Wednesday, February 28, 2007

Trade Ideas: FRZ, VMI, WCN, PRA, RHD, TNP, WG, CBR

Trader's toes get dipped back in the water and today was unlikely to have seen any great retracement to yesterday's selling. There were a number of positives - most notably the confirmation of support of November-January channel support in the NASDAQ and NASDAQ 100, not to mention the picture perfect test of support in the Russell 2000 rising channel. In the short term I would look for bounces to Fibonacci retracements; for the Dow this is around 12,525; the Nasdaq it is 2,481; the Russell 2000 it's 812; and for the S&P look to 1,433. Expect shorts to get dirty around these levels. Long term, I think it is time for a test of the 200-day MAs. Internals are still well inside overbought territory and it will take more convincing selling to bring these internals down.






A reflection of the decent buying (considering) witnessed today was found in the Trade Ideas scan; the first 8 picks covered a time span of 10 minutes; with the "Fab-20" of 8 picks making 20 appearances or more over the day, coming in at 1 h 40 minutes. Considering the latter over the last few days has often required the whole day to come up with any picks this action is pretty impressive.



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