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Monday, October 24, 2011

the chart dump - AAPL, CAT, DD, ETN, DIS, F, GS, GOOG, IBM, UNP

Here are a series of individual stocks that, to me, confirm the bottoming process. These charts coincide with the few stocks I highlighted a little over a week ago.

AAPL - This sucker is a healthy chart, and is going to 450.  It will most likely bounce from current levels, and probably not look back. If AAPL does not agree with me, the bounce off level will be mid/high 380s. (If AAPL reaches this level, I will probably not be able to resist and trade it.)

Most of the stocks highlighted below show a solid base formation. The declines I was looking for as initial entries (assuming entries were not made at the height of negativity) do not seem to want to happen.  They now have a positive bias.



DIS - nice breakout from the its basing.


F - Breakout, although it is at a weekly resistance. But the chart is obviously positive regardless, with a complete break from its negative trend.

GOOG - Although its basing, and showed nice strength on Friday, I would still hold off on it until, at least, the lower end of the base range.

GS - I pointed this one out already, but now the SMAs are in its favor.  95 would be an awesome entry with this set up, but I do not know we will see it. This sucker may cruise upward.

IBM - Nice strength on Friday. Looks like the 176 level was the support to watch.

UNP - Saving the best for last, the transport breaks from its 200SMA. Possibly allowing for a long-term trend to eventually be re-established.

I never will understand why traders say "price is truth". A trader's job is to take advantage on market inefficiencies, and this task is in direct contradiction to the "price is truth" mantra. IMO, the above show some really interesting positive bias, which will eventually carry over toward the year end.

Like the overall SP500, many of these stocks are trading at lower-than-usual multiples. The current positive bias or, at the very least continued basing, assumes little multiple expansion.  As US economic and China fears ease, expect multiple expansion to drive these stocks higher too.

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