Daily Form April 23, 2008

Profit Patterns and Risk Management For Active Traders
Trade successfully without having to be right about the underlying market direction
WEDNESDAY APRIL 23, 2008       05:24 ET

Equities retreated further yesterday but finished off their lows. For the S&P 500 (^SPC) the candlesticks registered in the last two sessions can both be "contained" within the long green candlestick from last Friday. As the broad indices are stalling many individual stocks are now poised within ascending wedge patterns and I suspect that it would only take a small catalyst to re-energize the bulls.

One sector fund that seems primed for a directional breakout is IGW which represents the semiconductors.

The Hang Seng Index (^HSI) has made steady upwards progress in recent sessions and is now firmly positioned above the 200 day EMA. Today’s close also places the index just above the 38% retracement level from the September 2007 high and the March low.


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.
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DRYS  Dryships  

Last week’s suggestion that "Dryships (DRYS) shows a breakout...with capacity for further immediate progress" was well rewarded in yesterday’s session.

D  Dominion Resources Inc.  

Dominion Resources (D) has pulled back on very light volume towards the convergence of all three moving averages.

TJX  The TJX Companies Inc.  

TJX still looks appealing on the short side.

PDLI  Protein Design Labs Inc  

Protein Design Labs (PDLI) is carving out a bullish flag pattern but may want to retreat a little further to the moving averages just below $13