Ideas With Your Morning Coffee

Good Morning! I hope you are all well rested and ready to tackle the day.

I would like to share a couple of ideas that I have been mulling over with my morning coffee.

The first one is $ROK. From Reuters, “Rockwell Automation, Inc. (Rockwell Automation), incorporated in 1996, is a global provider of industrial automation power, control and information solutions. The Company has two segments: Architecture & Software, and Control Products & Solutions. Products for both segments are marketed primarily under the Allen-Bradley, A-B, Rockwell Software, ICS Triplex and FactoryTalk brand names. Major markets served by both segments include food and beverage, transportation, oil and gas, metals, mining, home and personal care, pulp and paper and life sciences.”

$ROK has been tracking well with $PH, another ticker that is currently in my port. Note the classic bullish flag that is breaking to the upside in the chart below and the strong buying volume. There is a strong base around $72.75, so downside risk is only about 3%.
Also, $IMGN, ImmunoGen Inc., develops antibody based therapeutics to fight cancer. How cool is that? While I normally have a “just say no” to bio-tech and drug companies, I am pretty excited about the work these guys are doing. If the price action dictates and I decide to get in, I will be very careful and I advise the same to anyone who considers playing this name. Any drug company is still volatile just because Wall Street is fearful of them, so a very close watch would be in order. I have posted the chart showing a breakout above the bullish ascending triangle and strong buying volume, with a base around $9.40. Note that this name is also on RaginCajun’s Atomic Bombs screen.

I will reiterate that this market feels thin in the short term so be careful out there. I am still a bull for 2011 but I am prepared for a pull back in the near term.