The cruise will be departing out of FT. Lauderdale on April 12th, 2008. It’s an 8 day cruise to the Panama Canal with 4 sea days of classroom activities. We would love to have everyone join us! Complete details can be found on the Tradingourway website.
  

For questions on the cruise call Joyce Moore 407-382-4092. Seminar questions call Kermit Prather 813-681-5427

This Issue:

I know we should be touting short positions right now. That would be fine for short-term swing traders which this market seems to be forcing most of us to be these days. Finding short candidate is easy in this market. Just pick one of the 4,711 stocks in Telechart that have been in the negative since Christmas.

So I see the challenge being to help longer-term traders look for  potential candidates.

Earnings reports should begin to slow down a little now and we may see a bounce in the market for a few days within the next few weeks. Here are a few stocks that were very strong prior to the year-end and the January drop. These should do very well if we see a continued bounce.
 

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BYI - has been riding the 50 MA for 2 weeks. It closed above the 20 MA on Thursday 1/31/08 with a bullish Engulfing on increased volume and  confirmed on average volume Friday. The Fibonacci projections show a possible target in the $61.40 area using the 61.8% extension.

Of course,this is only if the market cooperates. Using a stop just below the 50 MA of $45.78 gives a Reward to Risk of 6 to 1 with an entry of $48.28.

NOTE: This is not intended to be a short term trade as it may take a few months to reach the target area.  It is a 30% profit if we hit the target.

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CSIQ - has retraced over 61.8% of the August low to the December high and now has rebounded over $4 off the lows. However, we still are below all the major moving averages. Therefore, we need to put this on our watchlist and see if it can break through the 20 MA. The volume has been decreasing the last few days. So it is a good idea to wait  for the stock to show us it can keep moving up. Short term or the impatience traders might enter above today's high on Monday. Be sure you choose a fairly tight stop.

 

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RT - is now coming out of a long downtrend and should close the December gap and possibly the October gap as well. Since the low pivot the up volume has been out pacing the down volume. A sign it may have seen the bottom. It closed above the 20 MA on Thursday 1/31/08 with a bullish Engulfing on increased volume and  confirmed on average volume Friday. Apparently, driven by the news that Ruby Tuesdays will open restaurants in 5 airports starting with Orlando and Detroit. Around $11.50 is the expected target area. You should expect some amount of resistance at the 50MA. 

 

Worden Brothers charting software Telechart, is in my opinion the best on the market. I have used it since 1996 and their platinum since since 2004. They offer a 30 free trial so check out the product and if you have questions you can send me an email. However, the best thing to do is use the online forums  and post your question in the "Ask the trainer"   the trainers will respond in a matter of hours, sometimes minutes. Plus the entire user community will respond with their opinions and suggestions.

Click on the picture below to get all the details on the Telechart program.

Summary:
 
The information in these newsletters are but a small fraction of what will be covered on our "Seminar at Sea". We'll be showing you how to find stocks like the ones above and how to analyze them for your trading.  Plus, so much more.

 Please feel free to send an email to kermitp@tradingourway.com  with your suggestions, complaints or questions. Your feedback is important to us.

Also, Please feel free to forward to your friends by clicking on the "Forward to a Friend" below. 
 
Thank You and good trading,
 
           Kermit Prather