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I'm looking for entries in these 3 movers

By Michael Kestler | TradingMarkets.com
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My approach to the markets Friday morning was to be aware of a potential down day. The markets had rallied for the last 5 days, and some profit taking was probably the order of the day. I was forced to trade without my scanner due to technical problems, so I went back to the several stocks that I had been trading all week. Johnson&Johnson (JNJ | Quote | Chart | News | PowerRating) Haliburton (HAL | Quote | Chart | News | PowerRating) had been very active all week. They had the necessary price action today to allow for successfully scalping throughout the day. Because I was trading HAL I was aware of Encana (ECA | Quote | Chart | News | PowerRating) and Exxon (XOM | Quote | Chart | News | PowerRating) as well.

I have attached a couple charts to give you a glimpse of how I was trading these two stocks today.





As you can see, I was trading various chart patterns throughout the day. It is of great assistance to be able to “read the tape” at these crucial points. If a reversal area has no strong bids or offers showing up, then a move is not very likely. It is one thing to look at volume bars on a chart. It is a whole different thing to watch the volume on a trade-by-trade basis and know to evaluate and act upon the order flow.




I will keep an eye on HAL, XOM, ECA on Monday. The energy sector has become extremely volatile and has been providing excellent traders during the last several weeks. I will also be aware of (MRK | Quote | Chart | News | PowerRating), (JNJ | Quote | Chart | News | PowerRating), and (GDT | Quote | Chart | News | PowerRating) because there is quite a bit of uncertainty when it comes to the direction of these stocks. Look for JNJ to break below $60 if we get a down market.

Also be aware of El Paso Corp (EP | Quote | Chart | News | PowerRating) as they will be releasing their earnings before the market opens on Monday

Everybody have a great weekend.

Mike Kestler

Please e-mail with any questions you might have at mkestler@evotrading.com

Michael Kestler is a full-time professional trader and managing partner for Evolution Capital LLC., a proprietary trading firm. Mr. Kestler specializes in intraday trading of NYSE listed stocks. Before founding Evolution Capital LLC., Michael began his career on the floor of the CBOE. Mr. Kestler was previously a Mid-Cap and Nasdaq Market Maker. www.evotrading.com

 


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