Free Swing Trading and Day Trading Picks & Education

The Bank of Canada today announced that it was raising its overnight lending rate by 25 basis points to 50 basis points. The doubling of the price of money is the first hike in North American by a central bank since the Great Recession ended.

The bank explained:

The economy grew by a robust 6.1 per cent in the first quarter, led by housing and consumer spending. Employment growth has resumed. Going forward, household spending is expected to decelerate to a pace more consistent with income growth. The anticipated pickup in business investment will be important for a more balanced recovery.

Will the Federal Reserve soon follow? Don't count on it. Chicago Fed President Charles Evans downplayed the idea in a speech today. According to Bloomberg:

Evans told reporters in Seoul today that he “wouldn’t be surprised” if the Fed’s policy of keeping rates low “gets extended just a little bit.” Philadelphia Fed President Charles Plosser, who is attending the same event, said separately that “how the crisis in Europe ends up affecting the economy will dictate how we will respond.”

The Fed funds futures market seems to agree. Contracts are priced in anticipation of Fed funds remaining unchanaged at a zero-0.25% target rate through the end of the year.

Another reason for expecting rate hikes in the U.S. to come later rather than sooner comes by way of the rising greenback. AP reports:

The dollar surged to a fresh four-year high against the euro Tuesday as worries that European banks could still face large loan losses next year added to concerns about the continent's economic outlook.

Notice that American officials are no longer making statements about how the government supports a stronger dollar. That's because the buck is rising these days for all the wrong reasons: risk aversion. The dollar is still the world's reserve currency, for good or ill, and the world is piling in once more in search of the proverbial safe haven. A higher dollar at the moment is a signal that the world is worried about deflation, debt and slow growth. Those risks aren't new. The only difference is that investors are now demanding a higher risk premium (i.e., lower asset prices) as additional compensation for the potential fallout.

Some Potential Swing Trading Opportunities for today...

These stocks will be monitored by you every day!!! Follow the master plan and you will be on your way to learn to trade stocks like a PRO... enjoy...

The results are generated by my stock screener. Only the first 5 results are displayed here for every scan.

For full results, subscribe now to StockScanPRO for 30 days FREE, then only pay $9.99 a month!.

SECRETS TO GREAT RESULTS:
CONFIDENCE - PATIENCE- FOCUS - DISCIPLINE

Long Swings

Window

Scan Code From www.StockScanPRO.com:
(sma(volume,20) >= 500000) and (close() > 7) and (adx(10) > 30) and (pdi(10) > mdi(10)) and (high() < sma(close,5))

Results for NASDAQ

Results for NYSE

Results for AMEX

BND

AMEX

Vanguard Total Bond Market ETF

6/1/2010

Results for NYSEARCA

AGG	NYSEARCA	iShares Lehman Aggregate Bond Fund	6/1/2010
EDZ	NYSEARCA	Emerging Markets Bear 3x Shares	6/1/2010
EEV	NYSEARCA	ProShares UltraShort MSCI Emerging Markets	6/1/2010
FXY	NYSEARCA	CurrencyShares Japanese Yen Trust	6/1/2010
IEF	NYSEARCA	iShares Lehman 7-10 Year Treasury Bond Fund	6/1/2010

Swings

Scan Code From www.StockScanPRO.com:
(sma(volume,20) >= 500000) and (close() > 12) and (force_index(3) <= 0) and (force_index(13) >= 0) and (adx(10) > 30) and (high() < high()[-1]) and (high()[-1] < high()[-2]) and (close() > sma(close,10)) and (close() > sma(close,20))

Results for NASDAQ

Results for NYSE

Results for AMEX

Results for NYSEARCA

1-2-3-4

Scan Code From www.StockScanPRO.com:
(sma(volume,20) >= 500000) and (close() > 12) and ((adx(10) + adx(20))/2 > 30) and (pdi(10)+pdi(20) > mdi(10) + mdi(20)) and (low() < low()[-1]) and (low()[-1] < low()[-2]) and (high() < high()[-1]) and (high()[-1] < high()[-2])

Results for NASDAQ

Results for NYSE

SY	NYSE	Sybase, Inc.	6/1/2010
UHS	NYSE	Universal Health Services Inc.	6/1/2010

Results for AMEX

Results for NYSEARCA

FXY

NYSEARCA

CurrencyShares Japanese Yen Trust

6/1/2010

Cross

Scan Code From www.StockScanPRO.com:
(sma(volume,20)>=500000)and(close() > 12)and(sma(close,5)>sma(close,15))and(close() < sma(close,5))and(close() > sma(close,15))and(high() < high()[-1])and(close() > open())

Results for NASDAQ

Results for NYSE

DAL

NYSE

Delta Air Lines, Inc.

