Trading Notes : Trading Notes

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Trading Notes
Trading Notes
David Goldring
Thursday, November 18, 2004

Lot of intraday reversals yesterday. We didn’t pick up on our old friend EXM and apologize. But look at the chart and you will see the 50-day simple is turning down and it ran within 35 cents, before pulling back 5 points. There is gold in there them moving average lines, and it is important that we convey exactly what it is we are looking at. If you check out the chart for each recommendation you will clearly see the methodology, and gain a valuable insight into what we are looking for. We use simple moving average lines. And simply put you buy when there trending up, and sell when they are trending down.
Look up Housing (HGX) Cyclicals (CYC) Healthcare (HMO) and Retailers (RLX), and its clear someone is chasing performance. Look to buy these groups on the pullback.

Went short KFX, took small loss in half, always try to do that if doesn’t go your way straight away. Great call on MALL, fell almost 15% in 3 days! Could actually trade long if we see 18 soon. Shame IDBE couldn’t have had one extra bit before this fall. No cigar in LNG, looked for a sign of selling, never came. Went short FLEX, looking for a point, also STM, but will cover ½ on close above 20.80. Went short KR. XBD moved into the three tops, but no run in GS. Good call in BRCM. Looking to buy calls in ABT, especially towards 42.60. Long TRZ, don’t want to see it close below 16. Good call on SWIR, would be a huge break out above 20, looking at JCOM, and want to buy at 31.80 today. Forget buying CCBL, might scalp short at 9.90 today. Watch DNDN, 20-day average at 10.70. Hey BID finally found a bid. Looking for more. PETD , upside target 38, had a good day. JUPM, good start, but will need market help, not sure it will be there short term. Short DCLK, 200-day still the top, likewise with FDRY. Went long SNPS, don’t particularly care for company, but impressive technical break out. Long ELAB and QLTI, nothing happening there. CTMI closed below 200-day still short, FRED coming back, looking for a point, short ACTL, cover above 18.60.

LONGS

Oil Service Sector (OSX - 117.89) if it can close above 118.60 today, will again recapture its 50-day average, and we think set stage for a rally, while most other stocks correct. Will list names towards close if it looks like closing above that level.

Coinstar (CSTR - 25.34) will go long off 50-day average at 24.10

Urban Outfitter (URBN - 44.02) the 20-day has marked the low since mid August and been tested twice. Would test today at 42.80. Only for the very aggressive as believe near term top is in.

Shanda (36.62) if I have to hear how much Cramer loves this company one …. Old high 34.56, 20-day average at 33.40 would be great short term bounce, at 40 on Monday. Want to see more of these really good names come back to us, starting to see the signs.

Home Depot (HD - 42.28) buy calls off the 20-day average at 41.60, traded 44.30 on Tuesday

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