Sunday, May 01, 2011

Four Sector Focus for the week

Most of our favorite set-ups for the week  belong to the following four sectors:  Oil and Gas, Semis, Machinery, and Software
Here’s a sampling and also a few hints on how we look for sector moves:

Oil and Gas:
$OXY has been our favorite in the sector for a while.   We caught a nice break-out at 106 for our subscribers on Friday for an 8 point rip.   OXY is best of breed in the sector and one of our favorite trading stocks.  Disclosure:  long.

Three stocks that are setting up in the broader oil and gas sector are $UPL $APC $COP

Do you remember thic chart we kept posting on the $SMH?   After $INTC earnings the semis gapped above resistance and never looked back.  The sector is hot.

Some aren’t quite ready and some look better, but the names on our radar in this sector are $CAVM $ARMH $SWKS $SPRD

Software:  ORCL caught our eye this week.   Stock is too slow for our type of trading but very impressive move for the big daddy of the software sector:

So you think to yourself, wow, $ORCL is a leader of software stocks, what else is setting up?
You hit Application Software in FinViz (the greatest tool for sector scans and free to boot), adjust volume and price to your liking (over 1 mil, over $20 for us) and voila out comes  the result:
The best set-ups in the sector are $CRM $NUAN $RHT

The last sector is machinery.   We had patiently waited for $CAT to set-up for a while but it gapped over our buy spot.   We focused on the sector and found the following which still have not broken out:
$DE $TEX and one for the low-volume lovers on the stream $ASTE

Getting primed but not liquid– not our cup of tea but we know some of you love these thin ones: