14 Apr the Daily Stock Report

The market indices moved down 1.7% to 2% today in an orderly fashion with no major concerns to be worried about yet. So far, all of the stocks on the lists below have not broken the uptrend channel and big risk yet. If we continue to have another day or two down, no doubt most stop losses will be triggered. Look at the daily charts of each of your long holdings to see if or how much a drop would break that channel these stocks have been on for 2-3 months.

The bank stocks turned over today as you might expect after a big run up after Wells Fargo’s positive earnings surprise last week. This pullback is still within normal behavior and the selling in this sector isn’t too concerning yet but keep personal stop losses to your own tolerance (usually anywhere from 5-10% is typical).

It is very likely that this pullback will be considered a buying opportunity with most of these stocks although INTC, Intel released a positive earnings report but didn’t give clear guidance and their stock is down about 6% after the regular market closed.

If you are not long yet or not a complete long position, start watching your own favorite stock to buy but seriously consider a stock that has been very bullish in recent 2-4 months with a steady uptrend like the stocks listed below. It is likely that these stocks will stop going down in the next 1-2 days and start to move upward to higher highs.

Oil index closed down 1.4% to close at $49.18. The oil index continues to have slightly lower lows and lower highs.

Intermediate Trade Positions: The following stocks all look like good intermediate trade stock ideas and any one of them would be worth a small long position.

SWKS, Skyworks (semiconductor)4-8-09 report
RADS, Radiant Systems (SWING) 4-8-09 report
AMZN, Amazon.com4-8-09 report
IBM, International Business Machines4-8-09 report
UTX, United Technologies
MA, Mastercard
AAPL, Apple Computer
BIDU, Baidu
BMC, BMC Software
STEC, Stec
SY, Sybase
RIMM, Research in Motion
DIOD, Diodes (semiconductor)
FCX, Freeport McMoran
BR, Broadridge
GS, Goldman Sachs
CMG, Chipotle Mexican Grill (McDonalds subsidiary)
TLM, Talisman Energy (Oil & Gas)
PBR, Petrobras
FXI, Xinhua China 25 ETF
SMH, Semiconductor ETF

Swing Trades: New Ideas: RT, Ruby Tuesday, restaurant chain. Eventually this is going to bge a bullshort but not yet. Let it keep moving up for a while and consider a short after it turns over and starts heading down. For aggressive traders, very small position.

Day Traders/Intraday stock ideas: Another outstanding day today with intraday trading and should continue this week. The drop and pop should continue to be very most successful. When you see the market correcting after an extended uptrend like we are having now, the first down days provide the best drop and pop which should be traded on the long side at first. Hypothetically speaking, if the market turns over and continues down, you should wait longer and longer for stocks to drop in the morning then look for the pop to go long again. Stay on the long side on the pop but don’t buy late in day. The banking stocks were strong today on the drop and pop in the first 90 minutes: BAC, WFC, JPM, C, and USB. Also look for good intraday trades in FSLR, ICE, BLK, CME, POT, MON, MOS, AMZN, AAPL, BIDU, USB, WFC, JPM and any high volume, high volatility stocks. You can try using various software programs within your brokerage firm’s trading platform that could provide you the highest beta stocks in order and review those on daily and intraday charts. The stocks above are just a few of them and this list often changes.

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REPEAT: Many of you have emailed me with questions about not having the $25,000 to do intraday trading. You can have 3 intraday trades in a 5 business day rolling period without having $25,000 in your account. Above $25,000 you can do unlimited intraday trades as long as your account equity is above $25k. You can have swing trades like we have been having the last 2 weeks and make a smaller amount of money, let’s say $10,000, to build up with swing trades.

Thoughts: Keep steady, calm, decisive, aggressive. Have no fear and no greed. Keep looking at what to be doing next in a calm manner. Don’t focus on the past or beat yourself up what you did or didn’t do or what you should have done. Just keep playing the next shot, which in this business your next shot could be just sitting on the sideline.

Thoughts: Best odds only, be decisive, aggressive, mentally flexible, stay in position size, don’t overtrade and wait a little longer to buy and wait a little longer to sell. You will find that will make you more money on your trades. Trade what you see, not what you hope for. Intermediate and swing trades are really important to have trailing stop losses set.
Don’t trade unless the setup is there for you, then use the charts to tell you when the odds are heavily in your favor. Don’t force anything to work for you, let the setups develop and then take advantage of that. Be patient. Stay in position sizes without letting any intraday trade represent no more than 10-15% of your total account value. As you build your account, your position size percentage should get smaller and smaller to lower your risk.

Have a great day and I’ll talk to you this tomorrow.