Market Notes (10/15/09)

• Posted by Joe Fahmy
• on October 15th, 2009

Stocks I am watching for possible breakouts soon (followed by some quick notes, so please excuse the grammar):

$QSII: The chart is getting excruciatingly tight the past few days, a sign that the sellers are drying up. Medical software sector is strong. Approx. 30% of the stock's float is short, could fuel some upside above $66 soon, support in the 62-63 area.

$DNDN and $HGSI: Two biotechs acting strong, worth watching.

$GOLD: I love the Weekly chart, every recent up week is on STRONG volume and the down weeks are coming on light volume. This week is tightening up, a good sign. Overall, I believe you can continue to buy gold stocks into weakness and sell them into strength. Other ideas include $CDE $IAG $AEM and $GLD (the gold ETF).

$GMCR: Great Weekly chart. Nice tight, low-volume week so far this week. Approx. 30% of float is short, expecting a short squeeze into earnings later this month.

$FIRE and $RAX: The Internet security sector is strong (also watching $ARST $BCSI and $SWI).

$ISRG: Great shakeout this week. It retested its 10-wk moving average almost to the penny on Tuesday, a sign of institutional support.

Please keep in mind that the purpose of this blog is to help people with idea generation. If you trade some of these stocks, PLEASE, PLEASE, PLEASE use stops. In other words, if some of these stocks turn against you and the market doesn’t cooperate…protect your portfolio! Thank you. Good luck trading!

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Tickers: AEM, ARST, BCSI, CDE, DNDN, FIRE, GLD, GMCR, GOLD, HGSI, IAG, ISRG, QSII, RAX, SWI

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