SPY, ALLT, JPM, UNDT, POTG
S&P 500 ETF (SPY:NYSE) SPY is obviously the market’s flagship ETF, and it’s no secret that many view SPY as oversold. A late summer day in a down market, is often disastrous for longs, but shorts may cash in their huge piles of chips before the weekend. However, there is no need for long term buyers to be heroes in this market, but Friday’s market could be a scalpers dream.
Allot Communications (ALLT:NYSE) Shares were down this week in anticipation of a stock offering. However, the deal was canceled after Thursday’s close, due to market conditions. So it wouldn’t surprise many if ALLT bounced. Shares were over $16 on Monday.
JP Morgan (JPM:NYSE) JPM is often the first financial stock that bounces on reversal days. So it might be wise to use the name as an indicator for other trades as well. There is also some nice built up support layers in the mid-$36 area. Put JPM on your list of stocks.
Universal Detection Technology (UNDT:OB) This security related penny stock has been around for a while and is frequently played by scalpers. UNDT often trades heavy volume during terror scares, so it was somewhat surprising to see it do so well today. Shares were up 25% on Thursday after a PR. Keep an eye on UNDT Friday, because there is some potential for follow through if the broader markets rally.
Portage Resources (POTG.PK) Monday’s news of a stock split didn’t go over as well as some thought. Granted the market is down, but POTG is trading near 52 week lows, despite being a hot penny stock not too long ago. Maybe bounce buyers will rally the once strong POTG, but this current downtrend doesn’t look that appetizing for longs. Add POTG to your penny stock list on a just in case basis.
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