Sunday, March 7, 2010

Some stocks to watch out for tomorrow

Before I start with the set-ups, I feel it imperative to state that I feel the markets are way overbought. Personally speaking, I would not be chasing any momentum stocks and would recommend not doing that. If you see an opportunity in the momentum stocks, try making it a day trade or at least, take some profits off the table before the end of the day. For my take on the present scenario and how to play it, please see here.

I decided to do both a long and a short list this week as if/when the market does pullback, why not make use of that as an opportunity too.

Let's start with the longs first.

UTIW - Watch out for a break of 15.70. Nice volume on Friday. 


OVTI - Nice move on Friday. Love the bullish volume pattern. Wait for a low volume pullback to 15.60 in case the market decides to consolidate.


RDN - A break of 10.60 and this would be good to go. Like the volume pattern. 


MTG - Finally, a close over 8 on Friday. Would like to see more volume come in. Has plenty of room to run here.


PAL - Nice break of 4.20. Volume seems to be coming in. I got out of this on Friday but it looks good to run some more. Oh well....


EGO - Gold play. Watch out for a breakout over 13.50


Now for a couple of short plays.

FSLR - Has rallied with the market but on very low volume. Nearing an important resistance. A low-risk short setup here.


CSIQ - Approaching important resistance level here.


I will be back shortly with another post looking at AAPL, GOOG etc. I want to keep this post separate as I don't trade these stocks as I find them a tad too "slow". However, these stocks have led the market superbly the past week or so, and thus it becomes important to keep an eye on them to get a sense of which way the markets are going.

Take care and good luck! Be careful out there!

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