6/1/2010

Results for AMEX

Results for NYSEARCA

AGG	NYSEARCA	iShares Lehman Aggregate Bond Fund	6/1/2010
FXY	NYSEARCA	CurrencyShares Japanese Yen Trust	6/1/2010

Triangle

Scan Code From www.StockScanPRO.com:
(sma(volume,20) >= 500000) and (close() > 12) and (close() > sma(close,20)) and (high()[-2] > high()[-1]) and (high()[-2] > high()) and (low()[-2] < low()[-1]) and (low()[-2] < low()) and (high()[-1] > high()) and (low()[-1] < low())

Results for NASDAQ

Results for NYSE

LXK

NYSE

Lexmark International, Inc.

6/1/2010

Results for AMEX

Results for NYSEARCA

Reverse

Scan Code From www.StockScanPRO.com:
(sma(volume,20)>=500000)and(close() > 12)and(high()[-2] > high()[-1])and(high()[-1] > high())and(low()[-2] > low()[-1])and(low()[-1] > low())and(close()[-2] <= open()[-2])and(close()[-1] <= open()[-1])and(close() >= open())and(volume() > 1.5 * sma(volume,20))

Results for NASDAQ

Results for NYSE

Results for AMEX

Results for NYSEARCA

Breakouts

Scan Code From www.StockScanPRO.com:
(sma(volume,20) > 200000)and(close() > 7)and(high() >= max(high,40))and(high()[-1] >= max(high,40)[-1])and(volume() > 1.5 * sma(volume,20))and(close() > open())and(volume()[-1] < sma(volume,20))and( (close() - low()) >= (0.75 *(high() - low())) )

Results for NASDAQ

Results for NYSE

Results for AMEX

Results for NYSEARCA

Revival

Scan Code From www.StockScanPRO.com:
(sma(volume,20)>=500000) and (close() > 12) and (close()[-1] - low()[-1] <= 0.1 *(high()[-1] - low()[-1])) and (close() - low() >= 0.95 *(high() - low())) and (close() > sma(close,15)) and (close() > sma(close,50))

Results for NASDAQ

Results for NYSE

Results for AMEX

Results for NYSEARCA

Reversals

Scan Code From www.StockScanPRO.com:
(sma(volume,20) >= 200000) and (close() > 12) and (low() <= min(low,40)[-1]) and (volume() > 2*sma(volume,20)) and (close() > open())

Results for NASDAQ

Results for NYSE

GLF

NYSE

GulfMark Offshore, Inc.

6/1/2010

Results for AMEX

Results for NYSEARCA

Short Swings

Cross

Scan Code From www.StockScanPRO.com:
(sma(volume,20)>=500000) and (close() > 12) and (sma(close,5) sma(close,5)) and (close() < sma(close,15)) and (low() > low()[-1]) and (close() < open())

Results for NASDAQ

Results for NYSE

ALV	NYSE	Autoliv Inc.	6/1/2010
AMX	NYSE	Amrica Mvil S.A.B de C.V.	6/1/2010
BEC	NYSE	Beckman Coulter, Inc.	6/1/2010
CNC	NYSE	Centene Corporation	6/1/2010
DEO	NYSE	Diageo plc	6/1/2010

Results for AMEX

SLV

AMEX

iShares Silver Trust

6/1/2010

Results for NYSEARCA

AGQ	NYSEARCA	ProShares Ultra Silver	6/1/2010
EWZ	NYSEARCA	iShares MSCI Brazil Index Fund	6/1/2010
GDX	NYSEARCA	Market Vectors Gold Miners ETF	6/1/2010

1-2-3-4

Scan Code From www.StockScanPRO.com:
(sma(volume,20) >= 500000) and (close() > 12) and ((adx(10) + adx(20))/2 > 30) and (pdi(10) + pdi(20) < mdi(10) + mdi(20)) and (low() > low()[-1]) and (low()[-1] > low()[-2]) and (high() > high()[-1]) and (high()[-1] > high()[-2])

