Despite the fact that you should be printing money again today for following my setups from last night ($WPRT is acting like it had 20 K Cups this morning), I would like to repeat the fact that you need to adjust to the market at this point. Now is not the time to be making aggressive bets on stocks that have already gone parabolic. You also need to emphasize stop losses. Again, if you followed my charts last night, you’d be up in $AMR, $JBLU, $GS, $HOG, $AOL and even $MEE if you chose to take the plunge. Of course, $WPRT is the big winner today. Also, I have been telling you to monitor the high bull flags I charted last week–namely $DPZ, which is going higher.
And yet, despite the success of my picks, I am not sitting here beating my chest and acting like a cocky degenerate. Instead, I am strongly advising you guys to tighten up right now on your longs. Cut your laggards. Raise your stop losses. Raise cash. SLOW DOWN. It bothers me that we have not touched the 20 day m.a. on the $SPX for many weeks now. I can live with staying well above the 50 day for quite some time, but the lack of relation to the 20 day gives me pause. Beyond that, I still want that retest of the 1150 area, before we see 1220. If we fail to close above 1187, we will have made a series of lower highs over the course of the past few days.
Bottom Line: Discretion is the better part of valour (sic).
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that photo is perfection
haha thought you’d like it
I need to post one in every room of my house, in my car, and over my head! My brain says “MORE CAFFEINE/MORE PROJECTS/MORE ACCOMPLISHMENTS/MORE/MORE/MORE” and the reality of my life says “umm…drink this camomille and take a chill pill girl” It is one tough transition let me tell you.
In other far more important news, GREAT JOB on your picks today.
as always, thanks lindsay
hey pro,
i am also watching the $mee. i posted a chart today that shows $mee bouncing off a trend line that goes back to july of last year, and on what i think may be a blow off volume type thing!
thanks for all your posts
duane
ps…
took home $TLT & $ALL, again… lol
Nicely done again, duane. I posted $MEE last night because my analysis showed that the stock was technically not broken despite all of the massive selling on volume. At the very least, I think it is good for a 1-3 day long swing.
$ALL still looking good.
WPRT – If you do not understand WPRT then you have no idea of why this stock is still at a very low cost. Insiders are buying at $17 for a reason. WPRT sells natural gas engines through various entitiues including Cummins Westport, Weichei, Juniper, Peterbuilt, Volvo, and Kenworth. This is an emerging market and it is more than real. The use of natural gas as a trucking transportation fuel not only makes sense it is happening more and more. First it has economic advantages over Diesel while maintaining equivilant or better performance, it is better fo the environment and it is a domestic fuel. To top it off the US government has already approved $300 million in subsidies for natural gas fueling and trucking projects through the DOE. In addition, when HR1835 and S1408 pass the house and senate the road is paved for Westport to clean up. To top it off there is no close competitior. A 300 billion dollar a year world wide market and only one clear leader; WPRT. WPRT only has about 37 million shares outstanding, fully diluted. If they capture 5 % of the world market, which is realistic in the next few years the company will be pulling in 15 billion in sales. Do the math and you will see how much this stock will be worth. Yes this is how the rich get richer. FYI Boone Picken owns about 10% of the company.
Drew–I think you’re misunderstanding what I was saying. I recommended buying $WPRT last night as one of my top chart setups. The comment I made today was simply cheering it on as I was in awe of how strong the stock was acting today (20 K Cups). Your fundamental analysis is excellent and, yes, I think the stock goes MUCH higher from here. I appreciate you reading and your thoughts.