The Dow Jones Industrial Average rose 129 points on lower energy prices in early trading, but lost all of its gain as the trading day progressed and closed slightly lower. The Dow Industrials would have suffered a greater loss if General Motors had not been upgraded to a buy by Goldman Sachs. Concerns about failing sub-prime mortgages held by two hedge funds sponsored by Bear Stearns and news of regulator investigations triggered weakness in financial service and home building stocks.
Technical action by S&P 500 stocks was significantly bearish despite early strength in the Index Four S&P 500 stocks broke resistance and sixteen stocks broke support. Financial service and energy stocks were notable on the list of stocks breaking support.
S&P 500 stocks breaking resistance
Stock Symbol Previous New News
Trend Trend
Apollo APOL Up Up
Computer Sciences CSC Neutral Up
General Motors GM Neutral Up Upgrade by Goldman Sachs
Ryder R Neutral Up
S&P 500 stocks breaking support
Stock Symbol Previous New News
Trend Trend
Ambac Financial ABK Up Neutral
Avon Products AVP Up Down
Bear Stearns BSC Up Down Sub-prime mortgage fears
Broadcom BRCM Down Down
BJ Services BJS Up Neutral
Baxter BAX Up Neutral
First Data FDC Up Down
Hospira HSP Neutral Down
KB Homes KBH Neutral Down
Keycorp KEY Down Down
Murphy Oil MUR Up Down
Nordstrom JWN Up Down
Staples SPLS Down Down
Stryker SYK Up Down
Suntrust Banks STI Up Neutral
Western Union WU Down Down
Technical action by TSX stocks also was bearish. Two TSX stocks broke resistance and five stocks broke support. Energy stocks were prominent on the list of stocks breaking support.
TSX stocks breaking resistance
Stock Symbol Previous New
Trend Trend
Shawcor SCL.A Up Up
Shaw Commun. SJR.B Up Up
TSX stocks breaking support
Stock Symbol Previous New
Trend Trend
Duvernay DDV Up Neutral
Great Cdn. Gaming GC Up Neutral
Great West Life GWO Up Down
Husky HSE Up Neutral
Shore Gold SGF Up Down
Inter-day Comments for Monday June 25th
9:10 AM EDT: FP Trading Desk reads, “Research in Motion price target raised to U.S. $210 at UBS”. Following is a link to the report: http://communities.canada.com/nationalpost/blogs/tradingdesk/archive/2007/06/25/research-in-motion-price-target-raised-to-us-210-at-ubs.aspx
Research in Motion has a positive technical profile. Intermediate trend is up. The stock trades above its 50 and 200 day moving average. Strength relative to the S&P 500 Index and TSX Composite Index is positive. On balance volume data shows that the stock is being accumulated. Short term momentum data (RSI, MACD) is overbought and showing early signs of rolling over. Preferred strategy is to buy on weakness to a recent breakout level at $150 U.S. or to its 50 day moving average at $152.60 U.S. Short term resistance exists at its all time high at $177.40 U.S. Following is a link to its U.S. chart:
http://stockcharts.com/h-sc/ui?s=RIMM&p=D&yr=1&mn=0&dy=0&id=p69136446093
Chart courtesy of StockCharts.com www.stockcharts.com
Interesting Charts
Technical weakness in the TSX Composite Index continues. Yesterday, the Index closed below its 50 day moving average. Short term momentum indicators continue to deteriorate.
Chart courtesy of StockCharts.com www.stockcharts.com
Energy stocks on both sides of the border came under technical pressure (e.g. Duvernay)
Chart courtesy of StockCharts.com www.stockcharts.com
Weakness in Bear Stearns spilled into other broker dealer stocks.
Chart courtesy of StockCharts.com www.stockcharts.com
Adrienne Toghraie’s “Trader’s Coach” Column
Waiting for Opportunity
By Adrienne Toghraie, Trader’s Coach
www.TradingOnTarget.com
Traders waste too much time when they are waiting for an opportunity. So what should you be doing? What if you went to the next step assuming that the opportunity had already arrived?
