And the Bull Rages On! Watchlist for 9/17/09

As one of my trading friends likes to say, "Where did all the top calling bears go....guess the bulls ate em!" TRADE THE DAMN TREND! THE TREND IS YOUR FRIEND! Such simple concepts, yet I keep seeing all these people call the top. We have new highs on the year for the 6th day in row, and we still have another 30 or so points on the SPX to go until we have any resistance. We have a big data day tomorrow morning with Building Permits, Housing Starts, and Inital Jobs Claims at 8:30, with the Philly Fed at 10. My take, if the market wants an excuss to pullback tomorrow then these numbers should do the trick, but I think if we get any tiny bit of good news out of these numbers...FORGET ABOUT IT! I could very easily see a bunch of short covering, pushing the SPX up to around the 1090 area by FRYday. And for the five people that might have read my blog yesterday, your welcome for a perfect 4 for 4 almost pinpoint perfect entry on the entire watchlist. So without further adue, the watchlist for tomorrow:

Pick #1
I always like to be hedged...so we'll start with a short, I like a FSLR (First Solar) short here, not a full postion (I shorted 50 shares at the end of the day today, and will add either way tomorrow) It has a nice downtrend line around 147, and I think all the shorts have been fried in it, so now it will probably come down. I would cover if it got through its 200 day EMA which is around 155, but the odds of that are very slim. Target for this trade is 140 area(I figured out how to get my charts on here too)



Pick #2
CHL (China Mobile) Long. This isn't a fast mover, but its got a great trendline thats its bounced on five times and it just got a bullish MACD cross today. If you can get it around the 50.50 area, it's a buy.



Pick #3
C (Citigroup) Long. I know I know, I hate this company too, but we've had a very nice pullback to it's 50 EMA, and a nice downtrend line, the closer you can grab it to 4 the better. You might have to take a little pain, but I think it goes back to 5.



Pick #4
CENX (Century Aluminum) Long. Chart says it all...bullish MACD, bullish stochastics, closed over it 200 EMA...



I'm out for now, Im gonna try to add more later, I continue to be short PALM, and ABX, will be looking to take profits in SPG, and RIMM.

P.S. Looking for a pull back in basic services across the board and possible rotation into healthcare JNJ, PFE, AMGN all long bases ready to resume.