Stocks on my Watch List

• Posted by Joe Fahmy
• on December 13th, 2009

Over the past month, I have pointed out that the trend of low volume bothers me because it shows a lack of conviction from the large institutions. One thing that would give me more confidence in the stock market would be finding stocks that are building sound technical bases and breaking out on strong volume. While going over my weekend stock screens, I noticed a large number of stocks that are currently doing this.

Although I have recommended caution recently, I have mentioned several times to pay attention to stocks and to keep an open mind. It is very possible that the recent trading range and low volume could simply be a consolidation of the strong move we had since the March bottom before we break out to new highs. I am beginning to think this might be the case, mainly because I am finding a good deal of stocks that are "holding up" well and look like they want to go higher.

If the NASDAQ Composite can break out of the 2200 range, and do so on convincing volume, I would focus on the following stocks:

1) Big Caps: $AAPL $GOOG $PCLN $AMZN $ISRG $BIDU. While looking at their Weekly charts, you will notice that these stocks continue to go up on strong volume and pullback on lighter volume. This trend seems constructive to me and we could see more upside soon.

2) Retail: I was surprised to see a number of Retail stocks both building bases and breaking out on strong volume last week. Maybe the market is telling us that the consumer is not dead yet. Some ideas worth watching include: $DDS $JWN $ANN $COH $SKX $DSW $GES $HGG $JCG $PSS $WSM $KIRK

3) China stocks: $HEAT $RINO $TRIT $CAAS $HMIN $WATG $APWR

4) Internet security: $BCSI $FIRE $RAX

5) Biotech: $HGSI $JAZZ $SLXP

6) Chemical/Fertilizer: $SCL $SQM $ASH $GRA $ROC

7) There continues to be INSANE speculation in the Dec, Jan & March $UUP 23 calls. This tells me the Dollar is not going to rally anytime soon. Therefore, I would use the recent pullback in gold as a buying opportunity: $IAG $GOLD $CDE $TCK $GLD (the gold ETF).

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!

Follow me on Twitter @jfahmy

Tickers: AAPL, AMZN, ANN, APWR, ASH, BCSI, BIDU, CAAS, CDE, COH, DDS, DSW, FIRE, GES, GLD, GOLD, GOOG, GRA, HEAT, HGG, HGSI, HMIN, IAG, ISRG, JAZZ, JCG, JWN, KIRK, PCLN, PSS, RAX, RINO, ROC, SCL, SKX, SLXP, SQM, TCK, TRIT, UUP, WATG, WSM

blog comments powered by Disqus