Tuesday, February 19, 2013

Tuesday Evening

 
February is traditionally the month for roses and chocolates, but this morning's report tells us that the homebuilders are feeling neglected by a old lover.
The indices all closed higher despite the news.
 
 
 
 
 

Tuesday afternoon

(Thanks, Beagle)
Lots of talk today about China hacking just about anywhere they want but they assure us it's not them.  Whether you believe them or not somebody is poking at our cyberflesh and finding tender spots that will likely be exploited sooner of later.   Some tickers that should get a spotlight include: PANW CACI CSCO FTNT FIRE and there are more in the network security hardware/software business that should see good quarters and bright futures.

GOOG moved to new all-time highs this morning with an 8xx handle.  I think it moves toward 820 unless the negative talk about their customer privacy issues blows up.

Sequester talk may scare traders soon but so far it looks like 1550 is going to be tested.  JMO

Tuesday morning - Standing out of LINE

LINE Daily Chart
Since there was a bit of discussion about this one on the Monday thread (and I have nothing else in mind anyway) I'm looking at Linn Energy and tossing out my thoughts on the chart.  The stock is still in a down trend as both 50 and 200 day simple moving averages are pointing down.  Volume has been increasing and on Friday it reached about 3 times average so it may have been a capitulation day and the time to buy.  You can see the stochastic printed such a signal as the fast crossed the slow and moved above 20.

Below is a 5 minute chart covering the last 2 days of trading.
LINE 5 Minute Chart
Price is still moving down and while the tallest volume bar is the last one and it is green I'm not convinced that now is the time to jump in with both feet.  It may turn out that 35.52 was in fact the bottom.  It happened at 2:30 which has often been around the time the market begins its move up toward a strong close but I want to see a bit more indication that the sellers are done.