Steve's Trading Diary

Steve's Trading Diary - July 2009

7/16 Bought VCI on the positive trading on Thursday. It's just about ready to break out. It's coming up from a good bullish signal bouncing off the 50 day moving average. 7/17 It backed off. Give it another day or so. Use the T-line as your stop. 7/20 It moved up. We are reiterating this as a buy if it opens positive on Tuesday. 7/21 We had reiterated this as a buy for Tuesday. It can still be bought on a positive open on Wednesday. 7/22 It got a little bit worrisome on Thursday. It formed a Hanging Man/Shooting Star signal with the stochastics rolling over. If it opens lower on Thursday, close out the position. 7/23 Sell this on a lower open. 7/24 This is now a little bit "iffy". If you didn't take your profits on Thursday, be ready to close out the position if it starts trading lower on Monday. 7/27 It can be bought on a positive open on Tuesday, especially for the day traders. This has a very strong upside potential. It looks like the consolidation is over. 7/28 If you're ready to buy this as a day trade, put your buy stop at $8.80. If it comes up through that level, the Bulls would definitely be stepping back in. If it gaps up on Wednesday, buy it immediately. This is definitely a case of putting it on the scanner so if there is any activity, you will see it immediately. 7/29 It's trading sideways. If it closes lower on Thursday, you will probably want to close out the position. It needs to open and trade higher on Thursday to show that the Bulls have come back in. 8/7 It's starting to get toppy. It didn't close below the T-line but was very close. It needs to have a positive open on Monday to stay in it. Do not let it close below the T-line. 8/10 It can be bought on a positive open on Tuesday if you're not in this position already. Continue to hold. Use the T-line as your stop. 8/12 It's still in an uptrend. Continue to hold. 8/17 It stayed up above the T-line. Continue to hold. We don't want to see it trade below the T-line on Tuesday. That would tell us the Bears are still there. Use $13.60 as your stop. 8/18 It keeps slowly moving up. Continue to hold. Use the T-line as your stop. 8/19 It's still in a nice, slow, steady uptrend. Continue to hold. Obviously, use a close below the T-line as your stop. 8/20 It's still moving up steadily. Continue to hold. 8/21 It continues to move steadily upward. Continue to hold until you see a sell signal and a close below the T-line. 8/24 It's still in a steady uptrend. Continue to hold. Use the T-line as your stop. 8/25 It moved a little bit stronger on Tuesday than the past few days. Start watching for exuberant buying at the top and be ready to take some profits. 8/26 It's still moving up nicely. Continue to hold. 8/27 It's still in a steady 45 degree uptrend. Continue to hold. It formed a Doji/Hanging Man type signal. Continue to hold as long as it doesn't close below the T-line. 8/28 It's still an uptrend. Continue to hold. 8/31 It used the T-line as support and traded back up again. Continue to hold. 9/1 It closed right on the T-line. If it closes lower on Wednesday, close it out. 9/2 It should have been closed out on Wednesday as it opened below the T-line and traded down. It did have a Hammer type day so you can always buy it back if it forms a Morning Star type signal on Thursday.

7/29 Bought GD as it came up through Tuesday's close after opening slightly lower after the Morning Star signal on the 200 day moving average. Look for it to break through the 50 day moving average. If it does, it should head back up into the $62 to $64 range. 8/7 It continues to move higher. Continue to hold. Use the T-line as your stop. 8/10 It's still in an uptrend. It formed a Bearish Harami on Monday. It might come back and test the T-line as well as the 50 day moving average. If the market turns a little bit soggy, you might want to come out of it and see if it supports. 8/11 It closed right on the T-line on Tuesday. If it opens lower on Wednesday, close it out immediately. It needs to open higher and trade higher to stay in it. 8/12 It couldn't close below the T-line. It opened up and immediately traded higher. It can still be bought on a positive open on Thursday. 8/17 It should have been closed out on Monday with it closing below the T-line.

7/28 Bought ASH just as it came back up through Monday's close. Use the halfway point of Monday's bullish candle as your stop. This one is showing a nice pattern where it's breaking out from a Double Bottom pattern through the recent highs but doing it with a lot of volatility. That usually tells us the stock is changing hands a lot. 7/29 It got a little bit soggy on Wednesday. It formed a Doji. The decision is very simple. If it opens lower on Thursday, close out the position. It needs to open higher and trade higher to stay in it. 8/7 Continue to hold as long as it doesn't close below the T-line. 8/10 It's still in an uptrend as long as it closes above the T-line. 8/11 It's still staying up above the T-line. We don't want to see it trade at all below Tuesday's low of $34.50. If it trades back down below that level, it tells us the Bears are in control. Use $34.50 as your stop. 8/12 It didn't close below the T-line. Continue to hold. 8/17 If you didn't close it out on Friday, it should have been closed out on Monday with the gap down.

7/24 Bought FITB on the positive open on Friday after the Doji. This told us the Bulls had taken control. Continue to hold. We're still expecting the target to be somewhere in the $12 to $14 area. 7/27 It can still be bought. We're looking for it to move to the $12 to $15 range. 7/28 It came back a little bit but it was nothing to change the upward trajectory. It can be bought if it comes up through the $8.77 area on Wednesday. 7/29 Continue to hold. It should be in a breakout mode with the gap up off the Piercing signal. 8/7 It has consolidated over the last couple of days but hasn't closed below the T-line. It formed a Doji. If it opens positive on Monday, you'll want to start buying it immediately. That would be indicative of a good J-Hook pattern setting up. 8/10 It's forming a J-Hook pattern. Be ready to buy this on a positive open. Use the T-line as your stop. 8/11 It's still holding up and staying above the T-line. Look for a J-Hook pattern. 8/12 We've reiterated this as a buy for Thursday. Continue to hold as long as it doesn't close below the T-line. 8/17 At least half the position should have been closed on the Harami followed by a gap down. The rest of the position should have been closed out as it closed below the T-line.

