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BCE, Inc.- Nice Rising Wedge Trade

John Mylant — Sat, 24 Jul 2010 22:20:00 GMT

BCE, Inc.

BCE Inc. provides a suite of communication services to residential and business customers primarily in Canada. Its services include Bell Home Phone local and long distance services, Bell Mobility and Solo Mobile wireless, high-speed Bell Internet, Bell TV direct-to-home satellite and VDSL television, and IP-broadband services, as well as information and communications technology services, such as voice, data, Internet, video, and value-added solutions. The companys solutions for small and medium-sized business customers comprise Internet access; Web hosting; business applications that automate business processes, enhance online presence, secure networks, and support employees; wireless voice and data solutions.

We have a very strong upward wedge taking place here. A rising wedge is characterized by higher lows and higher highs, and should mark the top of the current uptrend. Even though prices continue to rise higher throughout the formation of the pattern, it is still considered a bearish pattern.

When you are getting ready to enter the trade, wait until a candlestick closes outside of the lower rising trendline before entering your trade. Make sure that the volume is strong on the breakdown or the pattern could fail.

Once your trade is entered and your stop loss is set, you have to decide when and how much profit to take out of the trade. Like most other patterns, the target price of the breakdown can be calculated. Subtract the height of the pattern from the breakdown level, and that will give you the target price of the breakdown. Here it is about 5.2

Vanguard Index Funds Mid-Cap Gr (VOL) Head & Shoulders Play

John Mylant — Fri, 16 Jul 2010 23:06:00 GMT

Vanguard Index Funds Mid-Cap Gr VOL

The investment seeks to track the performance of MSCI US Mid Cap GrowthIndex.The fund invests all, or substantially all, of assets in the stocksthat make up the index, holding each stock in approximately the sameproportion as its weighting in the index. The index is made up of abroadly diversified index of growth stocks of medium-size U.S.companies.

The head and shoulders pattern is generally regarded as a reversalpatternand it is most often seen in up trends. It is also most reliable whenfoundin an uptrend as well. Eventually, the market begins to slow down andtheforces of supply and demand are generally considered in balance. Sellerscome in at the highs (left shoulder) and the downside is probed(beginningneckline.) Buyers soon return to the market and ultimately pushthroughto new highs (head.) However, the new highs are quickly turned back andthedownside is tested again (continuing neckline.) Tentative buyingre-emerges and the market rallies once more, but fails to take out theprevioushigh. (This last top is considered the right shoulder.)

We are not quite ready to get in on this stock yet but is is really worth watching closely. When we hit at neckline, about 46.8, then we want to watch for higher volume and when it breaks that line, look for a bearish option play. We have roughly 8 points to work with, so look for a straight Put Play or a Debit spread.

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HMS Holdings Corp. (HMSY) Nice Rising Wedge

John Mylant — Sat, 10 Jul 2010 14:28:00 GMT

HMS Holdings Corp. (HMSY)

Sector: Services
Industry: Business Services

HMS Holdings Corp. provides cost management services for government-sponsored health and human services programs. The company offers coordination of benefits, cost avoidance, and program integrity services, which enable customers to recover amounts due from third parties, avoid and reduce costs, and ensure regulatory compliance. Its coordination of benefits services route claims paid by a government program to the liable third party, which reimburses the government payor; cost avoidance services provide validated insurance coverage information that is used by government payors to reject claims that are the responsibility of a third party; and program integrity services are designed to review claims paid by government programs, identify payment errors, and recover the erroneous payments.

We are looking at a rising wedge here. The rising wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows.

While it is a consolidation formation, the loss of upside momentum on each successive high gives the pattern its bearish bias. However, the series of higher highs and higher lows keeps the trend inherently bullish. The final break of support indicates that the forces of supply have finally won out and lower prices are likely.

We have huge signs here that it is about to break downward so we would get ready to make money with bearish option strategies. We have a large negative divergence with the MACD. This is another indicator of the bearish pattern that will develop.

