Wednesday, January 10, 2007

Trade Ideas: BBD, CRH, NOC, MNT, EWH, ARM, BFR, CLF

The market is making another small advance, but nothing so far (with the possible exception of the semi-conductors) to suggest the sideway trading in the markets is about to change. The Trade Ideas scan was more buoyant; 8 picks covered a time span of 2 minutes - healthy buying.

Where the enthusiasm was somewhat tempered was in the frequency of this buying. So far, no pick has exceeded 20 appearances, although CRH (CRH) at 17 hits looks most likely to do so by days end.

A couple of the picks have managed a bullish cross of their 50-day MA by the 20-day MA inside the last 2 months: Mentor Corp (MNT) and Northrop Grumman (NOC). No pick has made a bearish cross of these averages.

The 1-year charts show a potential cup-and-handle in Banco Bradesco (BBD), give the stock a few weeks to form a handle as it works it way through $42.00 resistance, but this is good watch list material. Nothrop Grumman (NOC) has featured recently in this scan in the past and continues to develop a consolidation triangle. Mentor (MNT) is working off a positive test of its November Breakout gap. This is looking good to break $54. Trend traders can look to HongKong iShares (EWH) and Banco Frances (BFR) - although both their ascents are looking a little steep to be sustainable over the longer term.



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