Pullback Trade Ideas - Jeff Pierce

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I’m a swing trader of momentum stocks with a holding period of anywhere from a few hours to a few months. I run a number of screens to locate the strongest/weakest stocks out there, using technical analysis to determine my entries and exits. Trying to calculate the intrinsic value of stocks in... More

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Pullback Trade Ideas 3 comments

Feb 9, 2011 10:16 PM | about stocks: MGA, ALY, GTAT

As this market continue to set new highs, it’s important not to chase stocks. I see nothing in the Nasdaq charts that imply we’re going to correct, but I would like to see some sideways action to consolidate these gains (I realize I sound like a broken record). The Dow has really been the leader and is seeing signs of moving too far to fast as seen by the 4ema moving above the Keltner channel here. Typically when this happens the markets are overbought.
SOLR and ALY both represent stocks that are undergoing a correction but look as if these pullbacks have almost run their course.

MGA doesn’t have a clear technical pattern to base a buying point off of but I believe the 50 moving average will provide support based on the extreme bullish of the long term chart. This continues to plow ahead and hit unchartered territory. In fact, we may have seen the lows last week as the 50ma slopes upward and the next touch will be higher than last weeks low. (See 60min chart for a closer look at the intraday action). The fact that the RSI refuses to go below 50 illustrates the strength of this chart.

Themes: Momentum Stocks Stocks: MGA, ALY, GTAT

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GeneMorris34 Comments (6)

Hey Jeff,
Long time listener, first time caller. I like the VIX on the pullback, but what are your thoughts on JOE. Can of worms? Any comments would be appreciated.
-Gene

11 Feb 2011, 12:11 PM Reply Like

Jeff Pierce Comments (935)

Stock has been in a downtrend ever since it peaked in '05. While it may have found a bottom in '09, it's too tough to say and there are much better buys out there.

What is it you like about this stock?

11 Feb 2011, 02:58 PM Reply Like

GeneMorris34 Comments (6)

"Ridiculous activity" as of late. MF vs HF manager duking it out in plain sight over a Florida Real estate co. Fairholmes' Berkowitz is a majority holder, just brought in a MorganStanely to sell / work out details of potential merger. Perhaps i'm making something out of nothing, but Berkowitz just brought in former Florida Govenor Crist as a board member. Most valuations i've read show most property holdings as not marked to the market / overvalued. I could only surmise that the greatest up side would come from perhaps M/A activity that could provoke short squeeze (huge short interest)? Once again, a bit off topic, but ive been attempting to derive some sort of candlestick shapes out of it to no avail. Thought I'd stop by and have you take a look. Any thoughts?

11 Feb 2011, 06:12 PM Reply Like