Look for the support break line at 50 unless it continues to form for the next couple weeks. If this occurs, we are looking at a possible 52.50 break line.

There is no real way to know how far down the stock can fall with these patterns. Other studies of the technical aspect is needed.

Possible Option Plays:

Straight Put Option Purchase
Bear Put Spread (Debit)
Bear Call Spread (Credit)
Selling Naked Calls

Deere & Company Common Stock (DE) Nice Channel Play

John Mylant — Sun, 04 Jul 2010 02:41:00 GMT

Deere & Company Common Stock (DE)

Deere & Company provides products and services primarily for agriculture and fores try world wide. The company operates in three segments: Agriculture and Turf,Construction and Forestry, and Credit.The Agriculture and Turf segment manufactures and distributes a line off arm and turf equipment,and related service parts, which include large,medium, and utility tractors;loaders; combines, cotton, and sugarcane harvesters and related front-end equipment; sugarcane loaders; and tillage, seeding, and application equipment.

We really like the bearish channel that DR has started to trade in. It has formed a very nice channel for us to be able to trade in and make money.

Since this is very bearish at the moment, we want to establish a bearish strategy to make money on this stock. We are going to start by watching the downward trend.

The pattern is pretty pronounced. If we are going to do a BEAR CALL SPREAD, now might want to wait until we hit the top of the the trading channel again and watch as it moves down. We want the calls we sell to lose value on a play like that so the best time to buy is at the top of the trading zone and as it goes back time, we will have time and the devaluation of the stock on our side.

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Nordic American Tanker Shipping Ltd. (NAT) PUT OPTION Play

John Mylant — Sat, 26 Jun 2010 21:51:00 GMT

Nordic American Tanker Shipping Ltd. (NAT)

Nordic American Tanker Shipping Ltd., an international tanker company, owns and operates crude oil tankers. It operates its vessels in the spot market, on time charters, or on bareboat charters. As of December 31, 2008 the company owned 15 double hull Suezmax tankers. Nordic American Tanker Shipping Ltd. was founded in 1995 and is headquartered in Hamilton, Bermuda.

NAT has a nice descending triangle going on right now. The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern. There are instances when descending triangles form as reversal patterns at the end of an uptrend, but they are typically continuation patterns. Regardless of where they form, descending triangles are bearish patterns that indicate distribution.

If one is looking for a play on this, we wish to keep it bearish along with the nature of the formation. Watch for the chart to bounce off the established resistance level. When it is confirmed, we would look for a Put Option play.

Comstock Resources Inc. A Nice Reversal Pattern

John Mylant — Sat, 19 Jun 2010 00:22:00 GMT

Comstock Resources Inc.

Comstock Resources, Inc. engages in the acquisition, development,production, and exploration of oil and natural gas properties in the United States. It has onshore operations primarily in the East Texas/North Louisiana and South Texas regions, as well as Mississippi,New Mexico, Kentucky, and the Mid-Continent regions. As of December 31,2009, the company owned interests in 1,641 producing oil and natural gas wells, and had proved reserves of 725.7 billion cubic feet of natural gas equivalent. Comstock Resources was founded in 1919 and is based in Frisco, Texas.

The falling wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge. In contrast to symmetrical triangles, which have no definitive slope and no bias, falling wedges definitely slope down and have a bullish bias. However, this bullish bias cannot be realized until a resistance breakout. We have broken out of the wedge pattern already and we are now looking for the stock to move upward. We have increased volume on the break out and now if we were to make an option play here, we would look at a September 35 Call option.

