Thursday, January 19, 2012

Evening Thread

The SPX finished above 1310 making the bulls happy. The QQQ's were stronger for the nth day in a row. Banks and Tech have been happy.

After hours we had numerous important earnings reports, including from GOOG (disappoints); ISRG beat but was trading down; IBM, INTC, MSFT, AXP, COF also reported. AAPL traded off (425-426) after hours as well.

Afternoon Thread

RICK 15 minute chart as of 11:40

You were warned.

Morning Thread

Gator's Chart of the Day
(Weekly on top Daily on bottom. Click chart for better view.)
Cheniere Energy Inc is a popular stock on the blog so I'm offering my take on it today.

Looking at the weekly chart (top) the November spike leaps out; a big move on the highest volume in years.  It overshot a bit and spent the rest of the year searching for support and finally found it at $8.  This looks like long term support.

Moving to the daily chart (bottom) we see the search for support and it found it just below 8 and just below the 200 day sma.  After this high volume gap down the 200 day sma proved to be resistance for about 2 weeks.  Finally clearing that resistance on above average volume (12/28) the stock based with the 200 day providing support.

Last week LNG started moving up on increasing volume and had it's best day yesterday closing near the high of the day.  This makes it tough to buy right here right now but clearly it has momentum so here is one way you could trade it.  (Just my opinion and I have no position.)

As long as it stays above 10 I think you can take an initial position with a stop around 9.45.  This would be your "core position."  If it continues to run you could add when you have some profit and put subsequent stops just below the prior day's intraday low.

There should be stiff resistance around 12 (even number and you can see it has failed to close that high.)