Trading Ideas

• Posted by Joe Fahmy
• on December 16th, 2009

As I mentioned yesterday, the market continues in a trading range but individual stock ideas are working out. For example, some of the stocks I discussed in my blog Tuesday night performed very well on Wednesday: $FIRE +7%, $RAX +5.6%, $JST +4.3%, $DRWI +4%, $ASH 2.1%.

As expected on Wednesday, the Federal Reserve neither changed interest rates nor the language in their policy statement. Now that the Fed is out of the way, the focus over the next 4-6 weeks will be the upcoming earnings season. Therefore, I am going to stick with what's working. That is: "I'm still finding ideas, so I'm going to trade them!" I know this sounds very simple, but it's working right now while the market is stuck in this trading range.

Trading ideas:

1) $AAPL: I think $195 is a great entry point here for $AAPL. Apple Stores are always FULL of people. I know the entire world is expecting huge earnings this quarter with the upcoming holiday sales and the release of the I-Phone on other networks. However, my feeling is you can purchase the stock here with the intention of selling it into a likely earnings "run-up." It should have support in the 186-188 range with possible upside to the 220 area by its earnings release in late January.

2) The following stocks were up on Wednesday and could breakout soon if the market cooperates: $CTRP, $JST, $APWR, $RDY, $CERN, $CRM

3) These ideas paused nicely on Wednesday and could be ready for continued upside soon: $HMIN, $VCI, $CISG, $HGSI, $COT, $LULU (46% short)

4) Chemical/Fertilizer stocks: $SCL $GRA $SOA $ASH $SQM. These all performed well on Wednesday and I'm expecting more upside over the near-term.

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: AAPL, APWR, ASH, CERN, CISG, COT, CRM, CTRP, DRWI, FIRE, GRA, HGSI, HMIN, JST, LULU, RAX, RDY, SCL, SOA, SQM, VCI

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