MIA but I am back

Yes, I have not been posting, but I don't think anybody missed me. My computer has been in the shop and that has been a real downer. I have an HP laptop and I am in love with this thing but an undisclosed member of my family had an accident.... and anyway, we had to send it back to HP for some warranty work. I might add that I was most impressed with the warranty department at HP.

So the market has been in the same unpredictable stage as when I last posted. The NASDAQ has however broke out to the upside, keeping a trend of higher highs in tact. The DOW has started a sideways move. Everybody wants to know what the market is going do. It's probably going to go up until it goes down! That was a safe statement.

Having a background in the Mortgage industry, I find the mortgage and real estate stocks interesting. Home builder stocks are making a move lower and there could be a lot of good bear call spreads and shorts in that sector.

One stock that I like long is Fannie Mae. FNM is the largest "A" paper investor, their loans require mortgage insurance and you can see by this chart, they have broken out of a gigantic wedge. Price Target? 90 to 100. No, not next month, buy the stock and hold it or look at some Jan 08 options. There is a reason the stock price is going up while other mortgage lenders are shutting their doors.


FUL - They broke out of this channel on earnings and I entered into a long position on Friday. Low risk as support is right there. I have a short term target of 32-33, it is just a couple of dollars but that would be 10% move. Not too bad.

BG - You have what looks like a "W" pattern followed by a few months of a descending channel. It broke out of that downtrend with some nice volume and I am looking for higher highs going into earnings. If it does pull back, I would gobble up a boat load at the 82.50 mark.

ADSK - I would like to think of an inverted Head & Shoulders pattern as being at the bottom of a down trend and signalling a reversal so... maybe this not one. It has been trading in more of a sideways range for the last two years giving swing traders lots of opportunity and most likely disappointing investors. Looked like a great entry on Friday and I am in!

LLL - looks like a nice up trend and the industry has had some momentum. 5 more points seems easy enough.

LPNT - Another big wedge. I got in last month right at the re test and was stopped out when it broke beneath 39 for a losing trade. I am back in and like the potential run into earnings.
GROW - you could view this as bearish or bullish. I like the volume spikes on the up days and have a long position with a tight stop. I see this just bouncing off support AND I see this right at resistance.

CTSH - this has been in trading range for the last two months after a nice sell off. I took a long position Thursday at the close and was rewarded very nicely on Friday. I can not say that I stuck with the whole move as I exited a little too early, but I will be watching this closely.
ASFI - My only notable bearish play is shorting this stock at $40. There is a little room for it to move up but looks like a loser to me.
CLF is still moving up not really showing any weakness. I like the volume.
SHLD - always a favorite chart of mine. I just love this stock and it has treated me well. My most recent trade was a loser as I did not expect it to break 175. It had a big day on average volume and you can see it is right at Resistance. Have to watch and see.

I am about 5 to 1 bullish trades over bearish and looking for things to keep climbing. Earnings are here and that should give some idea of direction as always.