Stock Picks - Week beginning 12/1/08

Sorry that I won't have any charts for this commentary - I'm traveling and it's a pain on the laptop.

As for the S&P, if the bulls can overtake the 906-916 range, we could see 945 before the week's out. If there is madness on Monday, 960 is not out of the question. However, I think the recent run will make folks itchy to take profits, and we could have a "long squeeze" so to speak - any sign of weakness brings us quickly back to the 835-840 range. In spite of the dip a couple of weeks ago, this chart I provided earlier is still basically intact - http://joeslat.blogspot.com/2008/11/s-500-chart.html. There remains a very low possibility that any good news comes out about anything. Still, if Obama is going to get on the tube every day at 10 a.m., then he is clearly being advised by a trader, and a clever one at that. As long as he can freeze the markets every day, a bottom will likely shape, if for no other reason than exhaustion.

This week, I have picked 8 longs and 2 shorts. I have a bonus short that I won't put in the portfolio, but it seems pretty interesting. I should point out that the target price isn't for the week - it's typically a 25-45 day price target. I will trade these stocks only on the bias below, and only when the intraday chart is moving in the same direction (up or down). Like last week, we're hoping for 1 or 2 to get to their target price this week. One 25% gain carries a lot of losers.

Longs:
GOLD - Randgold Resources - Double bottom, Closed Friday $38.23, $50 target
UTX - United Technologies - Bottom Triangle, Closed Friday $48.53, $63 target
CFX - Colfax Corp, Head & Shoulders bottom, Closed Friday $9.56, $12.40 target
AUY - Yamana Gold - Double bottom, Closed Friday $5.81; $7.50 target
PCG - PG&E Corp, Bottom Triangle, Closed Friday $38.04, $49 target
TNE - Tele Norte Leste ADR - Double Bottom, Closed Friday $14.68, $18.60 target
PEG - Public Services Enterprise Group, Bottom Triangle, Closed Friday $30.90, $39 target
SGP - Schering Plough Corp, Triple bottom, Closed Friday $16.81, $20.80 target

Shorts:
WMI - Waste Management Inc, Symmetrical Continuation Triangle, Closed Friday $29.30, $21 target
PXD - Pioneer Natural Resources, Bearish flag, Closed Friday $20.08, $12.50 target

Bonus:
Short: BKS - Barnes & Noble - this one may not break down this weekend, but if we get a series of bad retail news, this could really tank. Closed Friday @ $15,78, $10 or less for a target.

Also, I would like to give props to this web site - I've met some good folks there and it is a fun chat to trade with: http://www.ustream.tv/channel/daytraderrockstar-show

Joe