7/23 Bought OFG on the positive on Thursday. Look for it to continue to move higher, especially off the Doji and the gap up. 7/24 It rested but didn't do anything to tell us the uptrend had stopped. It formed a Doji so we don't want to see it close back below Friday's low. 7/27 It continues to move higher. Continue to hold. At this point we don't want to see it close back below the halfway point of Thursday's bullish candle at around the $12.10 area. If it comes back down through there, it will probably come back down to test the T-line. 7/28 It's still moving up very nicely. Continue to hold. 7/29 It's continuing up nicely. Continue to hold. Just be careful because it's moving away from the T-line. If you see some profit-taking, you might want to take off some of your position. 8/7 Continue to hold as long as it doesn't close below the T-line. 8/10 It looks like it's trying to form a J-Hook pattern. Be ready to buy this on a positive open on Tuesday. 8/12 It stayed above the T-line. Be ready to buy this on a breakout to the upside. 8/17 If you didn't close this out on Friday, it should've been closed out on Monday on the gap down lower open.

7/17 Bought MBFI on the positive trading, but it came back and closed lower. However, the chart is still showing a Fry Pan Bottom pattern. Look for a Cup and Handle pattern to form. If it forms a Cup and Handle pattern, especially if it comes down to test the T-line, it should still be heading for the 200 and moving average. Continue to hold but we don't want to see it close below the T-line. 7/20 This can be bought on a positive open. The Fry Pan Bottom trajectory is still in progress. 7/21 It traded below the T-line most of the day but came back up on the close. It can be bought aggressively on a positive open on Wednesday. 7/22 It barely stayed up above the T-line. Continue to hold. Use a close below the T-line as your stop. 7/23 It moved up nicely on Thursday coming out of the Fry Pan Bottom/Cup and Handle pattern. Be ready to buy this aggressively on a positive open on Friday. 7/24 It's forming a little Cup and Handle pattern. It needs to open higher and trade higher. If it opens lower, watch it to be sure it stays above the T-line. 7/27 We reiterated this as a buy for Tuesday. Buy this on a positive open on Tuesday. 7/28 This was reiterated as a buy. It came up nicely from a Cup and Handle pattern. Continue to hold as long as it doesn't close below the T-line. 7/29 It's still coming out of the nice Fry Pan Bottom pattern. Continue to hold this as long as it stays above the T-line. 8/7 It continues to move up steadily. We're still looking for the 200 day moving average to be the target. 8/10 It's still in a nice steady uptrend. Continue to hold. Use the T-line as your stop. 8/12 It tried to trade up a little bit but formed a Doji on Wednesday. Give it one more day. If it opens higher on Thursday and starts trading up, buy it immediately. It's forming a J-Hook pattern. 8/17 It should have been closed out on Monday with it failing to come up through the T-line.

7/15 Bought CSIQ on the open. It gapped right up to the 50 day and 20 day moving averages and moved higher. It's forming a Scoop pattern which tells us it should move higher. We don't want to see it close back below the 50 day moving average at the $11.57 level. 7/16 It gapped up again. Continue to hold until you see a sell signal. 7/17 It's still acting well ever since it gapped up through the 50 day moving average after the Doji confirmation. Continue to hold until you see a sell signal. 7/20 It formed a Bearish Engulfing signal. It's still not in the overbought area. Give it a little bit of leeway but we don't want to see it close back below Monday's low. If it does that, it's time to be out of the position and waiting for the next buy signal. 7/21 It did open higher and trade higher like it needed to do. Continue to hold. Also, this can still be bought on a positive open. 7/22 It formed a Doji on Tuesday and a Hanging Man signal on Wednesday. If it opens lower on Thursday, close out the position. 7/23 It came up nicely on Thursday. Continue to hold. Use any trading below Thursday's low of $13.66 as your stop. 7/24 It's still in an uptrend. Continue to hold. At this point traders may want to close this out for profit if it closes below Friday's low of $14.91. 7/27 It's still in an uptrend. It's coming out of a J-Hook pattern. The solar stocks are doing very well right now. 7/28 Like a lot of the other solar stocks on Tuesday, it consolidated. However, it stayed above the T-line. Be ready to buy this on a positive open on Wednesday. 7/29 At least half the position should have been closed out on the weaker open. It closed right on the T-line. The decision is very simple. If it opens weak on Thursday, close out the position immediately. 8/7 Continue to hold until you see a confirmed sell signal. 8/10 It's still in a nice strong uptrend. If you're not already in this position, it can be bought on a positive open on Tuesday. The nice J-Hook pattern with a gap up tells us there could still be more upside movement in this one. 8/11 Be ready to close this out on a lower open on Wednesday. 8/12 It had a Doji type day. It needs to open higher and trade higher to stay in it. If it opens lower, close out the position. 8/17 This should have been closed out with it closing below the T-line.

7/29 Bought OVTI on the positive trading on Wednesday. It can still be bought on a positive open on Thursday. It should be breaking out of the J-Hook pattern. At this point use the T-line as your stop. 8/7 It should have been closed as it closed below the T-line. But watch to see if it's doing bottoming action before its next move up. It can be bought if it goes up above the $12.70 level. 8/7 It should have been closed as it closed below the T-line. But watch to see if it's doing bottoming action before its next move up. It can be bought if it goes up above the $12.70 level.

7/27 Bought ENER on the positive trading on Monday. It stayed up above the 50 day moving average. It formed a Doji, which means you will want to start buying it immediately if it opens positive on Tuesday. 7/28 It consolidated on Tuesday but didn't do anything to change the upward trajectory. Look for positive trading on Wednesday. If it comes back up through the $15.50 level you will want to be buying it. That would usually mean that the next strong move was ready to start. 7/29 It's bobbling along the 50 day moving average. It needs to trade positive. Use the T-line as your stop. 8/7 It should have been closed out as it gapped down and closed below the T-line the other day.