Results for NASDAQ

Results for NYSE

AZN	NYSE	AstraZeneca Group plc	6/1/2010
BKC	NYSE	Burger King Holdings, Inc.	6/1/2010
DEO	NYSE	Diageo plc	6/1/2010
GSK	NYSE	GlaxoSmithKline	6/1/2010
HNT	NYSE	Health Net, Inc.	6/1/2010

From: Your man in Washington

Re: Embracing the status quo

Here we go again �" from the looks of it, price is forming another classic Rounded Reversal Pattern complete with negative divergences, which would forecast a retest of 1,040.

Let’s see what levels to watch that would confirm or disconfirm that view from a chart perspective:

(Click for full-size image)

Quick commentary shows us the classic “arc” pattern formation �" Rounded Reversal �" that has developed on the 15-min chart �" red line.

The BLUE line is the rising trendline that price broke today to the downside �" that’s the aggressive (first) point to get short for a potential short-term reversal or short-sale trade.

The GREEN horizontal line represents the “Line in the Sand” or the official trigger point to get short to target 1,070 minimum or 1,040 (more likely) if the S&P 500 breaks solidly beneath that level �" it stands at 1,080 (easy to remember).

The price that would DISCONFIRM or make this a failed pattern is a break back above the recent high at 1,100 (which would likely trigger a quick round of “popped stops” from those who are short).

Notice the distinct negative momentum (blue oscillator) divergence that occurred, along with the negative TICK high divergence, as highlighted with the yellow vertical rectangle.  That’s a classic hallmark of a market in transition/reversal.

For past posts showing prior examples of Rounded Reversal patterns, see:

“Rounded Reversal and Sell-off in Intraday Crude Oil �" May 4″

“April 6th Update on the Rounded Arc in the NASDAQ”

“Intraday Rounded Reversal Arc into Support in Goldman Sachs GS”

Lesson:  “Rounded Reversal, Dual Divergence, and Trendline Break �" SPY March 25”

And as always, to keep up with my daily market commentary/analysis/education posts, check out my Intraday “Idealized Trades” Commentary service.

Rounded Reversals are becoming one of my favorite price patterns �" take time to learn this concept if you aren’t sure of how to trade it when the pattern repeats.

Corey Rosenbloom, CMT
Afraid to Trade.com

Since there are so very few Indian stocks trading on the U.S. exchanges, most of the well known names have been on my radar for years. One such example is Dr. Reddy's Laboratories (RDY) which I've had on various watch lists for years on end but never once bought. [Nov 9, 2009: Dr. Reddy's Laboratories Impressive on Both Fundamental and Technical Basis] As I am scanning to see what is performing on a day like today (where breadth is actually quite poor) this stock is shining. In fact it's at a 52 week high; I can find no particular news to drive it today and indeed its last earnings report a month ago was ok but no great shakes. It is well over 20x forward estimates and analysts actually dropped EPS for "2010" (year ends March 11) by 20 cents, from $1.57 to $1.37. But for whatever reason (perhaps the launch of quite a few drugs in the future) the market likes the name.

Established in 1984, Dr. Reddy's Laboratories (NYSE:RDY - News) is an emerging global pharmaceutical company with proven research capabilities. The Company is vertically integrated with a presence across the pharmaceutical value chain. It produces finished dosage forms, active pharmaceutical ingredients and biotechnology products and markets them globally, with focus on India, US, Europe and Russia. The Company conducts research in the areas of cancer, diabetes, cardiovascular, inflammation and bacterial infection.

While the close is more important than the intraday action as I type the stock looks to be breaking over early April 10 highs.



