CCME was highlighted by Rev Shark this A.M.
Trading Spaces
By Rev Shark
RealMoney.com Contributor
10/26/2010 10:40 AM EDT
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We gapped down on a stronger dollar, but the dip buyers are inching in, and slightly better-than-expected consumer confidence is helping. Keep in mind that dip buying has worked consistently for months, so it tends to occur automatically on any weakness. It is only after the dip buyers are burned a few times that downtrends gain momentum.
Breadth is about two-to-one negative, with oil and banks leading, while steel, chips and gold are lagging. It is very mixed action, with no obvious themes. The dollar is stronger, which is hurting commodities, but many in the group are bouncing off their early lows.
I'm staying focused on interesting setups and am trying to knock out some trades while watching to see how overall market direction develops.
Spreadtrum (SPRD - commentary - Trade Now), which I mentioned yesterday, continues to look good, and I'm adding a little in anticipation of a move through resistance at $14. Rare earth plays are perky, and I'm watching China Shen Zhou Mining (SHZ - commentary - Trade Now) for a reversal and a move back toward $3.50. TransGlobe Energy (TGA - commentary - Trade Now), a little Canadian oil play, has estimates of $0.61 for 2010 and $1.02 for 2011. It looks to be breaking out today. China MediaExpress (CCME - commentary - Trade Now) is a China play that looks to be turning back up after a pullback. Support.com (SPRT - commentary - Trade Now) is a low-priced software player, trying to break out over $5.
At the time of publication, Rev Shark was long SPRD, SHZ, TGA, SPRT and CCME, but positions can change at any time.
AI