7/24 Bought SQNM on the positive trading. It's still confirming the Fry Pan Bottom breakout. Continue to hold. At this point use Friday's open of $5.15 as your stop. If it comes back down through there, you should be out of the position. 7/27 Continue to buy this on any positive trading on Tuesday. 7/28 It showed profit-taking. If it comes up through Monday's close, it can be bought aggressively. That would tell us it should be moving up strong. 7/29 This was reiterated as a buy if it opens positive on Thursday. It still has the potential to come up and test the 200 day moving average. 8/7 It should have been closed out as it opened below the T-line.

7/22 Bought MICC as it came back up through the previous day's close after opening lower. It's still showing a nice Fry Pan Bottom breakout. Continue to hold. Use Wednesday's open as your stop. If it comes back down through there, you will probably want to be back out of the position. This stock has the characteristics of having a very strong upside move. 7/23 It continued a very strong up-move coming out of the Fry Pan Bottom pattern. It broke out nicely. 7/24 It gave back some of its profits on Friday. If it opens lower and trades below Friday's low of $72.03, close out the position and look for it to come back and at least test the T-line. 7/27 It can still be bought on a positive open on Tuesday. You might consider looking at the calls also. 7/28 It formed a Belt Hold/Bullish Engulfing signal. It used the T-line as support. Buy this one aggressively on a positive open. 7/29 It's still trading sideways after its big move up from the Fry Pan Bottom pattern. Look for it to move sideways before its next move up. 8/7 It should have been closed as it closed below the T-line on Friday. It can be bought on the next positive bullish signal.

7/21 Bought SPPI. It did gap up. Any time you see a stock gap up above the previous day's open with the stochastics coming up, you should want to buy it immediately. That shows you the Bulls are still in it with a lot of strength. 7/22 It formed somewhat of a Bearish Harami. Continue to hold but if it trades back below Wednesday's low of $6.25, you will want to close out the position. It needs to open and trade higher to stay in it. 7/23 It consolidated but it wasn't anything severe. It was indecisive. We don't want to see it close below Thursday's low of $6.16. If it comes down through that level, close out the position. 7/24 It's still in a positive mode. Continue to hold. Use the T-line as your stop. 7/27 It can be bought on a positive open. It's forming a little J-Hook type pattern. 7/28 It's still in an uptrend. Continue to hold. Use the T-line as your stop. 7/29 It's getting a little bit soggy but is still up above the T-line. Use the T-line as your stop. 8/7 It should have been closed as it closed below the T-line on Thursday. But now it can be bought again if it opens positive. It used the T-line as support even though it closed slightly below it for only one day.

7/20 Bought EBS as it went positive on Monday. It's coming up off the 50 day moving average. The next target is the 200 day moving average. 7/21 It's still coming up nicely off a bullish signal on the 50 day moving average. We're still anticipating the 200 day moving average as being the next target. 7/22 It got a little bit "iffy". Use the halfway point of Tuesday's large bullish candle as your stop. If it closes back below the $14.05 level, close out the position and wait for the next buy signal. 7/23 It held up well. We're still looking for a breakout to the upside. Use the T-line as your stop. 7/24 It's still moving up nicely. Continue to hold. Use Friday's open of $14.50 as your stop. If it comes back down through that level, you would want to be out of it because that would tell us the Bears were definitely in control. 7/27 It's still moving in a nice uptrend. Use the T-line as your stop. 7/28 It looks like it's resisting at the recent highs. It needs to break out big or it's time to take some profits if it starts selling off on Wednesday. 7/29 It showed some good strength on Wednesday. It can be bought aggressively on a positive open, especially if it gaps up above Wednesday's high of $15.09. If it opens at $15.10 or higher, buy it aggressively. That would mean it should move up to the 200 day moving average. 8/7 It should have been closed out on Thursday. We had identified that it could form a Kicker signal on Friday, which it did. If you still own it, continue to hold.

7/15 Bought GNK on the positive on Wednesday. It's showing a very nice chart with a gap up and another gap up through the 50 day moving average. It's forming a Scoop pattern. It should move much higher. Use a close below the 50 day moving average at around $21.75 level as your stop. 7/16 It continued to move up. It used the 50 day moving average as support and bounced right back up again. It should move much higher. 7/17 It's still moving up nicely off the Hammer/gap up pattern. It still has the possibility of testing the recent highs. 7/20 It continued to move up. It consolidated a little on Monday but isn't quite in the overbought area. Continue to hold. It has shown a very strong move with two gap ups through the 50 day moving average and the T-line. Now use a close below Monday's low of $22.90 as your stop. 7/21 It's still moving up nicely. It's moving up toward the overbought area. Watch for some profit-taking, but as of right now it's still in a nice uptrend. 7/22 It's had some good profits. It came down, tested the T-line, and bounced back up. It formed somewhat of a Hanging Man signal. The analysis is very simple. If it opens lower on Thursday, close out the position immediately. 7/23 It consolidated back to the T-line on Wednesday and came back up on Thursday. It's still in a nice uptrend. Use the T-line as your stop. 7/24 It's setting up a J-Hook pattern. Be ready to buy this on a positive open on Monday. 7/27 It's still in an uptrend coming out of the J-Hook pattern. Continue to hold. A lot of the transportation stocks are doing well right now. 7/28 If it opens positive and trades above Tuesday's high, it can be bought aggressively. 7/29 At least half the position should have been closed out when it opened lower after a Doji in the overbought condition. If it opens lower on Thursday, close out the position immediately. It needs to open higher and trade higher after the Hanging Man/Hammer type signal to show that it will stay above the T-line. 8/7 It should have been closed as it closed below the T-line and the 50 day moving average on Thursday.

