Portfolio Update

The market had a slightly bullish day after a hard drop yesterday. The result for me, however, was a bit of a mix. This is how my portfolio fared.

CPLP had a slightly bearish day. Although it attempted to be bullish, too much bearish volume flooded in at the end of the day. The volume was above average and the Stochastic and MACD indicators continue to turn from up to sideways in the overbought range. Considering price movement and the current position of the secondary indicators, a repeat of late Septembers sideways movement seems to be likely, although it is possible that it may go back down to $8 or lower.

EVEP had a solid bearish day. The volume was above average and both the Stochastic and MACD indicators are touching their signal lines in the overbought range. The Stochastic indicator is just starting to turn sideways from up and the MACD indicator sharply turned down. It is my opinion that it will probably pull back between $28 and $27, at least, before changing directions again.

SLV had a slightly bullish day. On very below average volume, it's price movement produced what is known as a Harami candlestick. This is when the body of the day's trading occurs within the range of the body of the previous day's trading, and it is also a bullish candlestick pattern. The Stochastic and MACD indicators have both turned and are touching their signal lines while in the oversold range. Although the candlestick pattern and secondary indicators suggest that a bullish reversal is possible, the volume is weak. A person wanting to get in would be wise to consider this a good time to get it, especially if Monday is a bullish day.

As far as paper trading is concerned, I am not in any positions right now, but I am looking for entry points. Of those I am watching, this is what I have to report.

JPM had a bullish day much like SLV. The price movement of the day produced a Harami candlestick on better than average volume and the Stochastic and MACD indicators are in the oversold range. All of this suggest bullish intent. It is my belief that next week it will finally break above the downward trending resistance line I am tracking it with.

PCS also had a bullish day like SLV and JPM. The price movement of the day produced a Harami candlestick on better than average volume, but this time the Stochastic and MACD indicators are in the overbought range. If PCS can open up and close higher, without giving back too much of the intraday gains, it may run in the overbought range for a $1.50 in the stock. That will be acceptable for an option trade of the $7.50Feb10 Call.

PDLI had a bullish day on better than average volume, and it closed above the downward trending resistance line I had been tracking it with. The Stochastic and MACD indicators are pointing up and are not overbought. Except for the fact that the price movement put in a doji candlestick where the close was actually lower than the open, I would think that it was definitely going to go up. I am going to need at least another day of fully bullish trading to be sure about this stock going any higher. Even if it does, I am not expecting any more than $7.75 before it takes a break. That is my opinion, you can take it or leave it.

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