Sunday, December 12, 2010

Ideas for Monday, December 13th, 2010.

AAU finally triggered a buy on Friday. However, I think that this stock can be bought on a dip to $4.25 for a swing trade or day trade on a break out of Friday's high.

RDCM: looking for a break out of $10.06. However, it crucial to look at volume and time and sales before making a decision to enter this stock as it is very thin. So you need to see volume coming into this stock.

CYD, DECK: good for day trades if you missed Friday's swing entry. First trade to look for is a break of Friday's high. However, it is crucial to have confirmation from time and sales since break outs have been somewhat tricky especially in higher priced stocks like DECK.

MGIC: looking for break out from an inside play plus a high level base for swing trade. This is easily my favorite set up going into next week.

GPOR, RVBD: Day trades.

HDY: I absolutely love this set up. Been watching it for weeks now. Had to include a weekly chart of the set up I'm looking at:

With this set up I would be looking to hold for a position trade. However, that is dependent on price action. I believe that this set will yield a big move!

ASYS: Day trade.

FTNT: Another fav. Looking for a break out of $34.00

CHTP: looking for a break of $5.50. I think that this one can be tricky. So make sure volume is coming in before entering.

GSL: Another favorite. Looking for a break of $5.10 to enter for swing trade.

LPSN, AUDC: Day trades.

SHZ, CMM: Break of $4.00 and $3.30 respectively for swing trades.

EZCH: Day trade from flag break out.

CIS: Day trade above Friday's high.

EXAM: Swing trade. Flag break out.

MCP: Swing trade. Not one of my favorites on account of weakness in other rare earth stocks like REE.

BSFT: Flag breakout looking for swing trade. One of my favorite set ups.

VPG: Break of $17.60 for day/swing trade. Alternative you can take a early entry off the hourly chart in anticipation of a break out.

VRA: Flag break out.

ENV, KONE: Flag break outs.

FN, OCZ: Day trade set ups. Two of my favs.

RDA: Swing long.

MOTR, GEDU, JASO, SOL, OINK, TGA: Day trade shorts.

JADE, REE: Swing short. REE I love as a short! However, I would need to see confirmed weakness in sister stocks like MCP in order to increase position size and commit to holding short for more than a day.

XUE: Speculative day trade long on a break out of the bullish hammer candle formed on Friday.

Like I said before, we are clearly in a bullish environment. Shorting should only be considered for those brief periods when the markets dip intra day before buying comes in with all its fury. Should not even consider holding short for more than a few hours let alone a day. On the long side, however, I recommend being aggressive with both leverage and holding for bigger gains until the markets start to flash clear warning signs.

Good luck and good trading!

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