7/14 Bought ARUN on the positive trading on Tuesday. It came up through the T-line and the 20 day moving average. It can still be bought on a positive open on Wednesday. 7/15 It continued higher on Wednesday. It's still in the process of completing the J-Hook pattern. 7/16 It continued to move up. Continue to hold. This can still be bought on a positive open. It formed a Doji on Thursday. 7/17 It consolidated a little bit but can still be bought on a positive open on Monday. 7/20 It's still working on a nice J-Hook type pattern. Continue to hold. Use the T-line as your stop. 7/21 It's consolidating but needs one more day. It needs to open higher and trade higher. Use a close below the T-line as your stop. 7/22 It's still doing very nicely. We're looking for a breakout into new territory. Continue to hold. 7/23 It might be getting toppy. It needs to have a positive trading day to continue to hold. Use a close below the T-line as your stop. 7/24 It's holding up well. Look for a breakout through the recent highs. Use the T-line as your stop. 7/27 It's getting a little bit toppy. Continue to hold as long as it doesn't close below the T-line. 7/28 It pulled back a little bit but not very decisively. It barely stayed above the T-line. It needs to open higher and trade higher to stay in it. If it opens lower and trades down, close out the position as fast as possible. 7/29 It's consolidating indecisively. It needs a positive open on Thursday. If it opens negative on Thursday after Wednesday's Hanging Man signal, close out the position. 8/7 It should have been closed out as it formed a Bearish Engulfing signal after a Doji back on Wednesday.

7/13 Bought NUAN as it came up through the previous day's close after consolidating quite a bit. It can still be bought on a positive open on Tuesday. 7/14 It held up well on Tuesday. It stayed up above the T-line. It's still in an uptrend. The first target should be the 50 day moving average. The second target should test the recent highs. 7/15 It had a nice strong run right up to the 50 day moving average. If it breaks through the 50 day moving average, it will probably come up to test the recent highs. 7/16 It came up through the 50 day moving average on Thursday. Continue to hold. We're now looking for the next target to be the recent highs. 7/17 It keeps moving up nicely. Continue to hold until you see a sell signal. The first logical resistance level will probably be at the recent highs at around $14.50. 7/20 It formed a little Shooting Star in the overbought area. Keep an eye on it. If it opens lower on Tuesday, you will probably want to take half the position off and look for the next buy signal. If it doesn't form a sell signal, you can always buy back in. 7/21 It keeps moving up. We're still anticipating a test of the recent high. 7/22 It's still holding up well. Hopefully, it's just moving sideways and waiting for the T-line to catch up. 7/23 It continued higher. Continue to hold. At this point use Thursday's low of $13.45 at your stop. We don't want to see it trade back below that level. 7/24 It consolidated but might just be moving sideways until the T-line catches up. At this point we don't want to see it close below Friday's low of $13.41. 7/27 It formed a Bearish Engulfing signal after a Doji/Hammer. It has to open higher to stay in it. If it opens lower, close out the position immediately. You can always buy it back if it comes back up again. 7/28 It needed to open higher and trade higher to stay in it, which it did. Now it needs to open higher again and start the uptrend again. It seems to be waiting for the T-line to catch up with it. 7/29 It's moving sideways. If it trades at all below Wednesday's low of $13.35, it would tell us the Bears are in control. We don't want to see it close below the T-line. 8/7 This should have been closed out but can be bought again on a positive open on Monday.

7/10 Bought DLX on the positive trading. It went up through the 50 day moving average at the $14.13 area. Continue to hold. Use the 50 day moving average as your stop. 7/13 It's still moving very nicely. Continue to hold, especially after the big gap up off the Doji. 7/14 It moved up nicely again on Tuesday. It's right at the breakout area. There is still juice left in the stochastics. Look for it to break out through this range. Continue to hold until you see a sell signal. 7/15 It continued right up through the recent highs. Continue to hold until you see a sell signal. 7/16 It had some profit-taking on Thursday. Be ready to take profits if it opens lower and trades lower, especially if it comes back down through Thursday's low at the $16.13 level. 7/17 It showed weakness. Get ready to take some profits if it trades back below Friday's low of $16.06. If it comes back down through there, it tells us the Bears are in control. It needs to open higher and trade higher to continue to hold. 7/20 It needed to open higher and trade higher to stay in it, which it did. We're looking for wave three to start to the upside. 7/21 It consolidated but moved back up. Continue to hold. There is no selling pressure yet. However, after the Hanging Man signal, use Tuesday's low as your stop. 7/22 It continues to move higher. Continue to hold. 7/23 It formed a severe Shooting Star signal. It needs to open higher and trade higher to stay in it. If it opens lower on Friday, close out the position immediately. 7/24 It showed a lot of possibility of reversing on Thursday with the long-legged Shooting Star/Doji. However, it held up well on Friday and stayed above the T-line. Continue to hold but we don't want to see it close below the T-line. If it does, close out the position. 7/27 It's getting very toppy. Keep holding onto this as long as it closes above the T-line. But it definitely needs to open higher on Tuesday and trade higher. If it opens lower on Tuesday, close out the position immediately. 7/28 It still couldn't close below the T-line but closed close to it. The decision is very simple. If it opens lower on Wednesday, close out the position. It needs to open positive and trade positive to stay in it. It's getting very "testy" at this level, especially with tails to the upside in the candles. It's either getting ready to start wave three to the upside or pull back. We will know based on how it opens on Wednesday. 7/29 It cannot close below the T- line. Continue to hold. If it opens positive on Thursday, you will probably want to buy it aggressively. 8/7 If you were stopped out at the beginning of the week, you can be ready to buy this on a positive open for any trading above $17.25. That would tell us it's breaking out into new territory.

