Stock Tiger Update

For Thursday December 7, 2006  

Close Wednesday

Dow -22.35 at 12309.25, Nasdaq -6.52 at 2445.86, S&P -1.86 at 1412.90

Not much going on the the general markets today. There is some indications that a top is near but they say the trend is your friend  - until it isn't. Trends can stay n place longer than one may think. We just keep doing what is working and making profits every day. Today MOVI and ELSE were among the top movers though they did not close at the highs.

I looked at this weekly of the Dow Jones 5000 composite as it contains many ADRs (non USA stocks that trade n the USA). Would think it at least may tag the first resistance line after this big move.

Again this week we had a couple of stocks on our watch list gap open in the morning. You have seen an example like this before but here one more time the simple 15-min rule worked very well. STEC gapped up Tuesday and we drew a line on the 5-min chart at the lowest of the 3 candles and the highest then bought on the break above. This chart shows a drop under the low but it either is bad data or a 1 second drop as I never saw it. The point is to again show the low risk entry as if it did fail you could exit the stock with minimal loss. As it turned out it continued up that mooring. Today it made it to $10.80.

The last poll we did had 284 people respond and we see the largest preference is for stocks between $1-$5.00 as shown here. Today we do not have as many low priced picks but we will have more on the weekend. We have put up a new poll to see what is the most common average amount invested per trade.

If you looked at the Moon Page today you would have seen two warnings that have not been seen in a while. (as of this writing both of these images are in warning mode but they are live links so if you read this is a few days they may be green by then)

Geomagnetic Field says STORM:

Solar X-rays says X-CLASS FLAIR:

When you look at the  Space Weather Outlook you will see a reading of 35 in the Planetary A Index there is often stock market volatility when the reading goes above 30. We will see.

There is not a lot of change in the charts. The Dow is within range to make a move to a new high though volume was light today.

The NYSE still at all time highs. The RSI on the weekly is above 70 so caution area.

The Nasdaq/S&P 500 ratios chart show the Nasdaq at support but would need to boucen soon.

With this however and with some shorting the SMH semi proxy, the SOX is sitting right at a possible break out point.

The Russell 2000 made an all time high yesterday but is is quite far above the 50-day EMA and there is some negative divergence showing on the MACD and the Histogram is also low.

Gold backed off some and stochastics are back to 80 but no signs of impending doom and December is usually a good month for gold and bad for the Dollar.

The XAU/Gold ration shows it broke slightly above the trend and pulled back but expect it will break above soon. The 50-day EMA is now turning up. We have several gold stocks that either recently broke out or may soon.

Oil services have been strong and the 200-day has just gone below the 50-day which is bullish if it holds.

Now we have a collection of new ones for our watch list. We have a lot now so pick the ones you like the beast as you do not have to watch them all.

TIBX is not a strong looking candidate but as the market in general is overbought some stocks can look that way then spring to new life and big volume so we will set our alert.

APA is consolidating in a tight range on low volume with a break out over $70.00 the $72.25.

Lenka pointed out IVAN and it is between the closing space so may make a move pretty soon. It has a break above the trend and 50-day EMA at $1.47

EP is natural gas so lets watch this one also as it has a level her at $14.80 area.

Steel had been doing quite well but several are extended now. MT though could start to move again as this may be a bull flag.

CREE broke out of its bull flag in Tuesday and is still above the 50-day so may play some 50-200 pinball/ We would play it for the buck between $21.50 and $22.50 to start.

Drucwolf showed us HGRD and it is trying to break above $5.00

NMSS is at the 50-day at $2 so may try at least to run to the gap up 10% from here.

PTIE $9.00 would be the break.

QCOM is not a clean setup but worth watching.

GW is oil services and that sector strong so this may break above $7.20.

CNXT in the semis can be a hard one to trade but as the SOX could break out this one could go along if it can get above the 200-day and $2.36