Sanderson Farms, Inc. (SAFM) Nice Bearish Option Play

John Mylant — Sat, 12 Jun 2010 12:28:00 GMT

Sanderson Farms, Inc. (SAFM)

Sanderson Farms, Inc., an integrated poultry processing company, engages in the production, processing, marketing, and distribution of fresh, frozen, processed, and prepared chicken products in the United States. It sells ice pack, chill pack, bulk pack, and frozen chicken in whole, cut-up, and boneless form under the Sanderson Farms brand name. Sanderson Farms sells its products to retailers, distributors, and casual dining operators in the southeastern, southwestern, northeastern, and western United States, as well as to brokers. The company was founded in 1947 and is headquartered in Laurel, Mississippi.

We really have taken notice of the well defined downward movement that we have here with SAFM.

In particular the defined resistant points.

Notice that after it peaked, it started to use the 20 day ma as a resistance point and then as it went down farther, the 50 day ma became the point of resistance.

This really shows us strength in a downward trend. Now we continue. We like this for a bearish play. Since this stock is option-able, we would suggest any bearish option play wait until we have a chance to test and bounce off that 50 day ma again. Obviously on a bearish play, we want the options losing value to we want to buy/sell calls.

iShares MSCI Chile Investable Mkt Idx (ECH) Nice Bear Call Spread

John Mylant — Sat, 05 Jun 2010 12:22:00 GMT

iShares MSCI Chile Investable Mkt Idx (ECH)

The investment seeks to track the performance of MSCI Chile InvestableMarket index.The fund invests at least 90% of assets in the securities of theunderlying index or in depositary receipts representing securities inthe underlying index. The underlying index is a free float-adjustedmarket capitalization index that is designed to measure broad basedequity market performance in Chile. The fund is nondiversified.

We have a really nice channel forming here with our ETF of Chile. Since we are just over 2 1/2 weeks out before our June options expiration, we have a really nice looking play here.

A perfect setup for a Bear Call Spread play. And it is a perfect time to get into this play also.

We are expecting this to continue downward after the bounce off the top of the Bollinger Bands . Look at selling a '60' June call at $.70 and buying the '65' at $.60.

This looks like the perfect time to make the play. Or, you may consider buying a straight '50' put at $1.25. We are expecting this to continue in a downward move. And when it bounces off the bottom of the Bollinger Bands, we do not expect it to rise above the last point it was at.

AMERIGROUP Corporation A Bearish Play Developing

John Mylant — Fri, 21 May 2010 23:07:00 GMT

AMERIGROUP Corporation

AMERIGROUP Corporation operates as a multi-state managed health care company. It focuses on serving people, who receive health care benefits through publicly sponsored programs, such as Medicaid, Children Health Insurance Program (CHIP), Medicaid expansion programs, and Medicare Advantage. The company's Medicaid program makes federal matching funds available to various states for the delivery of health care benefits to eligible individuals, as well as allows each state to establish its own eligibility standards, benefits package, payment rates, and program administration under broad federal guidelines.

The double top is a major reversal pattern that forms after an extended uptrend. As its name implies, the pattern is made up of two consecutive peaks that are roughly equal, with a moderate trough in-between.

While the double top formation may seem straightforward, technicians should take proper steps to avoid deceptive double tops. The peaks should be separated by about a month. If the peaks are too close, they could just represent normal resistance rather than a lasting change in the supply/demand picture. Ensure that the low between the peaks declines at least 10%. Declines less than 10% may not be indicative of a significant increase in selling pressure. After the decline, analyze the trough for clues on the strength of demand. If the trough drags on a bit and has trouble moving back up, demand could be drying up. When the security does advance, look for a contraction in volume as a further indication of weakening demand.

Kongzhong Corp. A Nice Bear Call Spread Play

John Mylant — Sat, 08 May 2010 15:41:00 GMT

Kongzhong Corp.

KongZhong Corporation, through its subsidiaries, provides wireless interactive entertainment, media, and community services to mobile phone users in the People's Republic of China. It offers interactive entertainment services, which include mobile games, pictures, logos,karaoke, electronic books, and mobile phone personalization features,such as ring tones, wallpaper, clocks, and calendars; media services that include content, such as domestic and international news,entertainment, sports, fashion, lifestyle, and other special interest areas; and community services, which comprise interactive chat, message boards, dating, networking, and photo albums.