7/14 Bought FAS on the positive open. It consolidated but came back up to the top end of the trading range. It can be bought aggressively on a positive open following the Doji/gap up. Positive trading on Wednesday would also take it out of the downward trend channel. 7/15 It produced some very good profits on Wednesday. One third of the position could have been taken off only because it had a nice move and we wanted to put some profits back in our pocket. There is nothing yet to tell us the uptrend is not still in progress. We can always buy back the part of the position that we sold if it continues to move higher. 7/16 It consolidated very nicely and came back up. It can still be bought on a positive open on Friday. 7/17 It's resting on the 50 day moving average. We definitely don't want to see it close back below Friday's low of $46.71. It needs to open and stay above the 50 day moving average to continue to hold. 7/20 It's still moving up nicely. Continue to hold. At this point use the 50 day moving average as your stop. 7/21 It came down and used the T-line and the 50 day moving average as support. Look for it to open higher on Wednesday. 7/22 It formed a nice Belt Hold type signal. If it opens higher on Thursday, start buying it aggressively. 7/23 It moved up nicely off the little Belt Hold type signal. Continue to hold. It will probably back off a little bit but as long as it stays above the T-line, continue to hold. 7/24 Even though it traded lower, it came back up toward the breakeven level for the day. Continue to hold. It's still coming off the little Belt Hold type signal. 7/27 It's coming out of a little J-Hook pattern off the previous Belt Hold signal. The bank stocks are doing well. It should continue higher. 7/28 It consolidated but the Bulls are still in this trade. 7/29 It's still holding its own at this level. Continue to hold. 8/7 It's doing very well for us. Continue to hold until you see a sell signal. 8/10 It's still in an uptrend. It's moving a little bit away from the T-line so at this point use any trading below Monday's low of $72.53 as your stop. If it comes back down through there, you will probably want to take some profits and see if it will form a J-Hook pattern. 8/11 It should have been closed out as it came down through our stop area at the lows of the last couple of days. Now watch for a J-Hook pattern set-up.

7/24 SYY was not shorted. The selling was not confirmed. It opened higher and traded higher most of the day. This should no longer be considered as a short.

7/9 Bought WFR on the positive open on Thursday. It had a Doji type day. If you haven't bought it and it opens positive on Friday, it can be bought aggressively. If it opens higher, it will probably move up above the T-line. 7/10 It continues to move up nicely. Continue to hold. It had a Doji type day but we would like to see it break out through the 200 day moving average. 7/13 It consolidated but closed back up above the T-line. Continue to hold. Use a close below the T-line as your stop. 7/14 It has been trading indecisively but is moving in the right direction. We still need to see this break out above the 200 day moving average. We don't want to see it close back below Tuesday's low of $16.44. That would tell us the 200 day moving average was acting as resistance and it couldn't get through the downtrending channel. 7/15 It gapped up nicely on Wednesday and is still in an upward trend. Continue to hold until you see a sell signal. It's setting up a Scoop type pattern. 7/16 It's still moving very well. Continue to hold. It's right at the 50 day moving average. If it breaks through there, it still has a lot of running room. 7/17 It's still moving up nicely. There have been good gains in this one. It has now broken out through the little "handle" area up through the 50 day moving average. It should have some more upside potential. 7/20 It formed a gap up Doji. The stochastics aren't quite into the overbought area. Use Monday's low of $19.06 as your stop. If it comes back down through that level, you might want to take some profits there. 7/21 It moved up nicely. Continue to hold. 7/22 It formed a Harami/Doji on Wednesday. If it opens lower on Thursday, especially if it comes back down through Wednesday's low of $19.66, you should be out of the position. At that point it would probably come back down to test the T-line. 7/23 It consolidated nicely and came right back up again. Expect it to move higher. If it opens lower on Friday, take profits immediately. 7/24 It was closed out immediately with the gap down, especially gapping down through the T-line after a Hanging Man signal. 7/24 It was closed out immediately with the gap down, especially gapping down through the T-line after a Hanging Man signal.

7/27 Shorted INFA on the early weakness. However, it should have been covered as it closed more than halfway up Friday's bearish candle. It can be re-shorted if it comes back down through the $17.50 level.

7/27 Shorted BRCM. However, it definitely should have been closed out with it closing higher, especially when it closed above the T-line. It can be bought on a positive open on Tuesday. It may be forming a J-Hook pattern.

7/24 Shorted SNDK as it opened lower. Continue to stay short as long as it doesn't close above the T-line. 7/27 It should have been closed out on Monday as it closed above the T-line.

7/28 EXM was not bought but can still be bought aggressively if it comes back up through the $9.50 level. If it comes back up through that level, you would definitely want to be buying it. That would tell us the uptrend was still in progress.

7/27 Bought WH on the positive open on Monday. If it opens positive again on Tuesday, be a buyer. 7/28 It should have been closed out with it closing back below the T-line. It's getting soggy and is trading sideways.

7/20 Bought SIGA on the positive trading. We are reiterating this as a buy on Tuesday if it opens positive. You will definitely want to buy it as a day trade or a swing trade. A positive open will tell us the Bulls have taken control and it should move much higher. 7/21 We reiterated a buy of this stock but it consolidated and traded down most of the day. However, it came right back up. Because of the previous strong buy signal, this could have been bought as a day trade as it traded lower because the probabilities were good that it would move back up before the end of the day. This can still be bought on a positive open on Wednesday. 7/22 It consolidated and came back up. Continue to hold. It's still coming out of the Cradle pattern. Use a close below the T-line as your stop. 7/23 It consolidated. It's still holding up. We're looking for positive trading coming out of this stock over the next day or so. 7/24 It's still moving up. Continue to hold. Use the T-line as your stop. 7/27 It got a little bit soggy on Monday but didn't do anything to change the upward trend after the Cradle pattern. 7/28 It should have been closed out on Tuesday with it closing back below the T-line.

