones who have an edge and know what that edge is. The best traders I know pick a few setups or markets and learn them inside and out. Its like picking a major in college. Used correctly trading off News can provide traders a HUGE edge. If you want some proof look at my most recent ET Thread News You Can Use. http://www.elitetrader.com/vb/showthread.php?s=&threadid=6795 Tonight in the ET Chatroom I will be sharing with members of ET my News Setups and Tactics. I wont BS you, I wont give you a sales pitch. After you come to the class, you will be able to trade what I give you tomorrow. You will be able to drop every trading site you are a member of if you want. You will have the TOOLS to make money. You have my word that this will be the best lesson ever given in the ET Chatroom. It will also be better than what you get at most $1000 seminars. I dont ask for anything in return. The class will start at 9pm CT in the Elite Chatroom. See you guys there. Brandon
Yahoo is of course the big story today. The problem with the "big one" is that it is often very unpredictable. So, we will avoid yahoo. There was a good amount of technical damage done yesterday. Everyone is talking about we are at panic levels and such, I would not count on it. The next big theory is that we will at least get a short covering rally. That is, I think even less likely. In the last few weeks we have already seen 2 rather substantial short covering rallies. Given this another one at this point is unlikely, and rallies are will most likely be sold into. We don't have much for a gap, and don't have much for news that I am particularly interested in. Given this I would expect a slow morning with purhaps 1 or 2 trades. The afternoon will probably be more productive, and I would anticipate having 2 or 3 trading opportunities then.