We got three total longs flashed by our systems on Friday. That is a pittance compared to about the 50 long signals that we saw at the start of this latest market rally. Is a new bear showing its claws? Probably… We will see everything with clarity when we start seeing those inverse ETFs peeking and saying: hi, we are ready to take the market down suckers!
We saw a stock that piqued our interest. A former high flier and past member of the IBD 100 stock list: Hansen (HANS). Our Darvas system brought this stock to our attention with a breakout with accelerating volume on Friday. Now, this is not a time to get cute with the market, specially when buying a breakout. Have the discipline to get out-of-the-way if things turn for the worst. Enforce your stops with no exceptions. Honestly, we are on the fence on this one. We will buy it on our paper account to see how it plays out. However, it would be best to let it consolidate before buying it since now it is sitting at the top of the channel and right at resistance (horizontal line). It will probably try to close (fill) the open gap of Friday (area of the ellipse). That would be a better buy. Let’s say that a limit price around 42 ish sounds like a good entry point. Sounds sensible to us. Agreed?
HANS Stock Market Chart for 8-9-2010
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I am a dad, professional engineer, MBA student, and a financial fanatic. I can help you make money in the stock market. I use Fibonacci techniques for retracements and targets, technical analysis, some little fundamental analysis, and automated systems trading. I also trade options. In addition, I use CANSLIM to get neat growth stock ideas. No fluff and no BS.
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