7/20 Bought LPS. It moved up nicely. You could have also bought the September 30's at around $2.30 and sold the September 35's for $.65, making your net $1.65. If it moves up past the $35 level by September, your $1.65 has now turned into $5.00. 7/21 It didn't do anything to change the upward trajectory. If it gaps open on Wednesday, especially above Tuesday's open, you'll want to buy it aggressively. That will be a good breakout sign. 7/22 It's still moving up nicely. Continue to hold. 7/23 It's getting a little bit soggy. It should be closed out if it comes back down through Thursday's low at the $30.17 level. That might be telling us it's coming back to form a J-Hook type pattern. 7/24 It bounced off the T-line and came right back up. There is still a good uptrend in progress. 7/27 After the Fry Pan Bottom breakout, it's moving sideways. Continue to hold as long as it doesn't close below the T-line. 7/28 It should have been closed out on Tuesday with it closing below the T-line.

7/23 Bought SNS as it traded positive on Thursday. It can still be bought on a positive open. We don't want to see it close back below the T-line. 7/24 It stayed up above the T-line. It can still be held as long as it closes above the T-line. However, we need to see some positive trading in this stock pretty soon. 7/27 It should be bought again on a positive open on Tuesday. 7/28 It needs to break out on Wednesday or it's time to move our money someplace else where we're getting some action. 7/29 It should have been closed out on Wednesday with the close below the T-line. We don't want to see indecisive trading in the overbought area and then a Bearish Engulfing signal that closes below the T-line. That tells you the sellers have taken control.

7/22 Bought TSL. If you bought this position as it came up through the close of the previous day, it needs to open higher on Thursday to continue to hold. If it opens lower, close out the position and wait for the next buy signal. 7/23 It continued to move up nicely on Thursday after Wednesday's consolidation. It's still moving in an upward direction. 7/24 It gapped up and had a Doji type day. If it opens lower on Monday, close out the position and see if it will come back and test the T-line. 7/27 It should be closed immediately on a lower open on Tuesday or on any lower trading. If it opens positive and trades back below Monday's close of $29.87, close out the position. It formed a Doji on Friday and a Bearish Engulfing signal on Monday. 7/28 It used the T-line as support. It can still be bought if it opens positive on Wednesday. It would be setting up for a J-Hook pattern. 7/29 It should have been closed out on Wednesday with it opening lower and trading lower below the T-line.

7/15 Bought ME on the positive open. It gapped up and had a Doji day. It needs to open higher and trade higher. If it opens higher, day traders may want to jump in the position because it will probably come back up toward the top of the shadow of Wednesday's candle. 7/16 It opened lower but came right back up again. It can still be bought on a positive open on Friday. 7/17 It's still being affected by the previous gap up. It still hasn't closed below the low of the Doji day on Wednesday. Give it another day. It definitely needs to have a positive open and higher trading. Any more weakness would probably be telling us it will come back down to the 200 day moving average before it moves back up again. 7/20 It came back nicely. It can still be bought. It has gapped up and consolidated nicely and is now showing new buying. 7/21 It continues to move up nicely. Continue to hold. 7/22 It's staying above the T-line. Continue to hold. We don't want to see it close below the T-line. 7/23 Continue to hold. 7/24 It's still moving up nicely. It barely moved up through the 50 day moving average. Continue to watch this to make sure it can stay above the 50 day moving average. 7/27 It didn't have any problems coming up through the 50 day moving average on Monday. Continue to hold. 7/28 It consolidated. It can be bought on a positive open on Wednesday. Use the T-line as your stop. 7/29 It should have been closed out immediately on the negative open on Wednesday.

7/16 Bought TCK on the positive trading on Thursday. It broke out to a new high. It's showing a very strong chart with it bouncing off the 50 day moving average and moving up. Continue to hold. 7/17 It still moved up nicely off the bounce from the 50 day moving average. It's getting into the overbought area. Continue to hold but watch for a potential sell signal. If it gaps up, you might want to think about taking half your position off as profits. 7/20 After a gap up Doji in the overbought condition on good volume, be ready to take profits. We would have taken half the position off with the gap up on Monday and the formation of a Doji. If it opens lower, especially trading down below Monday's low of $21.51, we would take off the entire position or the remaining portion if you had already sold half on Monday. The only way to continue to hold is to see it open flat and trade predominantly higher on Tuesday. 7/21 It had some profit-taking on Tuesday. If you sold half the position on Monday, the other half should have been stopped out as it opened higher and came back down through Monday's close. You should be out of it right now. You can buy it back if it opens positive on Wednesday.

7/22 BYD was not shorted. It didn't do anything to warrant shorting the position, but it did come back up, resisted at the 50 day moving average, and sold back off. It can still be shorted if it comes down through the $8.50 area. If it comes down through that level, or especially the T-line, it would mean that it failed at the 50 day moving average and will probably come back down toward the 200 day moving average. Be ready to short it on any weakness.

7/22 ALK was not shorted. It can be shorted on any weakness on Thursday. It formed a Bearish Engulfing signal followed by a Doji, which means it's going to move in the direction of how it opens after the Doji. If it opens weaker, get ready to start shorting it.

7/17 Bought RGS on the positive trading on Friday. It pulled back but it's probably just consolidation after a nice big price move. This can be bought aggressively if it comes back up through the $13.45 area with the anticipation that it will come up to the 200 and moving average. If it comes up through there, it should fill the gap all the way back up to the 50 day moving average. 7/20 This can be bought on a positive open on Tuesday after a couple of days of consolidation. We don't want to see it close below Friday's low. That would tell us the Bears are back in control. 7/21 It's fizzling a little bit. It needs to have a positive trading day on Wednesday and close above the T-line. If it opens lower on Wednesday and starts trading down, close out the position. 7/22 It should have been closed out with it closing back below the T-line again. Continue to watch it. If it opens higher and trades higher after the Inverted Hammer type signal, you can buy it back.