With this nice downward pattern, we can look at a short term play here. A nice Bear Call Spread would work perfectly.

We have the opportunity to use someone's money to make this play and the pattern is very strong. Research the stock and option costs. It might be a nice 10 day option play for May still.

International Game Technology (IGT) A Stock to Watch

John Mylant — Sat, 01 May 2010 15:44:00 GMT

International Game Technology (IGT)

International Game Technology (IGT) designs, manufactures, and markets electronic gaming equipment and systems products worldwide. The company offers casino-style slot machines that determine the game play outcome at the machine; wide area progressive jackpot systems with linked machines across various casinos; central determination system machines connected to a central server that determines the game outcome, encompassing video lottery terminals used primarily in government-sponsored applications and electronic or video bingo machines; amusement with prize games; and pachisuro machines.

We have a nice falling wedge breakout already. Found within a downtrend, the falling wedge is often a reversal pattern. The falling wedge pattern is a contracting trading range with a downward tilt. This may be seen by drawing two trend lines, a steeper trend line connecting minor highs, and a shallow trend line connecting minor lows. The early portion of the wedge has a wider price range, while the latter stages of a falling wedge are characterized by tighter price action. When a falling wedge is a reversal pattern, (as in this case), the widest portion of the wedge may be added to the breakout level to determine the upside move which follows.

We have quite a bit of uptrend to move yet. Nice investment.

Geron Corporation (GERN) A Company Worth Watching

John Mylant — Sat, 24 Apr 2010 16:39:00 GMT

Geron Corporation (GERN)

Geron Corporation, a biopharmaceutical company, develops biopharmaceuticals for the treatment of cancer and chronic degenerative diseases, including spinal cord injury, heart failure, and diabetes. Itdevelops a range of anti-cancer therapies based on telomerase inhibitors and telomerase therapeutic vaccines; and diagnostics based ontelomerase detection, as well as intends to develop products usingtelomerase as a marker for cancer diagnosis, prognosis, patient monitoring, and screening. The company develops Imetelstat (GRN163L),which is in Phase I clinical trial for the treatment of chroniclymphoproliferative diseases, solid tumors, multiple myeloma, and non-small cell lung cancer.

Having successfully defined three bottoms, we are watching this stock to make a break through from this well defined resistance trend line.

A triple bottom is a bullish reversal pattern with three roughly equal lows. But in addition to the three bottoms, which form a sort of support line; a triple bottom will also have a RESISTANCE line established by the high points of the pattern. All the identities of this pattern are easily defined and now we are watching this stock to see if we are going to push through this resistance level any time soon. Over the last couple days, it has certainly challenged it, now let' look for a push through before we invest in it. We could easily see this stock shoot up to 7.50

Unilever plc (UL) A Stock Worth Watching

John Mylant — Fri, 16 Apr 2010 21:31:00 GMT

Unilever plc (UL)

Unilever PLC provides fast-moving consumer goods in Asia, Africa,Europe, and Latin America. The company offers savory, dressings, and spreads products, including soups, bouillons, sauces, snacks,mayonnaise, salad dressings, margarines, spreads, as well as cooking products comprising liquid margarines and certain frozen foods under the Knorr, Hellmann's, Becel/Flora, Rama/Blue Band, Calve, Wish-Bone, Amora, Ragu, and Bertolli brands. It also provides ice creams under the Cornetto, Magnum, Carte d'Or and Solero, Wall's, Kibon, Algida, Ola, Ben& Jerry's, Breyers, Klondike, and Popsicle brands; tea-based beverages under the Lipton, Brooke Bond, and PG Tips brands.

We have a perfect opportunity here to watch this small double bottom for a investment if it moves back above the upper resistance level that it has bounced off. We have the opportunity to move up at least another 105 for a nice quick 30 day profit if we can break that barrier. Put this on your watch jt list and watch it daily for the break through.

