Play Editor's Note: As of this evening the deal making in Washington has failed to reach a consensus so there is no agreement yet on how to implement the government's bail-out plan. We're getting a lot of rhetoric from both sides of the aisle. Some argue that lawmakers need more time to "get it right the first time" before Congress takes a recess ahead of the elections. News that no agreement has been reached could push stocks, especially financials, lower tomorrow although I didn't see any after market weakness. Most pundits tend to believe that some sort of agreement will be reached by Monday. Until regulators agree on some sort of rescue plan this market is going to be extremely volatile and very tough to trade. The best plan may be to just sit back, preserve your capital, and not trade.
A few stocks I'm watching...
RIMM: Keep an eye on RIMM tomorrow. The stock reported earnings tonight and was trading under support at $80.00 as investors react to their forecast. The P&F chart has a $60 target. Once the knee-jerk reaction to earnings is over RIMM might be a candidate to catch an oversold bounce.
CEPH: This biotech stock has rallied back to the top of its trading range. A move over $79.00 would look like a new bullish entry point.
SRCL: This stock is bouncing from previous resistance. Any follow through higher might be a bullish entry point.
CS: This financial stock is showing a lot of relative strength. Shares are coiling for a bullish breakout over $52.00.
VLO: This oil refiner has bounced back toward resistance at the top of its trading range.
STRA: This education stock might be a bearish candidate on a new relative low under $207.50.