Flowers for $ALGN (Interesting Price Breakouts as of October 24, 2012)

The market continues to sell-off. Some talk about breakouts, cross-overs and magic numbers. Knife catchers galore out there, complacent, and competing for time suck share with gloom and doomers. In the middle, you’ll find the trader, who goes off price, volume and risk rules. $WHR and $CL_F were featured the other day, now we have more tickers to look at. Actually, when it comes to ticker suggestions,

Jesse Livermore said it best, “I never hesitate to tell a man that I am bullish or bearish. But I do not tell people to buy or sell any particular stock. In a bear market all stocks go down and in a bull market they go up.”

Right now, the break-downs and hard sell-offs of many favored “leader” stocks has taken place already. $ALGN below is the latest member of the broken up-trend club.

I’ve chosen a few charts, and haven’t present for all tickers in this post. I wanted to show the violent breaks that are taking place, and there might be more to come, as traders and funds rush to exit, either to follow suit, avoid the tax hit that’s anticipated in 2013 as tax cuts expire or close up books without pigs for institutional window-dressing.





We’ve already seen crude drop, and that seems to be continuing.


A longer term view of $NQ_F. We’ll see if this recent break means something.

Everyone watches moving average crossovers, and this one is hugging the 50 day, so the jury is out. I can’t make judgements and predictions.


Breakouts (not breakups 🙂  )

$HOV $KFT $WHR ($KFT is no surprise and neither is $WHR)

Homebuilders have been enjoying a 6+ month ride up, and are getting noticed by the remnants of the retail trade as the market is reporting some improvement in sales, resales and starts. “Cup and Handle” traders, I couldn’t help but notice a possible 4 months cup earlier this year, followed by a nifty handle, and $3.25 as nice trailing “high” to enter $HOV. Other shares in this space had similar rewarding opportunities as well as mortgage related companies. That being said, don’t be stupid and go hog wild, at least without some risk controls.