May's commentary on earnings report via Reuters:

• India's Dr Reddy's Laboratories (RDY) lagged analyst expectations in quarterly profit, but expects the launch of more than a dozen new drugs in the United States to boost growth in this financial year.
• "We are planning to launch 12 to 13 products this year in the United States, and some of them will be very significant," Prasad told Reuters in a telephone interview from the company's headquarters in southern city of Hyderabad.
• Chief Executive G.V. Prasad said a pick-up in sales of omeprazole, a generic version of AstraZeneca's Prilosec, in the months ahead was also expected to underpin growth in the year that began on April 1.
• The Indian generics business boom has lured Western drug makers that want to raise exposure in fast-growing emerging markets where a burgeoning middle class wants the assurance of cheap, safe drugs.
• The New York-listed company reported a net profit of 1.7 billion rupees ($37 million) in the quarter to March, its fiscal fourth quarter, compared with a loss of 9.8 billion in the year-ago period.
• Revenue fell 18 percent to 16.4 billion rupees, as sales in the United States, its biggest export market, nearly halved to 3.5 billion and European revenue declined by a third to 2.1 billion.

If you’re a futures trader, or just watch the overnight/pre-market futures for guidance on what to expect for the trading day, then you’ve likely been thrown for a few loops the last few days.

The futures will be sharply lower then right as the market opens, we’ll have a sudden surge higher… or vice versa where the futures point to a higher open, but the market sells-off sharply by mid-day or into the close.

I wrote about this three day in a row turn of events in my prior post:

“The Recent Contradictory Overnight Sessions and Intraday Reversals.”

However, there’s another benefit �" that’s not so puzzling �" that watching the overnight futures levels can grant you:  watching overnights highs/lows and congestion areas for possible turning points during the day session.

Let’s take today for an example:

(Click for full-size image)

The futures market was actually open part of the Memorial Day holiday Monday, so some traders could have traded that session.

Others who took the holiday could have referenced what happened during the non-NYSE Market hours for a reference for today.

The sharp sell-off did not result in a lower session, or at least we had another stellar intraday reversal up after a sharply down futures pre-market session.

However, what’s interesting is that the intraday high so far �" as of 11:30 EST �" came back into the congestion/range area of Monday’s (May 31st) session and then formed a reversal candle and began falling just shy of the 1,095 @ES futures level.

If you’ve ever heard someone saying “I watch the GLOBEX highs and lows for potential support and resistance levels intraday,” then this chart reveals exactly what they mean.

The “GLOBEX” or Global Exchange (non-NYSE hours) high near 1,095 was also the high �" so far �" for Tuesday’s trading session.

That’s not to say we can’t exceed that intraday later in the session, but it did serve as a sharp resistance level as price tested the GLOBEX highs… and price retraced lower.

You could have used that as a known profit target to play for if you were long from the morning rally, or as a spot to put on an aggressive short-sale position if you anticipated price would find at least marginal resistance there.

It’s an interesting example, nonetheless.

Corey Rosenbloom, CMT
Afraid to Trade.com

My near- and intermediate-term pattern and momentum work in the iShares German Index Fund ETF (NYSE: EWG) argue that all of the action from the Oct '09 high at 23.40 into last Tuesday's low at 17.97 represents a completed corrective period in that aftermath of the Mar '09 to Oct '09 advance. Let's keep in mind that current strength comes off of 17.97, which was the 50% support plateau of the entire upleg during 2009, and a sign that the EWG is trading very technically at the moment.

insert.a.chart.EWG

In addition, let's notice that at last week's low at 17.97, daily RSI established a higher low, suggesting strongly that the EWG "bears" were running out of steam. At this juncture, I am expecting the EWG to establish a near-term, base-like formation between 19.50 and 18.60 during the upcoming days prior to a run at 22.00.

Year 3, Week 43 Major Position Changes

To see historic weekly fund changes click here OR the label at the bottom of this entry entitled ' fund positions'.

Cash: 83.0% (v 84.5% last week)
18 long bias: 13.7% (v 13.5% last week)
3 short bias: 3.3% (v 2.0% last week) [Includes 1 'long dollar' position]

21 positions (vs 20 last week)

Weekly thoughts
A strange week to be sure - a very rare down Monday was followed by a plunge Tuesday morning to February 2010 lows in the S&P 1040s... this led to an intraday bounce of roughly 3%. Thursday also was a +3% day on nothing more than China refuting a report that it was reviewing European debt holdings. So in one week we had two intraday 3% moves; the one on Tuesday was at least "playable" as it happened during the day and we had massively oversold conditions, and a very clearly defined support level. The one Thursday was mostly done in premarket after a very bad previous day close (Wednesday) and hence not useful for anyone but daytraders. To close out the week, rather than the normal quiet, gleeful session we have before a holiday an actual selloff took place ... and a key support level of S&P 1094 was broken.