Waiting For The Opportunity
Rob decided to be a trader from the time he was a child. He would often have dreams of seeing his uncle in the pit of the Chicago exchange waving his hands around and shouting for orders. But Rob’s father was not so lucky in business or in life. He went bankrupt and lost his life to a heart attack when Rob was only 12 years old. Rob had to leave school because as the oldest brother of four children, he had to assume some of the responsibilities of the household. But Rob did not give up the dream as he worked at his blue-collar job to help his mom. In the few hours of spare time he had he would read his uncle’s library of trading books. One day at a family dinner Rob’s uncle was amazed at the level of knowledge Rob had accumulated over the years about trading. At the age of 21 his uncle hired him as a runner. It was uphill from there. Eventually, Rob became one of the best traders in the S & P pits.
If Rob had waited for someone to give him an opportunity without taking the next step of being prepared, it would be unlikely that the opportunity would have come, and if it did he most likely would have failed.
Waiting For Enough Money
Lee also saw trading as a dream and often said that someday he would be a trader when he had enough money. The problem with Lee unlike Rob was that in the process of saving the money he never learned how to trade. When he finally took the big plunge and gave up his job to be a trader, he lost most of what he had saved because he did not have all of the resources he needed. He learned that money alone was not the answer.
Waiting For The Right Time
Daniel took another approach to trading. While he was working, his dream was to retire into a new career in trading. He first started as an investor moving his account around to get the best interest rates in mutual funds. While he did this over the years, he would go to conferences, read books and take courses. In the last two years before retirement Daniel worked his job half time while being a swing trader. When Daniel retired, he earned more money as a trader than he would have in five years working at his other profession.
Waiting For The Right Timing
Some traders build stress in themselves while waiting for an opportunity in trading. Many times they force a trade. Compare this approach to traders who enjoy reading charts or trading books while waiting for their computer to notify them a trade is about to happen.
Use “waiting time” to your advantage by using that time as an opportunity to do tasks towards obtaining and enhancing your goals.
Adrienne Toghraie, Trader’s Coach
Adrienne@TradingOnTarget.com
www.TradingOnTarget.com
919-851-8288
You Are Invited – June 27th – 5:00 pm EST
Adrienne Toghraie, Trader’s Coach
Presents - Pyramid to Trading Mastery
At the Traders World Online Expo
Log on to: www.traderworld.com/conference
Prior to June 27th to receive your free login instructions
Then login to hear Adrienne Toghraie …….
Do you experience losses
as a result of not being able to consistently follow your trading rules?
Adrienne Toghraie will present the “Pyramid to Trading Mastery Success Model”
based on her years of observing the process used by top traders.
While there are traders who have failed their way to success, most traders who come into the markets and systematically do the wrong thing will not only fail but will lose a lot of money in the process.
In this workshop you will learn that there is a better way.
Conquering the market is difficult enough, but often conquering yourself is even more difficult.
The “Pyramid to Trading Mastery Success Model” is a map
to becoming a highly successful trader.
All you have to do is follow it.
Tech Talk’s Weekly Financial Post Column
The column was postponed and probably will appear today. The article summarizes “Seasonality Basics” and includes a list of equity indices with their periods of seasonal strength.
ETF Update
Horizon BetaPro launches its leveraged gold ETF today. Both the bull and bear ETF have two times leverage based on daily trades. MER for both is 1.15%. Symbols are HGU and HGD on the Toronto Exchange.
Van Eck Global intends to launch an Exchange Traded Fund this fall on nuclear energy. Securities in the portfolio will range from uranium stocks to uranium based utilities.
A closed end fund issued by First Trust on the Value Line 100 Index has been converted to an Exchange Traded Fund. Symbol for the new ETF is FVL. Units trade on the AMEX.
Disclosure: Mr. Vialoux does not own securities mentioned in this report.
June 26,2007
Did you like this article?
Submitted By 
's
