Trade Setups for 8th December 2010
Williams Sonoma Inc (WMS)-long
Technical Analysis:
I will use 15 min consolidation on for day trade run to $50 whole number resistance area. It will be more momentum trade and I hope we won’t see setup right after the open because then risk will increase.
Fundamental Analysis:
Previous day's closing price for WMS was significantly above its 50-day moving average (positive). One or more analysts have modestly decreased quarterly earnings estimates for WMS (negative).
Wms Industries Incorporated (WSM)- Short
Technical Analysis:
I’m interested for daily bear flag and pull back in to previous low for start. Depends on pace and volume I will update target expectations in the live trading room.
Fundamental Analysis:
Shares are under heavy accumulation by financial institutions. Positive for small company like WSM. The price-to-earnings multiple is close to the average for all stocks (neutral). The ratio of WSM's price-to-earnings multiple to its five-year growth rate is negative or below the average of all stocks
Abbott Laboratories (ABT)-short
Technical Analysis:
After bounce from low I will expect to see pull back to previous low and more. I will use intraday consolidation for trading plan what give us good risk/reward opportunity.
Fundamental Analysis:
The price-to-sales multiple is slightly higher than the average for all stocks (positive). One or more analysts have modestly decreased quarterly earnings estimates for ABT (negative). Shares are neither being accumulated heavily nor sold heavily by financial institutions what is neutral for a large company like ABT.
Best Buy Co. Inc (BBY)-short
Technical Analysis:
I’m interested for selling continuation after second daily selling wave and run to $40 – daily 200sma support area. If we will see some 15/30 min consolidation before setup that will decrease trading risk and in that case I will look for bigger risk trade on it. I will post updates in the live trading room.
Fundamental Analysis:
Earnings growth in the past year has accelerated rapidly compared to earnings growth in the past three years (positive). The ratio of BBY's price-to-earnings multiple to its five-year growth rate is above the average of all stocks (negative). Previous day's closing price for BBY was close to its 50-day moving average (neutral).
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Watch ideas:
Long ideas:
ABV, NUS, DCTH
Short ideas:
RNOW, YEM, CVH, CLI, BIG, TKLC
For Ivica Juracich trading style explanation: click here
TRADING THE OPEN
During normal market conditions our regular setups generally do very well regardless what time they are taken. Trading right at the open always adds risk. During this low volume choppy market of the summer this risk is more pronounced. It is recommended that new trades not be taken for the first 5 minutes the market is open. I will treat each new trade that sets up during this time as a gap trade and wait till the stock comes back and takes out its 10 minute high or low.
Trading is risky. It is our job as traders to reduce this risk and increase our chances of success.
IMPORTANT: Take only the opportunities that you really like and understand. Always enter a trade with a trading plan. If you have any questions, please feel free to ask me. There is a much greater chance of success in your trading if you understand the trade. That is very important. Taking just a few trades is enough to be a successful trader. Overtrading is probably the number one reason new traders fail. I personally mostly take swing trades. Please remember to keep that in mind!!!!!!!!!!!!!!!
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If you have any questions, please feel free to contact me.
Good luck trading today!
Ivica Juracich
XpertStockTrader.com
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