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At the risk of missing out on opportunities, I do not want to get too bogged down in my analysis that many daily charts need a few days of sideways action after their recent V-shaped moves. Case in point, SAP just announced they are buying out SuccessFactors for $3.4 billion. In addition to Oracle previously buying RightNow Technologies, as well as other deals that have transpired this year, management/service software and all things cloud-related seem to be hot. This is particularly impressive given the persistent negative headlines, which kept plenty of mergers and acquisitions at bay back during the 2008 credit crisis.

Not so this time around, and accordingly I am looking for other cloud-based firms which are properly set up. Buying a stock solely because you expect the firm to be bought out is usually a sucker’s bet. Instead of doing research based on that thesis, I prefer to go with the idea that where there is smoke, there is usually fire. The cloud is smoking, and I want to find that fire, but only if the technical setups are there. In other words, the question you should ask yourself is whether you would still be interested in the trade if not for the potential of a buyout.

Three examples of cloud-related firms sporting solid technicals on a weekly timeframe are seen below with analysis.

Members of The PPT and 12631 can click here to see all cloud-related names ranked by PPT Technical Score for other potential ideas.

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The huge opening gaps across the board appear to be holding up quite well after the first ninety minutes of trading this morning, offering up hope to bulls badly underwater on positions from the past two weeks. Virtually all of my channel checks for risk appetite are confirming this move, namely the Euro, Freeport, and the strong action in energy stocks. If you were all-in long, positioned for this move while enduring last week’s pain, then you are feeling much better today, in lieu of feeling like a sucker last week getting hustled out of a Thanksgiving rally. Emotions aside, though, the pertinent issue for me is whether to allocate fresh capital here to the long side. The answer is it largely comes down to your style.

When I see a daily chart like the XLY, ETF for the courser discretionary sector, gapping up directly into moving average resistance, I am inclined to show some more patience here and not feel compelled to chase too much. That said, I will be running all of my screens inside The PPT as this session develops, keeping an eye ouit for potential trading ideas.

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It is no mystery by now that we are back inside that summer trading range on the S&P 500. Even though the shorts are having their way, the nature of being inside a well-established price range is that there remains considerable risk to either direction. By many indicators we are currently oversold. Beyond that, sentiment seems to have turned soundly cautious, if not outright very bearish. All of that means nothing, though, when the bears are able to ride the momentum of a downdraft. As we saw last summer, Mr. Market seems to have a knack for laughing at indicators and sentiment at the most inopportune of times.

My main focus, as it has been for much of 2011, is in largely playing defense and engaging in a hit-and-run trading style, be it to the long or short side. Given the lack of a clear, sustained trend throughout this year, I want to be prepared for anything, and The PPT algorithm is as great a tool for that as any. I am going to hold off on any potential short swing trading ideas at the very least until some of this oversold condition is alleviated via a bounce. Despite how harsh the selling was on Monday morning, the bullish seasonality should not be dismissed just yet.

Hence, here are five long trading ideas. Note that if the bears remain in control of the market then I will take a pass, as at least eight out of ten stocks move with the broad market, and breakout plays tend to fail in bearish overall markets. That said, if the bulls can finally stabilize things and push us back above 1220 on the S&P I am going to look at these standouts.

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We inside 12631 wish to express gratitude to all of our members who have helped to make us the best trading service on the internet. We have seen extraordinary demand for 12631 since its inception, and we want to maintain the quality of individual attention that RaginCajun and I offer to each member. Starting on January 1st, 2012, we will be raising prices up to what is charged in The PPT–$49.95 for the monthly, $239.95 for the semi-annual, and $359.95 for the annual subscriber.

From now until New Year’s you will able to lock in the current, ultra-low 12631 Trading Service annual rate of $25 per month for the next year. Out of respect to our loyal members, if you are a current 12631 subscriber then you will be grandfathered in at your current rate, be it the monthly, semi-annual, or annual subscription.

This is a tremendous opportunity to lock in a great value for the next full year. Taking advantage of this offer means that our price increase will be a non-issue for you until 2013. The time to join 12631 is now for $25 per month.

Please Click on this 12631 Hyperlink to Learn More and Join Us Now.

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Coinciding with iBankCoin’s four-year anniversary this weekend is the one-year anniversary of our 12631 Trading Service inside The PPT. The service is run by myself and the RaginCajun, where we direct a cutting edge, real-time chat room on top of many other features. We only offer 12631 memberships to PPT subscribers due to the interconnectedness of the services, in the sense that 12631 seeks to extrapolate on The PPT algorithm. Since literally the first moment that we launched 12631 in 2010, the response has been overwhelming. Over the past year, we have cultivated and developed a community of well over 200 active members at all times.

During that process, our service has taken on a life of its own inside the iBankCoin family of businesses. There is little doubt in our minds that we are home to the most dynamic and value-added chat room and trading service on the internet. Despite our numerous subscribers, however, we are a very closely-knit group, genuinely seeking to help and pulling for each other on a daily basis.

Along with the great help of Jeremy in the IT department (shout out to “gappingandyapping” too), we have also consistently upgraded the service, including email alerts for all trades, and a recent renovation to our unique “Pelican Room” chat with plenty of useful features on the sidebar.

As we head into our second year, our goal is simply to continue to sharpen our trading skills, refine our use of The PPT algorithm, and nurture our great sense of community. We would like to sincerely thank our loyal members for helping to turn our service into a special place, with traders improving daily, as well as gaining confidence and having fun along the way. And, of course, none of this would be possible if The Fly had not showed the business acumen and confidence to give us the green light to launch the service last year.

We have had a wildly successful year in 12631, but we are not the types to rest on our laurels. In fact, we are just getting started. For as little as $25 per month, you can join us on the journey.

Click on the 12631 hyperlink to learn more about joining our winning team.

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