NEWN Rev Shark buying this A.M....
Gaps Down After a Strong Finish Present Major Challenges
By Rev Shark
RealMoney.com Contributor
11/23/2010 10:49 AM EST
The dip buyers were turned back on their first try, but a fair amount of stocks are bouncing back from the weak close. Netflix (NFLX - commentary - Trade Now) and Coinstar (CSTR - commentary - Trade Now), for example, are in the green. Breadth is very poor with about 700 gainers to 4400 decliners. Gold is bucking the trend despite the strong dollar, which is weighing on oil, steel and other commodities. Banks continue to act very poorly, but technology stocks are showing a little relative strength, which is going to be the key to a market turn.
These gap downs after a strong finish present some major challenges. You have to be disciplined and honor stops. on the other hand, however, the dip buyers have consistently jumped in, so you don't want to panic sell into weakness.
I've taken a few stops, but I'm looking for buys New Energy Systems. (NEWN - commentary - Trade Now), which is one of my favorites, is acting quite well today and is trying to move through 8 resistance on very good early volume. Gold Resource (GORO - commentary - Trade Now)and Golden Minerals (AUMN:Amex) are high momentum mining plays that are acting well, and I have my eye on Magnum Hunter (MHR - commentary - Trade Now), which I want to add over 6.05 or so.
Long CSTR, NEWN, GORO, AUMN and MHR but positions will change at any time.
