[INTRA-DAY ACTION]

Day one of the week and already in an out of a very successful short on SOLA. As mentioned in the watchlist, the trigger to short SOLA was 565, with a price target of 525.

SOLA got mauled today and closed down 11%, triggering our stop en-route to a daily low 1 pence below my price target for an ultra quick 7.5% gain. SOLA never ceases to amaze me with its predictability in terms of price targets and entry/exit signals. Will we see a recovery, or will we see further drops?

Here's a snapshot of todays price action with reference to entry points as mentioned in this weeks watchlist:


The oil price must have dropped sharply today in the US.

Elsewhere on the watchlist FXPO made new highs but looks weak and I think it will retrace to 420 shortly. BATS is more or less right on the trend line with a huge daily raise culminating in a horrible looking spinning bottom so hold back for entry signals, looks like it might go further south. MARS also looking fragile with a similar setup, and I get the feeling we'll get a signal to short rather than go long with these two.

As I scan through a few charts quickly I see BP. had a good day, and I'd look to enter long with a trigger price of 600 with stops at 590 if this comes around this week. The MAs on BP are also looking to hold support at current levels so we could see some quick rises shortly.

A hammering for the banks as RBS shed 5%, the important numers here are 220-223 with stops at 215 representing a new low.

Cairn Energy (CNE), Wellstream (WSM), Tullow (TLW), Premier Oil (PMO) and Soco (SIA) look really good today. Also, BG. from the past few weeks is looking good for entry now, as I think we've finally gotten our entry signal we've been waiting for. At this point, I also think that Northgate (NTG) has reached its lows, so speculative call on an entry at current price with a very tight stop at 495.

Today was important from an analysis point of view, given the sell off on Friday. Companies showing recovery today should set themselves up nicely for a run this week. Interestingly, from the companies I mention today that weren't on the watchlist, all bar one are in oil and gas.

Scanning a bit more in depth at the moment is showing some nice looking charts after today. I won't get too involved because I'll get tempted to trade. And if I get tempted I'll have to wait another week before I can take my money out of the iii account. Plus it would mean giving them another £20 which I'm not keen on.

This is a pretty quick way to check the health of the market-
  • Stocks making yearly highs today: 12
  • Stocks making yearly lows today: 85
From the recent weeks' watchlists, I notice that on the list of the lows today both SHI and AGA have given sell signals. AGAs was last Thursday, I didn't notice it, but going on the short trigger price you would currently be up 13%. SHI gave a signal to short today so I'll be watching that one.

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