7/17 Bought PCBC on the positive trading but it came back down. Look for it to form a Cup and Handle pattern. Use the T-line as your stop. 7/20 It had a nice percentage move. It opened higher and moved right back up into the upper shadow of Friday's candle. The stochastics are confirming that there is still a lot of juice left. We're looking for it to at least move to the 50 day moving average and possibly higher. 7/21 It did back off but closed just above the T-line. Give it one more day. It needs to open positive and trade positive. 7/22 It traded off a little bit on Wednesday but it formed a Doji. If you closed it out, just be prepared to buy it right back if it opens higher and starts trading higher. It's still coming out of a Fry Pan Bottom pattern. It may be forming a Cup and Handle type pattern.

7/23 WHR was not shorted on Thursday with the market showing strength and this stock showing strength most of the day. It negated the sell signal of Wednesday.

7/23 GENZ was not shorted on Thursday but it can still be shorted if it comes back down through the lows of Wednesday and Thursday. If it comes down through $51, be ready to short it.

7/8 Bought VLTR on the positive trading on Wednesday. It opened higher early in the day, consolidated, but traded positive on the day. It's still coming up out of the recent indecisive trading area, forming a slight little Scoop type pattern. Continue to hold. Use the T-line as your stop. 7/9 Continue to hold as long as it doesn't close below the T-line. 7/10 It's getting a little bit "iffy" at this level. Continue to hold as long as it doesn't close below the T-line. 7/13 It consolidated but closed positive. Continue to hold. Be ready to buy it aggressively if it breaks out to the positive side on Tuesday. 7/14 It's starting to get soggy. Still use a close below the T-line as your stop. 7/15 It's still in a nice steady uptrend. Continue to hold. Use a close below the T-line as your stop. 7/16 Continue to hold. It's still in a nice uptrend. 7/17 It's still moving slowly but surely to the upside. Continue to hold. 7/20 It has now broken out nicely. Continue to hold until you see a sell signal. Notice there was a gap up on Tuesday so you might start watching for little bit of profit-taking here pretty soon. 7/21 It consolidated but formed a Hanging Man type Doji. This means that if it opens lower on Wednesday, start looking to take some profits. 7/22 It's getting a little bit toppy. It formed a Doji/Hanging Man on Tuesday and showed selling on Wednesday. Be ready to take some profits if it opens and trades lower on Thursday. 7/23 This one should probably have been closed out. If you still own it and it opens below the T-line on Friday, close it out immediately.

7/10 CHK was not bought on Friday because it opened lower. It came back up to being close to even. We've reiterated this as a buy if it opens positive on Monday. There is bottoming action at this level and buying seems to be coming back into the stock. Look for a positive open.

7/10 CEDC was not bought with it opening lower and trading lower all day on Friday.

7/9 Bought HPY. It gapped open on Thursday but immediately started trading south. Since this one closed above the T-line, we can continue to hold it. We are now looking for it to open higher and trade higher. If it closes below the T-line on Friday, you will want to close out the position. 7/10 If you bought this on Thursday, it should have been closed out on Friday. Even though it had a Doji type day, it closed below the T-line. It can always be bought back on positive trading. Used $9.34 as your buy stop on Monday. If it comes up through there, you will definitely want to be buying.

7/7 Shorted SMRT. In the afternoon comments we mentioned we were ready to close it out because it was trading up above the T-line, but it backed off in the final 30 minutes of trading. It's still in an "iffy" state. It needs to open lower and stay lower to stay short. If it opens higher and starts trading higher on Wednesday, close out the position immediately. This stock should definitely not have been showing this much strength in Tuesday's market. 7/8 It opened higher but isn't showing any strength until it closes above the T-line. We still need to see this one open lower. If it opens positive on Thursday and comes up through the T-line, you will probably want to close it out immediately. Watch the stochastics. More strength at this point would tell us the stock is setting up for a J-Hook pattern. 7/9 It failed at the T-line on Wednesday and traded lower on Thursday. This can still be shorted on weakness on Friday. 7/10 This is a good illustration of why you would want to have a stop at the previous day's high. In this case it definitely should have been stopped out on the previous day's open.

7/13 EBS was not bought. It opened and started trading down. It may have popped up a little bit but not enough to warrant getting into this position. It needed to show more strength than that. If you did buy it, it needs to open higher to continue to hold. Otherwise, if it opens lower, you will want to close out the position immediately.

7/9 Shorted PDCO on the weakness. It closed below the 50 day moving average. We're still anticipating that this is in a downtrend even though it formed a Hammer type signal. At this point use any trading above the T-line as your stop. 7/10 It didn't show too much aggressive selling on Friday. If it starts trading positive on Monday, be ready to close out the position. If it opens higher and starts trading higher, you may want to close it out. There is always the possibility that it could open higher and immediately start moving down again. 7/13 It should have been closed out on Monday, especially as it went positive. It opened and traded down but it was time to close out the position when it moved back up.

7/8 Shorted WY as it came back down through the previous day's low. It can be shorted aggressively if it opens weaker on Thursday. 7/9 It traded higher on Thursday but didn't move above Wednesday's high. Still use that level as your stop. If it opens positive and starts trading positive on Friday, you will want to close out the position. It needs to open lower and trade lower to stay short. Positive trading from here would be setting up a Double Bottom pattern. 7/10 It's starting to show some bottoming action. If you didn't close it out on Friday, be ready to close it out if it trades at all above Friday's high of $28.25. Use $28.25 as your stop. 7/13 It should have been closed out immediately as it opened positive on Monday.

