Tuesday evening

The bulls got to work in the last hour and closed the S&P500 into the green... although the Dow lagged a bit. S&P futures closed under the 20day WMA again (1442ish), but the bulls held the 1431-1432 area on the intraday dip.

If the bulls get to work tonight in the futures, I'll be looking for a move back into the 1458-1465 high volume zone on SPX tomorrow. One thing that has me cautious on longs is the OEX P/C ratio... it stayed very high today and barely came in on the afternoon bounce. That's potentially bearish on a gap up tomorrow morning.

An Old Laugher .... workin'

AOL Daily Chart (11:45)

Nobody believes in this ancient internet company.  Not an innovator and I still picture a dial up 2400 baud modem when I think of it.  It's printing the money maker pattern as it keeps pushing the upper Bollinger band.  I'm still long calls and added this morning.

Time to drag the channel.

Gator's Chart of the Day: JOY

After a steady move down from late January until mid-July it looks like Joy Global has bottomed and is now trading in a channel.  The P/Es (both trailing and forward) are about 8 so it's not expensive and that tall green volume bar was the day they reported earnings.  This looks like a good place to start a position.

The Trade
If the stock opens anywhere between the 20 day (57.41) and 50 day (55.29) simple moving averages I think you can take a 1/3 position and put you stop a little below the channel.  (54.80ish looks good.)  Since this is a channel trade you'll want to add quickly if the stock trades higher and I would want to fill out the position if the stock looks like it will close above the 20 day.  That may take a day or two but if the stock is going to stay in the channel I would expect it to happen this week.  While the stock is in the channel you'll need to give the stock some room for daily oscillation so don't make subsequent stops too tight.

With a target price of about 65-66 you should have about 1.50 downside vs. 8.00+ on the upside so that's a nice risk - reward setup.