Not mentioned above is the very strange action in the market day to day - we are seeing vacuums both to the upside and downside which are dangerous to one's portfolio. A week ago there was a 1.5% move up in the last 17-18 minutes of the day and then last Friday the market was crunched to the tune of about 7 S&P points in the closing 4 minutes. Up or down - it is not a sign of a healthy market and seems to display a market without much depth to it. The other issue is every day except Friday we were waking up to +/- 1%+ moves in premarket which are simply impossible to deal with - the headline risk and knee jerk reactions are too much at this moment.

At this point it seems last week was an oversold bounce based on the action Thursday and Friday. Easy to say in retrospect - especially when bears are fearful that old technical analysis rules no longer work since they have been made a mockery of during the move up since March 2009. This time around they seem to actually be working as they used to. While the move up was strong (Tuesday and Thursday were about +6% combined) it simply took the S&P 500 to its 200 day moving average, which actually held this time around. Until this level is recaptured it is difficult to make a bevy of long side moves of intermediate term duration. Everything right now is just traders jumping in and out for hours at a time chasing an algorithm.

Currencies continue to dominate - last week I sold most of our remaining US dollar exposure thinking maybe we'd have 3-4-5 days of calm but perhaps not. While the dollar did pullback, it did not pullback much - so as I said when I sold our exposure, if the dollar breaks to a new high we'd get some exposure back.



Of course this would mean the Euro is most likely moving to new lows after it experienced an oversold bounce. I was hoping again for a 3-4-5 days of calm and for this currency to jump higher to perhaps short it.



Oversold reading overall still seem extreme - these are levels last seen in March 2009 but leads us unable to find many new ideas as so many stocks are broken and battered. Countless stocks I reviewed show stocks that broke support the past month, and simply used last week's rallies to jump back up to resistance ... these are charts to short, not go long. They are everywhere.

---------------------

June is sort of an off month as earnings reports don't start back up in earnest until July and volume things out even more as vacation season starts for Wall Street. As for economic data all eyes are on Friday's job reports - with 400K census jobs coming in (according to estimates) the calls for job gains of 500-600K are prevalent. Recall last month well over 100,000 jobs were 'created' by the birth/death model (i.e. finger in the air guesswork) - which has been the case, more or less 10 of every 12 months even during the Great Recession. So why change now? This week's reports:

Tuesday - (a) ISM Manufacturing; this has been an area of strength for the U.S. economy as Asia (namely China) chugs along. Unfortunately in the new paradigm domestic economy, manufacturing is only 13% of output and 9% of jobs. Hence ISM Services, which gets much less attention should be the focus. (b) Construction Spending

Wednesday - Pending Home Sales

Thursday - (a) ISM Services; this has turned up to expansion the past few months; consensus is a reading just under 56. At this point other than jobs this is probably the most important report. (b) Factory Orders (c) Productivity & Costs

Friday - (a) Jobs.

----------------------------------

For the portfolio there was little to do. I was mostly out of most major positions except for 2 - Tibco Software (TIBX) and F5 Networks (FFIV) and the early week selloff effectively had me cutting back these last 2 holdouts, which marked the short term bottom. The rest of the week I did some reconfiguring and cleaning up - mostly moving from weaker charts to stronger charts but not really changing my allocations much since the market was so volatile and was still below the 200 day moving average. The one positive of the current market is relative strength is obvious .. much more so when everything is rising up in one monolith.

On the long side:

• Tuesday, as the market swooshed down I was taken out of larger positions in F5 Networks (FFIV) and Tibco Software (TIBX) as they finally broke support... F5 regained support by the end of the day as the market rallied from -3% to flat for the day. Both positions were pared back.
• Intercontintental Exchange (ICE) was closed simply because I wanted to open spots for other positions in the fund; however the stock regained support by the end of the week as well showing some nice relative strength.
• I began stakes in Polaris Industries (PII) and Valassis Communications (VCI) both on relative strength in their charts - the former name also announced they were moving hundreds of jobs to Mexico and away from America. What's not to love as a dog eat dog capitalist?
• Thursday, I closed NetLogic Microsystems (NETL) as the stock had broken support and rallied into resistance. One of hundreds upon hundreds of similar charts, which scream short rather than long.
• I replaced NETL with Chinese chip market Spreadtrum Communications (SPRD) - which probably has the strongest chart of any right now in the market. The only problem is it is overextended; hence just a starter stake.
• Quality Systems (QSII) reported and missed, somehow the stock was only down 5% - but with the chart broken I decided to part ways and look to replace it with something else in the future.
  

