Momentum Trader Report: 05/11/08

We are currently at a decision point in the market. The market will need to make a decision as to which direction it’s going to take. Many eyes will be watching the S&P 500.

It’s now sitting right at the trendline. It traded below it on Friday, but closed above it. This is a positive sign, but if this trendline is broken, we could be revisiting some previous lows. The chart for the Dow looks similar. The Nasdaq looks better, as it sits right above the 200-day MA. It wouldn’t be a bad idea to sit out and wait for a decision to be made. We could see a strong move either way.

There were two triggers from the Watchlist on Friday. One of them was BZP, which made a very strong move past the entry point.

This is the 3rd time this stock triggered from the Watchlist, and each time, it made impressive moves:

1st Trigger Date: 3/11/08
Max Daily Move from Entry Point: +7.86%

2nd Trigger Date: 5/2/08
Max Daily Move from Entry Point: +9.65%

3rd Trigger Date: 5/9/08
Max Daily Move from Entry Point: +7.14%

The other stock that triggered on Friday was RIMM. As mentioned, this stock has been a bit slippery meaning it can pullback, which it did on Friday, and closed below the entry point, but not before making a max move of $1.64 from the entry point.

Here are the stocks blackboxed in tomorrow’s edition of IBD:

CNQR, AAPL, CHL, KEX

As mentioned above, it wouldn’t be a bad idea to sit out of the market here and wait for it to make a decision. But I always like to have trade ideas ready, just in case. So here are some stocks I will be watching tomorrow, but these will depend on market action.

Trade Ideas for 05/12/08:

Good luck and good trading!