Pimp My Trade

Charts of the Day

Posted on January 22, 2009 by Adam

I’ve got a couple ideas for tomorrow. I don’t know which way the market’s going to go. I don’t care. Just pick the best setups and you’ll come out on top. Good setups are hard to come by, it seems, right now. If you can’t find anything great, maybe just stay on the sidelines. If I had to bet, I’d say the market was going down, but I wouldn’t bet the farm.

The conglomerates group is looking good and weak. If the market wants to turn lower, I like that group to test its lows. Here’s a couple ideas:

Short:

CBE

A nice triple top is forming in CBE. Look for it to test its lows if the market rolls over. Wait for a breakdown and it's an easy short.

MMM

MMM tested old support as new resistance today. Looks like a nice, low risk setup.

Long:

SQNM

I like the trend, and I like healthcare as a relative strength play. If you want to take a stab at it here of trendline support, that wouldn't be a bad trade.