This stock could get crushed, here's my plan of action

The DJIA

Smack down city! Man, what a day yesterday. My finger was on the trigger to go long as the Dow flirted with the upper channel line, actually breaking it slightly, but not by the systems parameters, therefore I stayed flat. Price proceeded downward through the channel breaking the lower line of 10497 triggering a short entry. I am holding shorts today with nice profits and wide stops. 10377 is apparent support for this down move. Short/profitable

OIL

Shorts were entered yesterday at 65.97. They are currently underwater and I am holding at this time. Short/loss

US DOLLAR

Greenspan's speech added fuel to the dollar rally, pushing the EUR/USD pair into the 1.2100 range. I have covered my initial shorts with nice profits on the bounce back and just re-entered short 1.2213. Short/profitable

Equities

(NWAC | Quote | Chart | News | PowerRating) Removing from list. No bounce.

(DAL | Quote | Chart | News | PowerRating) Still watching and waiting for long entry signal at 1.03 to enter Flat/long bias

(GOOG | Quote | Chart | News | PowerRating) Wow, this one is insane! Moving the go short level up to 302.97. Flat/short bias

(EBAY | Quote | Chart | News | PowerRating) The slow grind down continues. Holding. Short/profitable

(IBIS | Quote | Chart | News | PowerRating) This chip maker seems to be setting up for a nice run on the upside. Still waiting for 2.03 to snap to enter longs. Flat/long bias

(ALL | Quote | Chart | News | PowerRating) This is a new one on list. Allstate insurance is being sued for refusing to pay flood claims from Katrina. I don't believe they have an obligation, based on the contracts. However, the payout for the other damages and the very bad PR that will come from the suits, regardless of the outcome, may crush this insurer. Here's my plan: 51.50 breaks, I am shorting. Flat/short bias

Best wishes !
Dave G

David S. Goodboy (marketsurfer) has been trading professionally for over 14 years. Mr. Goodboy trades ETF's, stocks, index futures, energy futures and options. His primary focus is a unique multi-time frame index trading system based on a combination of time/price cyclical studies and statistical models. David was a trader/partner with Biltmore Capital, traded with an option arbitrage firm, and is currently in the launch stages of IntrendX, a global multi-strategy fund.