How to Boost Your Returns With ONE Secret ETF Strategy

[Thierry Martin]

FB (Long/$25.00 Stop) - Since it's debut Facebook has been in a tailspin headed to the ground floor. As of yesterday's close ($26.90), the stock appears to be oversold. The chart pattern is a typical three push down pattern that is indicating seller momentum is waning.

Now, this does not mean buyers are going to get aggressive, it simply means that sellers are getting tired and that, at current... levels, the bulls may find the stock appealing. Also, a typical protracted move usually ends with a three push pattern which could also mean that shorts will now be tempted to cover their positions. If this does happen, you could see a short-term bounce back to the low $30's.

In any case, if you've been waiting on the sidelines for an opportunity to get involved, this may be it.

[Thierry Martin]

We didn't need a watchlist today! Stocks running left and right straight off scan. EFTI went 150% from alert, AUMN went 20% and plenty of other runners today, CBLI BPAX BWMG EEDG USEI SMBL ZLCS etc. Join us in chat tomorrow. It's free for a limited time. Here's your list for Tuesday:

CBLI BPAX INSM AUMN SMBL GV XNPT PTNR MVIS GMO REED NG MUX NVTL FTEK NCIT HWAY HNSN SNTA CLSN AAU PSUN AUTH VRNG ZLCS

OTC's: BMWG EEDG GWBU EFTI GMND IPRU MDHI USEI

[Thierry Martin]

ETN has gotten pounded the last few days... I thought the beating it took last friday was overkill... Picked up up Friday evening. Hoping it would go up today...

Boy I was wrong... Thank god for a tight stop loss order...

What am I missing on this stock.. Great P/E Ratio, good management, I guess the biggest risk, is all the companies they have bought this year... But is that really the reason for the beating its taking?

[Thierry Martin]

Stocks To Keep On Your Radar Screen next week - Full article and charts

Could be an interesting week for Career Education Corp. (NASDAQ:CECO) investors as the stock is showing some signs of a possible technical rebound in the making. The MACD and CMF are still showing positive divergences and the MFI is moving up and currently it has a value of 63.60 below overbought region of 80. There is positive money flow for the stock. The key technical resistance level investors will be watching is the 7 area. A breakout above this level could send the stock on a major push higher.

[Thierry Martin]

The "Chart of the Day" is Coca Cola Femsa (KOF), which showed up on Friday's Barchart "All Time High" list. Coca Cola Femsa on Friday rallied to a new all-time high of $117.90 and closed up 1.70%. TrendSpotter has been long since April 20 at $106.59. In recent news on the stock, the Bill & Melinda Gates Foundation in Q1 had a 6.2 million share position in Coca Cola Femsa. Coca Cola Femsa, with a market cap of $21 billion, produces, markets and distributes soft drinks throughout the metropolitan area of Mexico City, in Southeastern Mexico and in metropolitan Buenos Aires, Argentina.

To access recent archived Chart of the Day reports, please go to:
http://www.barchart.com/headlines/se...=BC&series=COD

[Thierry Martin]

Chart of the Day (June 4, 2012) - AIG in a nested pattern (AIG)

[Thierry Martin]

Random Thoughts

Referring the chart below, notice that the S&P made multi-year highs and subsequently stalled short of those highs (1). It then sold off hard (2) and pulled back (3). This action set up a variation of a pattern I have dubbed a "First Thrust." See the article above for more details. On Friday, we saw nice follow through out of this pattern.

I use the world "nice" in terms of my positing and technical analysis. I'm not happy that the market went down. I'd prefer if it just climbed steadily for years and years. Unfortunately, unless you're Bill Clinton, what is, is. So, I am happy that the charts worked. Forget about your bias and what you hope will happen and just follow the charts. What is, is.

As this market correction (which is now a bona fide slide) began to unfold. I wrote and spoke (see webcast archives) a lot about the ebb and flow of using money management and the charts to adjust your portfolio. Your longs begin to stop out and you start establishing shorts. You don't make big picture predictions. You just take things one day at a time and let it all unfold. And, you end up net short in a down market.

So what do we do? Take partial profits on existing shorts as offered and trail your stops lower. Further, honor your stops on any remaining longs. Since the methodology is pullback in nature and the market /most stocks/sectors are making new multi-month lows, they aren't a lot of new setups. This is probably a good thing since the market is becoming oversold. Therefore, manage what you have and wait for the next cycle.

Futures are flat to firm pre-market.