WisdomTree Dreyfus Euro (EU) A Falling Wedge Formation to Watch

John Mylant — Sat, 10 Apr 2010 12:23:00 GMT

WisdomTree Dreyfus Euro

The investment seeks to earn current income reflective of money market rates within the European Union available to foreign investors and maintain liquidity and preserve capital measured in Euros.The fund invests primarily in very short-term, investment grade moneymarket securities denominated in Euros with a weighted average maturity of 60 days or less and does not purchase any security with a remaining maturity of more than 397 calendar days. It is non diversified.

The falling wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge. In contrast to symmetrical triangles, which have no definitive slope and no bias, falling wedges definitely slope down and have a bullish bias.

We have a nice 5 month falling wedge pattern here and we are expecting this to break out of its formation and form a reversal fairly soon. Look for it to break above the upper resistance line on increasing volume. This will be the sing to invest we are looking for.

Quanta Services Inc. For Your Watch List

John Mylant — Sat, 03 Apr 2010 12:11:00 GMT

Quanta Services Inc. (PWR)
Here is a great stock to put in your watch-list. As this falling wedge develops. When it has matured we will see a turn-around in the price of the stock and it will go up. This is one to watch on a weekly basis. At the right time you could make a nice investment. And this stock is option-able to!

Quanta Services, Inc. provides specialty contracting services primarily in North America. Its Electric Power Infrastructure Services segment offers network solutions to customers in the electric power industry. This segments services principally include the design, installation, upgrade, repair, and maintenance of electric power transmission and distribution networks, substation facilities, and wind turbine facilities and solar arrays; and emergency restoration services, such as repairing infrastructure damaged by inclement weather, energized installation, and maintenance and upgrade of electric power infrastructure.

Falling Wedge, also known as declining wedge, is the wedge formation which has a strong bullish bias. They can be trend continuation pattern, if preceded by an uptrend or can be trend reversal pattern, if preceded by a downtrend. Falling wedge formation occurs when prices increasingly tend to consolidate to a lower price levels. The formation helps long-term traders as it usually takes months to develop. In this pattern, both upper (resistance) and lower (support) have downward slops; upper line is steeper than lower one. Prices tend to make lower highs and lows. Declining wedge formation occurs when bears continuously fail to break the lower support level. Volume of trade tends to decrease as the pattern forms. At one time breakout occurs; mostly upwards. Breaks up is noticeable with a significant increase in volume.

Savient Pharmaceuticals (SVNT) Bear Call Spread

John Mylant — Sat, 27 Mar 2010 16:34:00 GMT

Savient Pharmaceuticals, Inc.

Savient Pharmaceuticals, Inc., a specialty biopharmaceutical company, focuses on developing KRYSTEXXA, a biologic PEGylated uricase in the United States. The KRYSTEXXA is being developed as a treatment for chronic gout in patients refractory to conventional therapy. The company also sells and distributes branded and generic versions of oxandrolone, a drug used to promote weight gain

following involuntary weight loss. It sells its products directly to drug wholesalers. The company, formerly known as Bio-Technology General Corp. and changed its name to Savient Pharmaceuticals, Inc. in June 2003. Savient Pharmaceuticals, Inc. was founded in 1980 and is headquartered in East Brunswick, New Jersey.

We are in a perfect position with this stock to make a Bear Call Spread play on this stock. As it is trading within a certain "trading zone," and just now bouncing off the top of the Bollinger Bands we can see this stock moving down. Since we have about 3 weeks to expiration, the downward momentum should be enough for this stock to cause the options to expire and make us a nice profit on the spread between the two.

Asset Acceptance Capital Corp.

