Pre-open 07-21-2006 Update...

It's been a crazy couple of days, but yesterday I closed CNCT with a respectable profit and hope to replicate that trade in the coming weeks. A weak market may also be reflective in that only 18 charts were returned by my candlestick script. Yet, I still have a couple stocks to watch tomorrow. Depending on the market, it may be worth a quick trade.

Watch List: WWY, TRB.

Since there are only two stocks, I think I'll provide some background as to why I selected them. WWY, formed a bullish engulfing after forming a decent base at 43.25-43.50. The CCI uptick near -100 and slow stochastic crossover (black rising above red line) yesterday, support the possible swing trade. I would set a target of 44.75 (middle of long base formed in June) and a stop loss of 43.00. Upside:downside ratio of 2.5:1 nominally fits desired 3:1. Only allowing for 1% decline may be a little too tight, but given the market, it may be wise.

TRB, formed a weak morning star after a sizable decline from July 12. I am not the biggest fan of morning stars, but sometimes they work. Additionally, the fact that candlestick lengths are shortening and there is major support at 29.75 supports the trade. I would make a trade if the stock and sector open higher. A target of 31.05 (weak resistance given a couple gaps and closes in the area) and a stop loss of ~29.00 (no real chart support, chose 3% decline instead) would complete the trade. Upside:downside is 2:1, not the best. I also am not fond of the support and resistance for the stock. Nonetheless, it may be profitable.

That's all for now. I'll see what the market offers and make the necessary trades. Good luck!

For now,
Masterjaz out