charts/tape reading

The market doesn't care what I or anyone else says.
The market is the final authority of profits or losses.
That's why it's smart to listen closely to what the market has to say.

One way to look at is ignore noise (news) and focus on charts as the resistance/support/hammer/volume is how the market is saying what it wants to say.

Saturday, December 3, 2011

some weekend reading and observations

AAPL - resistance at 410 and support in the 365-375 range.
SBUX - big article in Fortune magazine; @44 - closer to 52-wk high of 44.7; short-term support at 42 and good support at 41/39;
ISRG - @434; window to the upside at 395-410 on 3*avg vol; recently tested the window when it dropped to 410 and rebounded to its current level;looks like need some digestion of the recent run up.
AMZN - @196; 52 wk high of 247; big window to the downside[225-200] on 4 times volume. so this is no going to go any higher any time soon...rather it'll trend down! has good support around this 185 level though, so can short this one around 205, with a stop loss cover of 220-225 range. good for a pair trade.
CMG - @330; is in a nice uptrend; altho having difficulty in taking out the 345 price level having failed to cross that in previous 3 occasions. so till it crosses that price action, tough to get in...altho should say when it does will run as consolidating for the past 5 mo's in this 300-330 range.
CRM - @120 and is in a downtrend w/ a P/E of 4700! [compare that to the AAPL p/e of around 14]; downside window of 125-120 w/ huge congestion around the 130 level. so can be shorted around current level with stop-loss around 130 level.
MCD - @96; good support at 90 and 86-90 band;recent pullback halted at 92; window at 90-91;
MA - @379; solid uptrend; about a third of the world's credit card bear mastercard's brand; recently gave a clear signal (hammer) at 300. Should wait for a signal like this!
BIDU - in a downtrend.

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