Stock Watch-List for November 10, 2009

Good Morning, and there is some good news, that is I have my stock screening software back up and operational and there are definitely some nice plays lining up for the day.

Overnight, Asian markets were up about a half percent overall, and European markets are seeing minimal gains so far. As for US Futures, the Dow is down 21 points, while the NASDAQ is down 4 points, and the S&P is down 3 points. Not surprising considering the rally we had yesterday.

On the economic front, we got the Goldman Store Sales at 7:45am EST, along with the Redbook (8:55). Tomorrow is Veterans Day, but the market will still be open as will the futures markets.

As for this rally, I am very skeptical of it – my only position right now is a short position that I initiated late yesterday in QQQQ. The volume in the S&P over the last six days of rallying that has also been accompanied by measly volume levels. In fact, except for yesterday, each rally has seen diminishing volume each consecutive day. And yesterday’s was nothing to write home to mom about.

I don’t really care either about the Dow making a new high, since it is a price waited index (which means results gets skewed to high price stocks). The S&P and NASDAQ still haven’t made new highs yet and those are the two indices that I will continue to watch. New highs would be discouraging for bears at this point, which would indicate the potential head and shoulders patter developing would be null.

Here are Today’s Trade Setups…

Bullish Candle Setups: STRA, COCO

Bearish Candle Setups: SMG, SWWC

Stocks Ready to Bounce: STEC (nice doji candle), TRLG, WFMI, JCP, FICO, GLBL, ALSK, LXU (tweezers action going on here), ARO 

Stocks Ready to Pullback: None 🙁

Breakout Stocks: AWK, QGEN, NOC, HPQ, NNI, CLX, AXP, NETC, HNZ, ADBE, UIS, WMGI, CL, EMN, NHP, ITUB, NMM, EGO, HDB,

Breakdown Stocks: MYGN, CFSG, DM, HOGS, TA