Investment Capitalist

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Game Plan - VOLUME EXHAUSTION BARS IN FINANCIAL STOCKS.

Campaign - Position trade 2nd tier financial names. Continue to focus on gold stocks and buy on dips, sell into rallies.

PRIORITY- Volume climax in financial names. Short-term trend exhaustion. Dow recovery of 7450 level short term reversal in progress.

Week of Feb. 23

Dow showing multiple pos. divergences with Friday’s doji low. Watch 7450
for recovery. Q’s at 29 major support. SPY near TD9 buy.

POT inv. H&S n/l b/o. Watch MOS too. Put alert for SQM 24/26
PCLN running away after breakaway gap over 200dEMA.

ERX/OIH-  ready for rally here. FSLR high vol. reversal could rally to 150 entry
around 129-130 or >135. GSG TD buy signal confirmed and qualified
good for 3 points. USO TD reversal qualified. UNG close to TD.

Watch airline stocks. DAL showing bullish sticks with $4 July ’07 lows very
close and trying to close above $5. LCC TD16 buy watch for recovery of
3.16. UAUA huge vol. reversal.

SKF target $244.  Watch FAZ around 88-89 for short entry. Watch FAS for accum. around $4-5. JPM high vol. doji at critical support.

The new momo theme is “discounted premium fast food”. Model and monitor: BWLD, AIPC, CMG

MRVL neckline failure about to recover.

SHORT:  BTU, AAPL (watch q’s at 28.96),

Trades:
#1-
Watch BTU on the open. If open is equal to prev. close (28.25), stock
is opening outside primary major downtrend line. This could trigger a
short covering rally to back to $30-$32 area, where it sets up a
powerful short trade for a recovery of the primary trendline, similar
to last week. Below $28, the d/t resumes without a false breakout.
Above $33 then d/t line has been broken as a major trend reversal.

#2
CME- Watch open. If opens <190, there are 3-4 points short to $185.
Long reverse for quick scalp. Downtrend likely to resume if <183.
Fib targets: 179, 171.50. <170 targets new trend lows. LOW risk
entry SS L $199-200. Also monitor this area: $196/.50
If $189.30/.00 area holds, BL with target of $195-197 – $200, for perfect reversal SS at low risk entry level.

#3
STI- TD9w buy signal. Very accurate. Selling climax. Huge bounce coming. Positive divergences.

#4 CRM- Qualified TD9 with confirming vol. Recovered prior low to present possible 2xB 25.86. VMW similar setup

#5 POT/MOS & LIFE- uptrend and at multiple MA cnvrgnc.