Tuesday, April 17, 2007

Watch List - CKFR, ERTS

CKFR gapped down last week and has since closed the gap. Now its heading lower and looks ready to fall below $36.00. Support levels are indicated by the blue lines where we can expect some consolidation. Review the 15 minute timeframe below.

ERTS has carved out a multi-month base and looks ready to breakout above the pivot point - $54.48.


Prospectus said...

For a swing on ERTS, I'm thinking target $57, stop $54, entry $54.52. On CKFR, I'm thinking $35.98 entry, target $35, stop $36.25.

What do you think of those numbers? Are they reasonable?

Jamie said...

I entered CKFR on break of yesterday's low but I covered at $35.72 - not enough volume.

ERTS - I don't recommend a swing long because I think the market is going into correcting phase. Maybe review this option next week after options expiration.

Prospectus said...

Jamie: On ERTS, do you mean the broad market is correcting, or ERTS?

I saw the same problem with CKFR, BTW. I didn't trade it, though.

Jamie said...


Sorry, I meant the broad market is correcting. That said, I don't recommend taking a long swing trade during a market correction. ERTS had a nice reversal off of the morning lows and rallied back up to the PP, but failed to hang on into the close. Similar to my THE trade earlier this week.

The Nasdaq has formed a bearish evening star type pattern on the daily timeframe and it was very weak at session end. Of course strong earnings tonight and tomorrow morning from EBAY and others could put the market in a different mood tomorrow. But still I would not plan a swing trade until after options expiration on Friday. BTW, ERTS reports on May 3rd, AH.