The market took a pause today after yesterdays sell off, making slight gains. For you IBD fans, yesterday’s distribution day was the 4th in this rally, which was confirmed in late March. This is not out of the ordinary, distribution days happen in a rally. But keep an eye on the frequency that these occur.

There were no triggers from the Watchlist.

Last weekend, I posted a trading lesson about an indicator called the Squeeze, which can be used to predict momentum moves in a stock. One of yesterday’s triggers from the Watchlist was AKS, and today this indicator triggered.

aks_sq_sm1.jpg

If you clock on the chart to enlarge, you can see that the same indicator also triggered on April 2, 2008, and from the close of that day to the peak was over 18%. Will the stock move like this now that it has triggered again? Who knows? Although the stock closed below the entry point yesterday, it did hold up fairly well, and today closed above that point. So it’s still a buy at this level, and one to watch anyway.

aks2.jpg

Trade Ideas for 05/09/08

bzp3.jpg
ma.jpg
rimm.jpg

Good luck and good trading!