17 Stocks The Street Is Buying

Written by Ryan Mallory | 25 August 2010

By far one of my best screens in determining who is buying what on the street. What you will find are those stocks that, among other variables that I use, 1) Gaining an increased amount of coverage by brokerage firms and analysts, and 2) Being upgraded on a regular basis. This is a good screen to show you where the smart money is putting their capital to work at, without you having to actually ask them.

Of the 17 stocks, the one that looks very intriguing to me is China Digital TV (STV) that has seen a nice rally from $6 to $7, and has pulled back nicely since then, offering a nice entry, before another potential move up. Keep an eye also for pullbacks in GGAL and PERY.

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Two Head And Shoulders Patterns In Play

Written by Ryan Mallory | 25 August 2010

Head and Shoulders patterns abound. The neckline (support) on one has been broken, and the other is still in play.

Here is the short-term head and shoulders pattern that was broken on Monday...

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The Daily Long and Short Setup

Written by Ryan Mallory | 25 August 2010

After the Durable Goods report came out that was absolutely horrible (0.3% actual vs. 2.5 expected!), futures have seen another move down, with the S&P almost taking out the critical 1040 level. So the Head and Shoulders pattern support level is definitely in play for today. If the New Home Sales report comes out below expectations, then things could definitely get crazy today. Stay Tuned.

As for today's setups, you know I am not really crazy right now about any stock that requires you to buy it first (i.e. go long). But I do try to find setups each day for you. In fact, finding descent sell-offs on either side of the trade, with the amount of selling that we have already seen in this market. Thus, the reason, why I won't be adding anything new to the portfolio today.

LONG:Nova Measuring Instruments (NVMI)

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Trading Plan for August 25, 2010

Written by Ryan Mallory | 25 August 2010

Current Short Positions (stop-losses in parentheses): SPY (108.68), DGX (47.10), FCN (35.01), URBN (33.94), OMI (27.76), HSY (48.02), ADBE (29.78)

BIAS: 63% Short

Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Durable Goods Orders (8:30am), New Home Sales (10am), FHFA House Price Index (10am), EIA Petroleum Status Report (10:30am)

My Observations and What to Expect:

• Futures are slightly down. 
• New Home Sales will have a significant impact on the market today. Especially after yesterdays Existing Home Sales report was so dismal.
• Durable Goods should also be closely watched.
• S&P broke and closed below critical 1056 support level on the S&P.
• Any near-term bounce in the S&P will likely struggle to go higher than 1100, and 1070 realistically.
• Support levels for bears to break on S&P is 1040 (Neckline of Head and Shoulders pattern), and 1010 (July lows).

Actions I Will Be Taking:

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Very Solid Move Down Today

Written by Ryan Mallory | 24 August 2010

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