“Goes on, and the heat goes on.” –David Byrne
$DFS: Everyone takes Visa and MasterCard. Hell, even a few of the trillion food carts here Portland are now accepting Visa/MC (for a $1.00 fee…yeah, right). American Express feels like it’s the card of aristocracy or something as a lot of small businesses won’t accept it (I often find myself asking: “do you take American Express?”), but it is the only CC you can use at Costco, so I have one in the wallet. For some reason Discover feels like the Cricket Wireless of credit cards, even though it isn’t. Apparently investors like the company because this weekly chart looks pretty nice. Excellent bounce off of the 1 year EMA and lower BB. I will consider this one on a drop between 22 and 22.50.
$EBAY: I figured this company would eventually become irrelevant…most likely the result of Amazon squashing their business like a boot heel on a caterpillar. Low and behold, look at them still going strong. Might as well play this one to remain in the channel between 27 and 36. Looking for a retreat to 28-29 to get interested.
$M: The weekly Bollinger Bands are a bit stretched on Macy’s, though they are contracting. I’d prefer to see them cozy up right under the 1 year EMA to form some nice support around 25. Like I said on the daily chart, I’m looking for the stock price to settle in between 24 and 25 before making any decisions. I’m interested to see what happens with the hammer on this chart.
$DELL: Dell was flirting with multiyear highs during the late July rally. Those highs were denied with great prejudice. Again, I want to see prices calmly settle back into the 13.75-14.25 range for a few days before I make any moves. In the event of a broad (and sustainable…well, whatever that means in this day and age) market rally, I think Dell could be off to the races if it can get above 17-17.5.
$POT: Here is another stock that has been range bound for the better part all of 2011. Until proven otherwise, it makes sense to go long around 50 and short at about 60-62. If this rebounds back up to the top of the range, I’ll think about shorting…though I have a feeling prices will be back to 50 before that happens. At that point (prices to 50), and if there is a semblance of ‘normalcy’ to the stocks behavior I’ll look to be a buyer somewhere in there with a stop in the low 49’s.
$NSC: My dad is always telling me: “you should be looking at railroads, people always need to move goods”. Good point. Though I would point to stocks in the “Shipping” sub-industry as a counter to that claim. Unfortunately for him I don’t base trading and investment decisions on fundamental theories (even the seemingly good ones). With that said, I like the pullback in Norfolk Southern here on the weekly. Ideally, I’d like to see prices trade within the ‘body’ of the candle established last week and above the 1 year average and lower BB.
$ACN: I have no idea what this company does but they sure trade a shitload of shares. Ah, it’s an Irish company that “operates as a management consulting, technology services and outsourcing company”. Well, there you have it. This is a really similar looking weekly chart to $M (at least the pullback from recent highs/hammer). Again, I’d like to see lower volatility and prices contained within the candle printed last week (between 52-53). If you click the link to the daily chart, you can see that there was a gap on 3/25 which was filled last week…so I think that’s going to provide support for the time being.
$BMY: I might short this right here as that bounce last week was just too much too soon. The last candle was bumping right up against the 3 month EMA where it was subsequently rejected. I’m thinking that if prices fall, they will retreat back to the high to mid 26’s…at that point I think it would be prudent to see if the stock is supported to think about accumulating a long swing position.
Be sure to follow me on Stocktwits for updates and other assorted fun. Part 3 to follow later tonight.