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Oh to be in Hawaii now...

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Winter in full swing in Dublin; dark and chilly. But not so long ago it was Boccoe and Beer at chez Kaimuki, HI:

Cosan (CZZ)

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This featured as a member [$] pick last week. The stock continues to provide solid bullish action with Thursday's and Friday's action confirming $13.36 as support. The original stop from $12.79 can be raised to around $13.29. As a 2007 IPO the stock has no overhead resistance, so it is well placed to move higher from here. The stock has listed options , but not the liquidity to make them worthwhile.

Stockcharts.com Weekly review

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With such a bad start to January, what had the Stockcharters to say about it: Joe Reed 's summary opening: THE POSITIVE: ***The Word of the day (and possibly for the year) is 'UNCERTAINTY'. But believe it or not there are TWO POSITIVES to keep in mind... *The Republicans do not want a RECESSION before the Election and they will do everything in their power to prevent it. This MIGHT be enough to keep the market afloat for a while, POSSIBLY. Also, an Inverted Yield Curve PRECEEDS most recessions which has not happened yet. THE NEGATIVE: 1-7-08 **The 220 and 256 point Dow drop is a HORRIBLE FIRST WEEK OF THE NEW YEAR! And often the first week is reflective of the whole year. So watch out, stay defensive, and short the weak ones for good profits. Joe has taken Chip's chart (which I have added here!). I suspect weekly low support of 2007 will hold in this decline, but a move to 2006 lows would not be surprising later on in the year (or early 2009). Joe has his eyes on a cros

Where is the market bottom?

Markets continue to toy with a bottom, but the bullish percents haven't suggested one is complete - yet. The Bullish percents for the Dow and S&P sit at logical support. But the Nasdaq Bullish percents have entered cylical bear levels, so look for shorter rallies from this index.

Gap (GPS)

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Maybe not the first name to jump out of box, but this old dog (it has been caught in a trading range since 2004) might be about to learn a new trick. The chart shows a steadily rising price trend helped by the recent 'Golden Cross' between the 200-day and 50-day MAs. The past two days have seen some demand at the 200-day MA as indicated by the long, lower tail candlestick shadows - one of which also finished as a 'dragonfly doji'. Technicals are a bit of a mixed bag, but the accumulation trend in on-balance-volume is clear. There may be a concern with the break of the August-November trend, but using the 200-day MA or candlestick lows for stop placement will help define downward risk. Options ; short term traders will be looking to the 20-day MA as a target (currently at $20.80); but the $20 Jan strike at $0.50 from the ask looks expensive, with the $20 Feb strike at $0.90 only marginally better. Best short term play would be the $15 Jan strike at $4.50 ($0.15 time prem

Essential Reading

Wall St Warrior sees good strength in the DJ US Medical Services Index ETF expert is sticking with Utilities Stock Trading to go is looking for a bright start for Thursday Brett's comment on Wednesday's action is telling: Nearly half of those 20-day lows, however, were also 52-week new lows. There is a core group of stocks that are quite weak; small caps are notable in that regard; financials and homebuilders continue to lead the downside (and were an excellent tell for the late weakness on Tuesday). Among NYSE common issues, we had 40 new annual highs against 390 new lows. The failure of the weakness to attract any sustained buying has been worrisome: bottoms are usually formed when we get very strong buying on high volume at price lows, as institutions pick up bargains. No bargain hunting yet. Or are too many waiting for a bounce . Ugly has taken a slice of EHTH Trader's Narrative is looking for a reprieve in financials .

Essential reading

Headline charts on Interest rates and the dollar Headline charts (again) on Sector Strength : His Growth/Value comparison, and Cyclical index comparison charts are excellent. Bill (No DooDahs) has voiced concerns on the lack of volatility. Also noted by Bill (Vix and More) last Friday. No fear likely means no bottom. Jack Haddad has gone long the Diamonds (DIA). A must-do subscribe feed. Nice bullet point summary from Stockbee , with two sectors to watch. Datawink was looking for " extreme weakness " in the Dow from December 21st. AC Investor has a solid list of stocks for Wednesday TraderMike has a quick chart summary for the market Brett Steenbarger's lesson of the day Finally, Subscribers (first 30-days free - hit the "Subscribe" button located below my links) can get my newsletter via Twitter

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