Stocks at important pivot point - AIG & Alcoa

American International Group (AIG) and Alcoa (AA) are two stocks i spotted which are at their crucial pivot point. At their pivot point, one can see the congested area of moving averages. AIG had formed what appears to be a double bottom formation. It looks more like a buy than a short sale potential in our case. The bias is also to the upside for Alcoa as the aluminum producer is trapped in a symmetrical triangle spanning a few months.

AIG

Alcoa

My bias is to the upside for the stock market currently.

Stocks looks ripe for further upside

Dear readers, no matter how bad the headlines may seemed at this moment, the charts are hinting at further upside for stocks as beaten down financial stocks are now bouncing off long term support with signs that longer term players are stepping in to purchase the stocks at these levels. These behaviors exhibited by the financials are very positive indication that the financial stocks have bottomed. Let's check out the weekly charts for stocks in this post (click on charts to enlarge).

Bank of America (weekly)

Citigroup (weekly)

Casino stocks are also breaking their immediate resistance level and are now free to move higher. The weekly  charts indicates that Las Vegas Sands (LVS) has broken out of the Ichimoku Clouds and is starting a new trend.

Solar stocks did not took part in any upside moves at all ever since the European debt crisis was reported in 2010. This sector is severely beaten down. We could see solar counters moving higher soon as oil prices looks to resume their uptrend and the fact that many of these solar stocks have bounced off long term support. It would be good risk to reward to initiate your long positions at these beaten down bargain prices.

Yingli Green Energy (weekly)

Renesola (weekly)

Do keep an eye on the financial stocks as i believe that we could see them finally waking up and leading the charge for the overall market in moving higher! Have a great week ahead.

Caribou Coffee Company (CBOU)

CBOU looks to be a buy as the stock broke out of its trading range in mid June on high volume. It made a pullback to the $13 region. This could be the next monster stock for all we know. If you are an avid fan of William J O'Neil's CANSLIM method, you will find this particular setup to your liking! Stuck in a range for most of the year, and then suddenly bang, the stock made a move up on high volume. Swing traders would also have taken note of this setup by now by buying this pullback.

Good opportunity to load up! Buy buy buy!

Dear readers, the news on the Greece default and that the world markets reacting on a sell-off had dominated headlines around the world this week. Despite how gloomy the news are currently, let's just focus on the price action. Interestingly, the charts are telling us to buy the dips. We should see higher stock prices to come in the weeks ahead. Solar and the financial stocks looks beaten down and could possibly have formed a bottom. Good time to load up. Gaming stocks are also on a roll.

S&P500

Las Vegas Sands

GT Solar

Yingli Green Energy

US Steel

American International Group (AIG)

Market Initiating New Uptrend - Buy on Dips!

Dear Readers, the recent market slump looks to be over as many cyclical stocks are breaking out of their downtrend and initiating new breakout. It is now a buy the dips market with the market breaking resistance. We could see further upside in the stock market. Perhaps the bull market has yet to end after all. The majestic rise from 2 weeks ago had forced the bears to run for cover. For all we know, the recent slump last month could just be an intermediate correction of a bull run. The market is indeed very dynamic whereby opinions doesn't matter. I was bearish and now i am bullish. Concentrate only on price action. Stay flexibility in your bias.

AIG - Looks to be coming up from a properly formed base. A stock in accumulation.

BAC - Possibly the weakest of the bank stocks, it looks like its trying to break its $11 resistance.

Citigroup - Looks to be in some sort of bullish continuation pattern at its resistance area instead of failing at the resistance. Citigroup is now a buy on dips to the support area.

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US Steel - Another cyclical stocks with a change in trend detected in late June. Stock has now broken through its resistance and is now a buy on dips to the support area.

Aloca - Broke out of its sloping downtrend line this week. Currently forming a bullish continuation candlestick pattern.We could see higher prices soon.

Market updates - Week of 4th July 2011

All short bets are off now as the markets' powerful upthrust off the 200 day MA had short sellers scrambling to cover. Either this is is bull trap or the recent market plunge is only an intermediate bull market correction. If the latter proved to be correct, then the markets look poised to break new high as buyers come in to buy at dips.

Personally, i have switched from being bearish to neutral. I will be looking to buy if / when the stocks retreat back to retest the support area. For bullish continuation patterns, we should be looking for stocks to consolidate around the resistance area instead of seeing price action making lower lows and highs. Below are charts for S&P500 and LVS.

S&P500

Las Vegas Sands