Week in Review

U.S. stocks had another difficult week on the back of some weak economic reports, concerns with rising energy prices and some weak earnings. As a result, the Dow Jones continued the slide that started a few weeks ago, and it appears that the Dow and S&P 500 are set to test their lows set in March very shortly. However, on the bright side, the Nasdaq, ND100 and Russell 2000 remain well above their March lows, as the trend lower in the Dow and S&P is clearly a result of weak financial stocks. These stocks are not as prevalent in these other averages, which are more loaded with tech stocks.

Strength continues in the energy and agricultural related issues, which should be the focus of daytrading opportunities from the long side. On the short side, traders should focus on financials, gaming stocks and oil refiners.

Below are three of the very profitable daytrades in the past week that you could have traded utilizing the methodology from our e-book, How to Pick the Best Stocks for Daytrading.


Helmerich & Payne - HP
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Heading into Tuesday's trading, HP exhibited an inside day within a narrow range on Monday. Volume was up from Friday, on an up day, a positive sign. The stock opened at $67.01 and our entry level was $67.91. The stock trended up all day, closing at $70.50. It opened slightly weaker Wednesday, but rallied in the first 15 minutes, offering a good exit opportunity to traders holding over night.


Tenaris Sa - TS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Going into Thursday's trading, TS exhibited the price pattern we look for in a daytrading candidate. It then opened strongly Thursday morning at $64.90. It began trading upward immediately, and an entry price of $65.83 was triggered. TS closed at $68.38, then opened up almost another $2.00 on Friday.


Garmin - GRMN
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Heading into Tuesday's trading, GRMN demonstrated one of the basic patterns we look for in a potential short sale. It then opened up on Thursday, then sold off sharply in the first 30 minutes. The trigger price was around $44.50 and the stock closed at $43.48. The next day it opened slightly lower, offering traders who held short overnight an opportunity to exit.

Remember, when looking for short selling prospects, check with your broker ahead of the open to see if those stocks that are showing up on your list can actually be shorted through your broker. This is not always the case.

Good Trading!

Scott Cole
www.bestdaytradingstocks.com
www.kungfutrader.com