friday watchlist, railroads and click to get big

update friday 11:53am - call on railroads not working out bad so far...

hmm, i am a little surprise today at the lack of volume and follow through today in the markets considering the blast up we experienced yesterday. maybe it will come tomorrow/friday. at any rate, it doesn't say much for the bulls. that's why the watchlist i am presenting tonight is dominated by short candidates. big surprise, right?

AAPL - watch to make sure how AAPL opens up and behaves relative the red highlighted resistance line and the thin blue uptrend line... also notice the decreasing volume.

ATHR has fallen below the blue highlighted trend line and has retraced to its underside.

NVDA - the red box here highlights the candle and volume from wednesday march 14 when we saw such strength and volume in overall market. the volume here isn't so bad, and the price action is horrible. NVDA is now trading under its 200-day moving average.

NYX - this stock is no stranger to us... again pay attention to the red box highlighting wednesday's and thursday's action - not so hot compared to the rest of the market...

and finally i am going to present 3 charts of railroad stocks. they too are were lame relative to the overall markets. they have enjoyed a nice run up over the last many months so maybe it's time they give back some of those gains.

BNI

CSX

UNP

trend line failures + chart request

these are mid-day charts so double check where they closed for the day...

i will be updating this post throughout the day - so check back often... also, if there are any charts you'd like to see, let me know.

LEH - nice volume!

ATI - keep your eye on it - it looks ready perhaps to fail again at the long term uptrend line - the yellow box discloses trend line details, and don't forget to review my previous post making the case for shorting steel.

ALL - more failing at the long term uptrend line! see all previous posting and charting on ALL here.

AAPL - potential to fail at the trend line - keep your eye on on the action in the red circle... the blue box highlights the gap down that has been filled. see all previous posts and charting on AAPL here.

BBD has behaved according to plan [see all previous BBD posting/charting here]. gap resistance highlighted by the blue box came into effect. also notice the negative divergence between price and volume highlighted by the red lines.

JOYG -red lines show negative price and volume divergence. a break of the short term trend line on decent volume could be a short signal. CAT is weak too...

OSG - here we see gap resistance at work, pathetic volume at the peak of the bounce, and finally this is good example of support/resistance lines originating at moving average crossovers [see this post] - the green line was drawn when the 50-day moving average crossed below the 200-day moving average (green circle). this line provided support before - will it hold this time?

RIMM opened up below the 50-day moving average today and at the time of this posting was still below. it hasn't been crashing with the rest of the market today - so that's one feather in the bullish camp. watch it here - its sitting on a short term trend line highlighted in blue.

watchlist | click charts for larger images

many stocks on my radar are sitting on their 50- or 200-day moving averages - i am expecting a bounce here over the next day or so, and then we should have a better idea of where the markets will be heading. here's what i'll be watching for the first part of this week:

shorts

AAPL's relative strength compared to the overall markets blast down shouldn't be ignored - that's why handle this one with care. but please do notice how it's capped by the 50-day moving average and how it has gapped down below that super long term blue uptrend line going back to the low of the day on 22 dec 2003. tracing back to the underside of uptrend lines and failing to break back above often provide good shorting opportunities


HOC - i like the negative divergence here between price and rsi, barring any breakout above the resistance line on big volume.


MBT - this gap down and the resistance at the 50-day moving average make this one to watch.


wait for the retrace (hopefully on low volume)

BBD - i charted this stock a while back and look how far it's come down! this is on my wait for a low volume bounce before shorting again. $38ish, the bottom of the gap down should provide decent resistance - it it passes that, perhaps wait for the 50-day moving average.


LRCX - charted earlier too! pretty straight forward here.


reluctanct longs

NVEC could move above (or gap above) the downtrend line, the 50-day moving average and the 200-day moving average in one fell swoop... or not. one to watch!


XING is a great, long term cup and handle pattern - and it has just pulled back - i may buy if it holds support here.


interesting but not sure

XLE