7/6 Shorted WCG on the weakness on Monday. It can be shorted on weakness on Tuesday. Use the 50 day moving average as your stop. If it comes back up through the halfway point of Thursday's candle, it shows that Monday's action was just a pullback to the support level. 7/7 The stocks from the entire health care group were showing strength on Tuesday. It came up but started selling off on the close. Stay short but it needs to open lower and trade lower on Wednesday. If it opens higher and starts trading higher, close out the position immediately. 7/8 It showed good strength on Tuesday but gave back all of it on Wednesday. This can still be shorted, especially if it opens lower on Thursday. 7/9 It traded up on Thursday but came back down. Continue to stay short. Use a close above the T-line as your stop. 7/10 It's still trading down. Stay short. It's not trading decisively to the downside and is getting toward the oversold area. At this point we would use the T-line as our stop. If it trades at anything above the T-line at around $17.40, you will want to stop out. 7/13 It should have been closed out as it opened positive with the market also opening positive, especially after a couple of Doji signals and the stochastics near the oversold area.

7/8 Shorted VRX on the weakness on Wednesday. It formed a Doji. It can be shorted aggressively on a lower open on Thursday. If it opens higher, we definitely don't want to see it come back up through the 20 day moving average or Wednesday's high. That would tell us it's probably going to come up and test the 50 day moving average again. You would want to be out of it at that point and wait for the next sell signal. 7/9 It had a nice gap down and hit our first target quickly. If you were quick enough, you should have taken off at least half the position at that level. Now it has formed a Hammer/Doji signal. If it opens higher on Friday, close out the position. It needs to open lower and trade lower to continue to stay short. The stochastics are still heading down. 7/10 It didn't show any strength after the gap-down Doji. Look for it to settle in this area. Use Friday's high of $23.07 as your stop. If it comes up through there, you will want to stop out of this position. 7/13 Get ready to close this out if it opens positive on Tuesday. It needs to open lower and trade lower to stay short. 7/14 It should have been covered on the positive trading on Tuesday if you still owned it. Now it can be considered as a buy. If it opens up above the T-line, you will want to start buying it.

7/16 MTL was not bought on Thursday but it consolidated nicely. It can be bought on a positive open on Friday at anything above Wednesday's high of $9.06.

7/2 SOA was not bought on Thursday with it opening lower. It needed to open higher and trade higher to get into it. We wouldn't buy it unless it comes up through Wednesday's high, which would show us the pattern was still in an uptrend.

7/2 HOC was not bought with it opening lower. It can be bought if it comes up through Wednesday's high.

7/2 CTB was not bought. It can still be bought if it comes up through the recent highs.

7/6 TSL was not bought. It opened much lower like a lot of the solar stocks on Monday. It can still be bought if it comes back up through Thursday's close in the $27 range.

7/7 Bought FORM on the positive open Tuesday morning but it should have been closed when it closed below the previous day's open. This is not what it should have been doing after a gap up from a J-Hook pattern. Keep an eye on it. It can still be bought, especially if it comes back up through the $20 area.

7/7 FDML was not shorted. It didn't show any great weakness on Tuesday. It opened higher and waffled around for awhile. It can still be shorted if it comes back down through Tuesday's low of $8.85.

7/1 Bought F. It opened higher but backed off near the close. It can still be bought on any positive trading over the next few days. It's bouncing up off the 50 day moving average. 7/2 It held up reasonably well. This can still be bought for a long term hold as long as it stays up above the 50 day moving average. 7/6 It held up most of the day but got weak on the close. This can still be bought as long as it stays above the 50 day moving average. 7/7 Short-term traders should have been out of it. Longer-term traders can hang onto it as long as it stays above the $5.25 area but it's not looking good right now. If trading this long-term, you can come out of it and buy it back in the next few weeks if it starts looking good again.

7/9 LNC was not bought. It opened higher and traded higher but closed at the lower end of the trading range. If it comes back down through the $15 level on Friday, it tells you the sellers are still in control and you can short it at that level.

7/6 Bought ERY on the positive open on Monday with the market opening weaker. However, it backed off toward the end of the day with the markets getting stronger. The energy stocks started to come back up a little bit on the close. Holding this stock will be a function of how the market opens on Tuesday. If it opens stronger and we see strength in crude oil and the energy stocks, close out the position. It needs to open higher and trade higher to stay in it. 7/7 Continue to hold the short funds. We recommended this a few days ago and it's still moving in the right direction. 7/8 It traded up well on Wednesday but gave some back. It formed a Doji just like the markets did. If the markets open higher on Thursday and the Bear funds start trading lower, you will probably want to take some profits and see if it uses the T-line as a test area. 7/9 It should have been covered on Thursday with the futures looking positive and with the gap down from a Doji.

7/6 Shorted GET on the weak open on Monday. If it opens weak on Tuesday, it can still be shorted. It may be starting wave three to the downside. 7/7 Remain short in this position until you see a confirmed signal. At this point use Tuesday's high of $11.24 as your stop. If it comes back up through that level, you will want to be out of it. This stock should be showing more weakness in these market conditions. 7/8 It continued its downward course. It opened higher on Wednesday but immediately started selling off. Continue to stay short. 7/9 This should have been closed as it came up through our stop.

7/1 Bought CQB on the positive open on Wednesday. It held up well. It nudged up against the 200 day moving average and there's still juice left in the stochastics. We want to see it move up through the 200 day moving average in the next day or so. 7/2 Apparently, it resisted again at the 200 day moving average. But continue to hold it as long as it doesn't close below the T-line. 7/6 It stayed above the T-line on Monday. It consolidated back to the 34 day moving average but closed up nicely. It can still be bought if it opens positive on Tuesday. 7/7 It didn't do anything to speak of. It did close above the T-line. Continue to hold. If it trades lower on Wednesday, especially if it trades below Tuesday's low of $10, you will probably want to close out the position. That tells us the Bulls are not there and the Bears are still in the position. 7/8 It keeps holding up above the T-line. It's getting ready for a J-Hook type set-up. 7/9 It should have been closed out on the weakness. It's showing us the Bears are in control.

7/1 MAPP was not bought. However, it can be bought if it comes back up through the $12.60 area on Thursday. It's still setting up for a Fry Pan Bottom breakout.