Thursday, January 11, 2007

Trade Ideas: AVZ, JRN, GPS, KNL, PTP, VZ, FCH, JCI

Tech is having a great day and is pulling the other indices up with it. I took a quick look at Richard Lehman's Trend Channel Stockchart public list and he has the Nasdaq breaking upside from a 3-year rising channel (The S&P did something similar back in October). The Trade Ideas scan was surprisingly limp considering; 8 picks covered a time span of 13 minutes - yesterday's buying was better than today's, even though today marked a significant technical break (i.e. an end to Nov-January sideway channels).

Two picks: Gap (GPS) and Johnson Controls (JCI) made it over the 20 appearance mark at 30 hits and 22 hits apiece. Stocks liks Amvescap (AVZ) and Platinum Underwriters Holdings (PTP) linger in the high teens on the daily scan hits.

As for bullish MA crosses inside the last 2 months: Amvescap (AVZ), Gap (GPS), Platinum Underwriters (PTP), Verizon (VZ), and Felcor Lodging Trust (FCH) all made the grade.

As mentioned recently, Amvescap (AVZ) is shaping a cup-and-handle. Gap (GPS) is building a scrappy sideways consolidation wedged between $19 and $21. Look for move to $26 when it break. Knoll (KNL) has formed a 'cup', but as yet, no 'handle'. When it does, look for a move to $27. Platinum Underwriters (PTP) has formed a 4.5 month bullish ascending triangle; buy break of December highs and look for a move to $36. Verizon (VZ) has shaped a mini-base of 2 months; a measured move target would be $42. Felcor (FCH) should be kept on a watch list until it clears $22.50 given it has spent the last year meandering between $19 and $22. Johnson Controls (JCI) has formed a handle-on-a-handle. A break of $90 could see a move to $115.

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