Tuesday, August 31, 2010

Trade Ideas update....

None of the stocks that I suggested for buys today have triggered so far.

However, AMRC has been a real star performer moving up over 5% from my suggested buy point ($11.31). So this is a hold. BORN on the other hand has not really moved and with JKS, the leading Chinese IPO, poised to break down from a bearish pennant, I would not continue to hold BORN unless it moves sharply higher into the close of trading!

I still think the markets are poised to bounce. I continue to see a good number of stocks setting up and break outs. In fact, SPRD, one of the stocks that I had highlighted as a stock to keep on your watchlist, broke out today on volume and is now up over 13%! With recent breakouts like RDWR, PAY and FOSL still working I am still fairly confident that we will see some sort of playable bounce here.

However, nothing is ever cut and dry in the stock markets. So in case the current trend follows through to the down side, CRUS looks shortable. It is currently forming a bearish pennant with a suggested entry below $15.00 and stop loss above $16.00. Target will be the $12.00 - $13.00 area.

Trading is not about certainties but about anticipating probabilities and appropriating risk accordingly. You need to be prepared not only for the more probable out come but also for the lesser! This way you are never caught off guard and in most instances prepared to make money.

Good luck and good trading!

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