FCX - [[FCX]] A long time favorite that has great fundamentals and price action. On 9/19 it gapped up on big volume of 20MM shares. Yesterday it filled the gap which most up gaps do, then today it close higher and slightly higher volume. I would have liked to see more volume today but entered near the close of the day at $106.98. I have my stop placed under $102.20. This stock has made a big run up in the past few weeks. Keep your eye on gold and copper prices.

CPST - [[CPST]] Is trading very well, closed at 1.25 today!! I bought it at $1.15 and currently up 8.70%. Stops have been raised and still confident about targets.

CPST - Capstone Turbine, after looking at the really low volume on Monday I decided to enter at $1.14 yesterday. My stop is under $1.12 and my first target is $1.28. Volume this morning will easily top yesterday and may go over 2MM shares

CMGI - Well this is why you place stops. After the bell CMGI announced earnings that were disappointing with expense evrey increasing. I got stopped out at 1.40 for a 0.10 loss. I will watch this test the low of 8/10 at 1.28 before I will be interested again.

TGB - Taseko Mines, this traded very nicely and went over my target of 5.10 to hit 5.49. I got stopped out this morning at 5.20 for a 11% profit. TGB may fill the gap down to 5.05 before heading up again. Keeping on watch list as this tests.

ICE - InterContinental Exchange, what a great trade and nice gift to be included in the S&P 500 index which gave it the extra 6% boost. Current I’m up 10% in less than a week. ICE may pullback to $150.00 then try a run up towards $165.00. Again keep stops in place.

DO - Entered into Diamond Offshore yesterday at $111.52 and is currently at 114.83 for 2.95% unrealized profit.

This showed huge strength on Friday with 13MM shares. I am keeping this on my watchlist as a potential entry soon. I want to see it cross over the 9 EMA, MACD and Stoch turn positive before entering. Also look at the weekly chart and you can see there is big support at the $10 range. It has tested this prices more than 3 times and always bounces up.

Daily Chart of USU stock

Weekly Chart of USU stock

I entered into TGB on 9/19 at $4.68 and planned for it to run to 1st target of $5.10. Well it did it in 2 days but because of the big run up with spot gold prices TGB may now run up to $5.59 but will hit resistance and there is not enough daily volume. Keeping my stops tight to lock in current profits of 7.91%.

I could not resist, this is very funny cartoon from The Joy of Tech for those geeks out these.

CPST - Capstone Turbine, I got stopped out of CPST at 1.17 for a 6.36% profit (bought at 1.10). I like this stock and I’m looking to re-enter at $1.12 where it might touch the lower trend line.

CMGI - Still in the trade (bought at $1.50) with an unrealized 7.33% profit currently, still targeting $1.66 as first target volume is increasing.

TGB - Taseko Mines, I forgot to mention this but I enter the other day at $4.68 as my gold play riding the trend. Currently up 6.84% . First target is $5.10.

ICE - InterContinental Exchange, still in trade and down a little but so is volume so no worries here.

DO - Entered into Diamond Offshore yesterday at $111.52 and is currently at 114.83 for 2.95% unrealized profit.

InterContinental Exchange (ICE) looked very promising 2 days ago when there was a big price spread on higher volume then previous days. Also when stocks continue to drop in price for more than 5 consecutive days there is a high improbability that you will see a reversal. Additionally it reach the previous low close on 8/16 and tested with lighter volume which means that there are no more sellers (….for now).

My positive trade signs were:

• Tested the previous low on 8/16 on 9/18 with a lower low but higher volume a wider price spread
• Went below the 200 EMA and closed above it withing 3 trading days
• Is above the 9 EMA and 21 EMA
• Volume was good this morning.
• Slow Stohastic turned up and is over 36
• MACD histogrm went positive

I entered into a position on ICE this morning. We may see resistance as we are approaching my upper down trend line but I believe that we have enough volume and buyers to break through this.

• My first target is $149.99 and must have higher volume than 1.6MM shares. See pink line.
• My second target is $164.44 and must have higher volume than 2.7MM shares. See pink line.

Brett Steenbarger over at Trader Feed wrote an interesting post about What Happens After A Strong Stock Market Rise?. His blog post stated that:

“80% of the time, the market has been higher over a three-week horizon. As a rule, a market that lifts off with great strength tends to follow through in the same direction before undergoing a meaningful retracement.”

What this means is “your trend is your friend” go long, use stops wisely and you’ll trade profitably.

What a reaction by the stock market after the bold cut by the Feds. The Yahoo Finance poll showed that 60% of the readers voted in favor of a rate cut. The major were expecting a cut of 0.25% but the Fed cut rates by 0.50% the first cut in four years. It gave a boost to the market but does it mean that a recession is coming? The Fed stated that “tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth.” Experts are predicting further rate cut…..no kidding.

With rate rate cuts means weaker US Dollar which means higher commodity prices like gold and oil. Today Texas oilman and investor T. Boone Pickens told Reuters in New York today that “You’ll hit $100 — I don’t think you’ll hit $100 this year unless you have some kind of geopolitical event that causes that to happen, but you’re going to get to $100 at some point,”.