Daily PACS Jan. 5, 2012

Author’s additional notes:

The market opened stronger yesterday and went up by 65.55 or +1.44 percent. All sectors now are almost trending up except for mining which needs to close higher than 24,739 or have to gain 259 points in order to join the other sectors. If it does then we can probably assume that the index is in a mini bull run as long as all sectors’ continue to trend higher.

Of course, let us not forget that the problem in EUROPE is still there and that the world market is just trying to ignore them for now. How long this will last? I don’t know. In fact, today the Euro currency is seen trading lower than 1.30 level. Note that every time EURO currency trades lower than 1.30, it means that there are EURO problems that investors are worrying about. It can probably be the news about “Greece warns on Euro Exit” reported by BBC or because of Spain’s Expansion newspaper “reported that Spain is seeking IMF and EFSF loans to help them recap their banks. Spanish bonds are trading lower on the story even though it was denied by the Spanish government,” as written in marketwatch.com. Whatever it is, I wouldn’t worry about it at the moment. I’ll start worrying when our local market’s upward trend starts to falter.

Over on stock issues we cover on PACS, the following stocks just started to trend up. They are RLC, EDC, SMC and FLI. BEL’s trend turned south which worries me a lot given that the general market is strong and yet, it is trading and trending lower.

Overall, I advise everyone to remain cautiously optimistic for the trading days to come and watch correction for an opportunity to buy for as long as the general trend of the market continues to be up.

 

*Please note that PACS’ price  alert level will always supersede any opinion coming from the author.*

TRADE IDEAS – Jan 5, 2012

Our gains for the week just kept on adding up but since Friday is just around the corner, I believe we have to wrap up some trades that made money. Today we will continue to be cautiously optimistic. We will take every spike in prices as an opportunity to unload positions. If ever we will do some buying, we will be watchful for any weakness that might occur. We will enter a trade with a mind set to cut if needed or will not buy at all.

LMG – Indeed my 1.60 minimum target that I gave was hit yesterday and it even went up higher. Watch your trailing stops to maximize and protect your profits. (I hope you do know how money management in trading works..if not try to google and study it or  otherwise base your action on PACS.)

Jan 3, 2012  (Tuesday) previous comment:

AAI – Another big gainer on our hands. The trick now is for us to maximize our profits. Remember to set your trailing stops.  (otherwise base your action on PACS)

Jan 4, 2012 (Wednesday) previous comment:

AAA – If your still holding the stock watch if stock will hold above 3.52 (if not, sell) and if ever price spikes near and especially above 4.00, be ready to sell. (otherwise base your action on PACS)

Jan 4, 2012 (Wednesday) previous comment:

For today we will be watching the following for trading buy potential:

CPG – if it will break above 2.04 level.

ACE – if 3.13 will be broken with volume and will be able to close higher than 3.30 (an indication of strong momentum).

ORE- Started moving yesterday when NI started to hit 5.0 level. We will watch for follow through today. Momentum is seen to improve if it can close higher than 4.20.

Jan 4, 2012 (Wednesday) previous comment:

EVER – Same analysis as before but watch if it can close above .1770 which will indicate an improvement in momentum.

BSC – Watch if .stock will be able to hold above .2060 and also if OV will remain strong. Sentiment spillover play from OV.

*Please note that PACS’ price  alert level will always supersede any opinion coming from the author.*

LC Chart Jan. 05, 2012

I’ve been hearing and reading a lot of opinion regarding LC/b’s price movement. Since this stock issue has become one of the market’s favorite, I thought of sharing and giving my views as well. So far almost all analysis I’ve had read are right. Everything just depends on the time horizon one is looking at.

Scenario A: Uptrending Triangle Formation

Bull Camp is saying that LC is in Uptrend Channel and that we will soon see a break above 1.81 and that price will initially be targeting levels between 2.18 to 2.26. Time frame of wait will be shorter.

Note that under this theory, LC is still expected to retrace back to “Minor Descending Triangle” previous breakout point level seen at 1.57. Normally healthy retracement doesn’t lead to touching 1.57 but instead price is seen to hover above it before resuming an upward movement.

Scenario B: Ascending Triangle Formation

Bear Camp on the other hand is saying that LC is completing an Ascending Triangle formation and that price is seen to break below 1.58-1.54 (Point A) and move lower, towards the lower boundary of the pattern which is between 1.40-1.40 levels. Once pattern is completed, LC is seen to resume its uptrend move and will initially retest 1.74 resistance level. It probably will then eventually break above the 1.81 upper boundary of the ascending triangle formation in due time but this will really take a longer time to complete.

Personally am neither pro-bear nor pro-bull. I am pro PRICE ACTION. The deciding factor will be the 1.58-1.54 support line. THIS WILL BE THE FINAL ARBITER POINT WHICH WILL DECIDE WHO IS RIGHT OR WRONG. As long as price moves above this level, the 2.18 to 2.26 short term target will remain viable. On the other hand, if 1.58-1.54 level breakdown, then my holding time analysis target will change from shorter to much longer wait period with possible testing of support seen between 1.44-1.40 levels.

ALL BETS ARE OFF IF 1.38 LEVEL BREAKS.

Layman’s Definition:

Retrace/Retracement means pull back.

Resistance means a level or a price point where majority of sellers are seen to converge.

Support means a level or a price point where majority of buyers are seen to converge.

Breakout/Break above means a price move above a resistance.

Breakdown means a price move below support.

Bullish/Bull means to have an optimistic, positive view on price action. (Anticipating further rise)

Bearish/Bear means to have a pessimistic, negative view on price action. (Anticipating further decline)