• Wednesday, I sold the majority of the remaining long dollar position in Powershares DB US Dollar Bullish (UUP).
• Thursday on the swoosh up day, I attempted to short both Ross Stories (ROST) and Steve Madden (SHOO) - 2 retailers. I was stopped out of the Steve Madden position within hours for a minor loss.

EUR/USD

The Euro consolidated above 1.2250 in Asian trading on Monday, but struggled to make much headway with gains capped around 1.2330 in subdued trading conditions.

The number of speculative short Euro positions remains at very high levels and this will tend to limit the scope for further aggressive currency selling. There will still be an underlying lack of confidence in the Euro-zone economy and the currency which will limit potential Euro support. In particular, there will be fears over longer-term capital outflows from the region. There was also a decline in the latest Euro-zone industrial confidence indicator.

There were further concerns over longer-term ECB policies as the bank increased its buying of European bonds. Bank President Trichet also warned that the Euro has serious problems with its fiscal rules.

US markets were closed for the Memorial-Day holiday which stifled activity, especially with UK markets also closed.

There will be optimism over near-term US economic prospects, especially if there is a robust reading for the ISM manufacturing report. There will also be confidence in a firm US employment report on Friday which should maintain some support for the dollar.

Regional Fed President Evans stated that the Euro-area difficulties could delay a US interest rate increase somewhat, but markets will still be expecting the US to tighten policy ahead of the Euro area. Chinese officials expressed unease over the risk of a double-dip recession which curbed risk appetite. The Euro consolidated close to 1.23 later in the day.

Source: VantagePoint Intermarket Analysis Software

Call now and you will be provided with FREE recent forecasts
that are up to 86% accurate * 800-732-5407
If you would rather have the recent forecasts sent to you, please go here

Yen

Equity markets proved resilient on Monday and the US currency pushed back to the 91.40 area as month-end exporter dollar selling also faded.

The Japanese currency was unsettled by political considerations as the Social Democrats announced that they would leave the coalition government with a dollar spike above 91.50.

There were no major leads from global equity markets during the day and the dollar was unable to extend gains later in the session as caution was still an important influence. The US currency settled around 91.25 against the yen.

Sterling

Sterling found support on dips to the 1.44 area against the dollar on Monday and rallied steadily during the day with a move to highs around 1.4540 in quiet trading conditions.

Budget policy will remain an important focus during the next few days and weeks. The resignation of Chief Secretary to the Treasury Laws is important as he was due to play a pivotal role in agreeing long-term structural government spending cuts.

There will be increased market unease and greater doubts whether a credible deficit-cutting package will be achievable. In this environment, Sterling sentiment could prove to be very brittle. The manufacturing PMI index will be watched closely on Tuesday to assess the state of industrial activity.

Swiss franc

The dollar found support below 1.1550 during Monday and rallied to a high just below 1.16 as ranges narrowed sharply from recent levels. At one point, the Euro spiked above 1.4250 against the franc, but was unable to sustain the advance and it retreated to lows around 1.4170 before consolidating near 1.42.

There was no evidence of National Bank intervention during the day. The Swiss currency should continue to gain underlying support from a lack of confidence in the Euro-zone economy.

Source: VantagePoint Intermarket Analysis Software

Call now and you will be provided with FREE recent forecasts
that are up to 86% accurate * 800-732-5407
If you would rather have the recent forecasts sent to you, please go here

Australian dollar

There were Australian dollar lows near 0.8430 against the US dollar on Tuesday before a recovery to 0.8480 as international risk conditions stabilised. Confidence in the domestic and international economy is likely to remain more fragile in the short term. Despite optimism over emerging-market growth, there will be an overall sense of caution surrounding the growth outlook within the G7 area and this is likely to limit demand for the Australian dollar.

The currency was unable to make a further attempt at breaking resistance near the 0.85 level and it dipped to lows below 0.8400 later in the day before rallying to the 0.8450 area.