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Jea Yu has been involved with the equities markets for over 10-years. He specializes with intraday trading in the U.S. equities and futures markets. To receive a free 7 day trial to Jea Yu's Underground Trading Pit, click here or call 888.484.8220 ext. 1.
As the year comes to a close, there are two stocks that are
showing some some very nice accumulation going into the new year. These stocks
are worth keeping on the radar as longer term swing trades. I will go over the
technical reasons for taking long positions.
CHINA has been in a consolidation for over a year in the $3-4 range until it’s
recent earnings report caused a massive surge in volume to trigger a solid
breakout on the weekly and monthly charts. The weekly and monthly stochastics
are both setting up mini pup formations which tend to foreshadow a price
breakout. The weekly support sits at 8.70. Upside sits at the 10.50 x 12.50
levels. A trail at 8.50 for 10.50 (initial pares) x 12.50 makes for a decent
risk reward.
SOFO "Sonic Foundry, Inc. engages in the development and provision of automated
media application software and systems. It primarily offers Mediasite, a web
communication and content management system, which automatically webcasts
lectures and presentations. The Mediasite solution family includes Mediasite
recorders that streamline the capture and creation of multimedia presentations
for people who need to share their information or message with others; Mediasite
server software, which provides a unified web communications platform to webcast
presentations over the internet for live or on-demand access, and archive
presentations in online catalogs." SOFO is in a hot sector and has been showing
steady accumulation. We are long on this one from 4.05 with a trail stop 3.50
with 5-5.50 initial target levels. The monthly is showing a steady consolidation
breakout.
These two stocks should be sleepers going into the new year. Also, December is a
very slow month for stock trading in case you forgot last year. Take it easy and
tread water into January. Good Trading!
Feel free to send any questions or comments to
jay@undergroundtrader.com
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