Tuesday, May 24, 2011

Tuesdays Game Plan

Longs:

WAG, MCD, ABT, ACE, TRV (61.00), WLP, ORCL (33.00)

Breakouts:

RTN>50/00, AKS, VLO<25.50

Volatility:

Shorts: WFC, INTU

Notes:

Crappy market environment, with contradicting signals. This market is bearish to neutral in the short term as all my market internal charts are pointing south. However, we remain in a bulllish market and anything can happen at this level. Shorts can get squeezed really hard and really fast making this market very difficult to trade.

VLO: Shakeout was on below average volume telling me that the stock might not have the fuel to rocket higher yet. If prices retest the 25.50 level, a breakdown is possible.

ACE: Saturation play as the stock has been declineing on descending volume indicating that it might be running out of fuel. It is also approaching support at 67.50.

TRV: Falling on below average volume and is approaching a key level of support. 61.00 is the level to watch.

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