Stock Picker’s Delight

Leigh Drogen — Tue, 15 Dec 2009 05:52:05 +0000

The market has gone absolutely nowhere in over a month, oscillating around a rising 20 day moving average. While the broader indices continue to churn, some excellent setups to both the long and short side have revealed themselves. Instead instead of focusing on the direction of the overall market tonight, below are a bunch of the best setups i’m seeing right now. Many of these charts come from my momentum watch list, they aren’t necessarily the best performing stocks in the list, but the ones with the best risk reward setups going into trading tomorrow.

Sugar has broken out from a multi month consolidation in a big way. CZZ is a sugar play that should see the momo come in above 8.20

Get long above 25, pretty simple ascending triangle formation.

Red Hat broke out today but still looks like a good entry, stop out below today's low. This is also a major takover candidate. ORCL and IBM also on the momo list.

USO has come down onto the 200 day moving average and looks to be finding support. I would not get long until it hops above the 5 day moving average, but taking a stab in here with a stop below last Friday's low is a nice risk reward trade. The stochastics are very oversold.

Nice bull flag above the 50 day moving average. Get long on a break of the upper trend line.

Another ascending triangle pattern, get long above 17.75

RINO coming off major trend line support and the 50 day moving average. We've seen this tock take off twice now in the past few months after coming down to the 50 day. Get long right here with a stop below Friday's low.

VRX looking very similar to RINO, nice moves off the 50 day, get long here with a stop below Friday's low, or be a little more patient and wait for a break of the downtrend line.

CERN giving a nice opening to get long here off a break of the downtrend line. Looks like CERN just put in a big two month bull flag.

My system trade on GLD now has a stop one cent below Friday's low, for a great gain. But I would be tempted to step in here and take more shares with the same stop. The stochastics are very oversold, the trade may just be for a bounce, maybe 3 or 4 points, but the risk reward looks great.

STT one of my favorite shorts here, stop out above Friday's high.

CPLA needs to break 75.

GPN bouncing off the 50 day moving average with rising stochastics out of a bullish wedge formation, get long right here.

NFLX finding support at the 50 day, get long on a break of the downtrend line and stop out below the 50 day.

TUP looks like a good long entry above 49.20, stop out below trend support.

Leigh Drogen » GGB

Stock Picker’s Delight