John Mylant — Sat, 20 Mar 2010 08:13:00 GMT

Asset Acceptance Capital Corp. (AACC)

Asset Acceptance Capital Corp., together with its subsidiaries, engages in the purchase and collection of defaulted and charged-off accounts receivable portfolios from consumer credit originators in the United States. The consumer credit originators primarily include credit card issuers, consumer finance companies, health-care providers, retail merchants, telecommunications, and utility providers, as

well as resellers and other holders of consumer debt. The company periodically sells receivables from these portfolios to unaffiliated companies. It also finances the sales of consumer product retailers. The company was founded in 1962 and is headquartered in Warren, Michigan.

Watching AACC, being in the financial sector this is a good stock to watch long term. We have a very nice established trend line moving down and the resistance level is easily identifiable.

The financial sector is semi-distressed right now and we are expecting to see this stock break through the bearish resistance level eventually. It has a well established base now. Put this stock on your watch list and look for a break through resistance on increased volume.

Solutia Inc (SOA) Breaking Out of Ascending Triangle

John Mylant — Sat, 13 Mar 2010 14:35:00 GMT

Solutia Inc.
575 Maryville Centre Drive
PO Box 66760
St Louis, MO 63166-6760

Solutia Inc. engages in the manufacture and marketing of various chemical and engineered materials used in the consumer and industrial applications. It operates in three segments: Saflex, CPFilms, and Technical Specialties. The Saflex segment produces polyvinyl butyral (PV sheet, a plastic interlayer used in the manufacture of laminated glass for automotive, architectural, and energy applications under SAFLEX brand; specialty intermediate PVB resin products under BUTVAR brand; and optical grade PVB resin and plasticizers. The CPFilms segment offers solar control, decorative, safety, and security window films for aftermarket automotive and architectural applications under the LLUMAR, VISTA, GILA, and FORMULA ONE PERFORMANCE AUTOMOTIVE FILMS brand names; and precision coated films for electronics and energy industries.

This ascending triangle is a bullish pattern, the length and duration of the current trend is not as important as the robustness of the formation, which is paramount and this one has a nice solid structure.

A basic tenet of technical analysis is that resistance turns into support and vice-versa. When the horizontal resistance line of the ascending triangle is broken, it turns into support. Sometimes there will be a return to this support level before the move begins in earnest.

Since we already have our breakout, watch for SOA to possibly bounce back to support at "14." After it moves off this, it should be safe to invest. We expect this move to quite possibly go clear up to the "19" range.

Price Smart PSMT A Stock Worth Looking At

John Mylant — Sat, 06 Mar 2010 13:56:00 GMT

Pricesmart PSMT

PriceSmart, Inc. owns and operates warehouse clubs in Central America and the Caribbean. Its warehouse clubs sell consumer goods and perishable foods at low prices to individuals and businesses, as well as offers ancillary services, which include food courts, tire centers,and photo centers. As of November 6, 2009, it operated 26 warehouse clubs in 11 countries and one U.S. territory, including 5 in Costa Rica; 4 in Panama; 3 each in Guatemala and Trinidad; 2 each in Dominican Republic, El Salvador, and Honduras; and 1 each in

Aruba,Barbados, Jamaica, Nicaragua, and the United States Virgin Islands. The company was founded in 1994 and is headquartered in San Diego,California.

As you can see, PSMT has broken through the upward wedge it has longed formed and is now poised to continue to move upward. This would be a good stock to move into presently with some research still needed to know when to exit as it moves.

BZQ, UltraShort MSCI Brazil ProShares With Looking at this Investment

John Mylant — Fri, 26 Feb 2010 15:36:00 GMT

UltraShort MSCI Brazil ProShares

The investment seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the MSCI Brazil index. The fund invests at least 80% of its net assets, including any borrowings for investment purposes, to investments that, in combination, have economic characteristics that are inverse to those of the Index.The fund is

nondiversified. Since this is the inverse (or bulliish when the real market is bearish) it is worth watching here. We have had a double bottom already form here, now we are waiting for the stock to break above the resistance area before we invest in it.