Sunday, March 29, 2009

The Long and Short of It

Here are some stocks I'm looking at right now:

Long JBHT - I'm watching it!

I liked this one a lot on a broader market move until I saw the approach to the 200MA. I think I read somewhere that it's a bad idea to trade into big support and resistance levels. This makes sense to me and I'll wait until it moves up and look for momentum from the other industry leaders to help it break through nervous fundamentals.

The things I liked about this stock included the low volume Friday sell off. Maybe this was the general profit taking thing. I also like that it looks like it's going to gap up tomorrow above Friday's highs. I am going to miss the first hour of trading tomorrow but hopefully it will keep riding up and gain a little more momentum. The 5Ma is also trending upwards and it got a recent buy upgrade.

Short FST - The Order's in!

It's testing support at the 50 and 20MA and I like the feel of that falling RSI. If it busts through 50 that will make me feel good. The 5MA is cresting I believe and I'd like to get short tomorrow as the slope of that line approaches zero and then heads to the negative. The reason I'm getting short here despite the support levels and what I just said about JBHT is that these ones have been tested three times and each time the highs have been lower so I am expecting a bigger fall on this high probability entry. In other technical jargon the CCI is really high which makes me want to get short and there is a big MACD emphasis on the D.

The only warning flag was the low volume sell off which could be a sign of consolidation and strength. That being said, I want to fade the small gap at the open.

I've been thinking about the democratization of information, start ups and the 80/20 rule.

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