Hello Traders,
Welcome to our inaugural trading newsletter. We plan to release this letter at least once a week, and it will contain many trading ideas as well as links to free videos and tutorial about technical analysis. Also, we have added several new technical analysts that will contribute to this newsletter. Not only do these technicians have a combined 75 years of technical analysis experience, but also two are nationally certified and accredited analysts.
If you have any technical analysis question or would like an opinion or an annotated chart send an email here. Additionally, we would love some feedback from readers, what do you like about the site? What do you not like about the site? What would you like to see more of, videos? Again, send your questions here.
Bullish Engulfing: These are one of my favorite trading patterns. If you are unclear how to trade these, watch this 20 minute video. Additionally, the Candlesticks: Explained and Demystified began shipping yesterday. It is 5 hours long and can play on any device you have DVD player, PC, and MACs (even iPhones!) We will have the table of contents explain everything by this weekend. $139 use the code “Harami” for a $15 discount.
Bullish Engulfing for Wednesday July 2, 2008 Link to 35 charts, and please give us a vote for the hall of fame on stockcharts.com. (it’s at the bottom of the page)
Catch the Wave: These are stocks from the simple trading strategy outlined in the “Trade Without Emotion: Master the Basics” DVD. Essentially, you’re looking for up-trending stock that are riding the MA(5) and MA(10), but you wait for the pull back to the MA(10) as the entry point.
|
Symbol
|
Last
|
%Chg
|
Vol
|
|
SGP
|
19.71
|
0.1
|
11392374
|
|
STZ
|
20.75
|
4.48
|
4716137
|
|
EGO
|
9.2
|
6.36
|
2260169
|
|
KG
|
10.45
|
-0.19
|
2182837
|
|
SAI
|
20.88
|
0.34
|
1984812
|
|
FINL
|
9.12
|
4.83
|
1745417
|
|
SBH
|
6.51
|
0.77
|
1692609
|
|
GSX
|
4.25
|
2.41
|
1597860
|
|
NPSP
|
4.54
|
2.02
|
1307026
|
|
COCO
|
12.06
|
3.88
|
1292764
|
|
PHTN
|
15.1
|
0.13
|
1090737
|
|
VVUS
|
7.15
|
7.04
|
1076717
|
|
CKR
|
12.71
|
1.92
|
1072894
|
|
AVR
|
4.79
|
8.86
|
1071585
|
|
NTT
|
24.75
|
1.85
|
984139
|
|
ENDP
|
24.25
|
0.25
|
967001
|
|
GRS
|
11.23
|
3.5
|
513096
|
|
NG
|
7.79
|
4.56
|
509655
|
|
EPL
|
15
|
0.54
|
427547
|
|
GPOR
|
16.72
|
1.52
|
332927
|
Penny Stocks:
ERHC (OYCBB .40) is an Energy company, which is an extremely hot sector. Today close formed a double bottom around the 40 cents mark, along with a nice like dragon fly doji. While the volume is low ($78,000 $ volume) and the trading is weak, I suspect we could see a nice move develop over the next two weeks. We want to be clear, this is not an overnight play as it could take a week or two to develop, if indicators continue to improve.
Additionally, the MACD and Full STO are turning upward. Currently, it’s riding support, and the next critical support is .36. If it breaks that area, it’s done. The top level resistance is .59-.61.
An ideal trading scenario that I advocate is to wait for a bottom to form – RSI, MFI, and Full STO to cross the 50 line with the MACD histogram flipping to the positive side. An entry at .44 and exit at .55 a few days later would yield a 25% gain.
AWVI (OTCBB .0015) While I do not follow the fundamentals, one of the subscribers alerted me to this play. It is a reverse merger play. From what I was told, they are acquiring Jim Palmer Trucking Co., which had $72M in revenues in 2007.
Okay, now for the good stuff! Support levels are .0011 and .0014, and it’s sitting right at .0017. All indicators are coming out of oversold conditions, so it has plenty of room to run.
Ideally, you want to watch for increased, abnormal volume with an open above yesterday’s close. If I was to get into this tomorrow and if the previous conditions are met, then I would enter at .0021, and exit at .0033 (right before the major resistance). This would be an increase of 57% or on a standard trade of $3,000 a profit of $1,710.
Sincerely,
Michael
http://www.tradewithoutemotion.com
