Daily Form June 15, 2007

Profit Patterns and Risk Management For Active Traders
Trade successfully without having to be right about the underlying market direction
FRIDAY JUNE 15, 2007       06:13 ET

The rally continued yesterday but the volume was more subdued. QQQQ, the Nasdaq 100 proxy registered just two thirds of its average daily volume. As the chart below for the Nasdaq Composite index (^IXIC) shows the index has made a resilient recovery since the downthrust on June 7th but we shall be watching today for possible evidence that a lower high could be in the process of forming on this index.

The banking index (^BKX) stalled at the intersection of the 20 and 50 day EMA’s in yesterday’s action.

The exchange traded semiconductor sector fund IGW is approaching the recent highs. The stock gapped up on the open but we were not too impressed with the below average volume.


The patterns identified below should be considered as indicative of eventual price direction in forthcoming trading sessions. None of these setups should be seen as specifically opportune for the current trading session.
For full details on time horizons, risk management and hedging techniques please visit http://www.tradewithform.com

FAST  Fastenal Company Ltd  

Earlier in the week we noted that Fastenal (FAST) could run into selling pressure as it approaches $42. The star formation from yesterday may be a precursor to further weakness following the recent pullback channel.

GIS  General Mills Inc.  

We also will repeat another of our suggestion that General Mills (GIS) could provide an opportunity on the short side at $60.

MXIM  Maxim Integrated Products  

Maxim Integrated (MXIM) has almost completed the move up towards $33 as suggested in our commentary earlier this week.

PH  Parker-Hannifin Corp.  

Parker-Hannifin (PH) has a second small doji star formation at the $100 level and there is a possibility that lower top could about to be registered.