Synergy Position Trade Letter

It's been a pretty crazy summer with very few setups from a position trading perspective. Now, however, we are starting to see reactions to support levels and many stocks are rounding off and trying to bounce. I think that for the most part the swingtrades are going to be a bit easier, but I do have a few things I have started watching. Most are briefer position trades, looking for a few weeks to a few months, but it's better than nothing! These include LMT, FDX, ROS, AT, and ASN.

My focus stock this week is Wells Fargo & Co. (WFC). Wells Fargo & Company, through its subsidiaries, provides banking and financial products and services in the United States. The company operates in three segments: Community Banking, Wholesale Banking, and Wells Fargo Financial. While most financials have been beaten down lately, WFC had greatly outperformed and is even in a nice base along the monthly highs. I am watching for a continuation of this breakout on intraday setups for a buy to hold for up to a couple of months. The $35 zone is support.

http://www.tradingfrommainstreet.com/images/positiontradeletter/PT20070827wfc.gif

To learn more about how I locate and trade the positions in this letter, check out my new CD course at http://www.swingtrader.net.

Chart brought to you by Real Tick III by Townsend Analytics, Ltd.

Updates on Open Positions

CLICK HERE for a complete track record since Dec. 2002.*

Positions in green have triggered and are profitable. Positions in red have triggered but are not yet profitable. Those in blue have not yet triggered.

8/13/2007 Iron Mountain Incorporated (IRM), together its subsidiaries, provides information protection and storage services in North America, South America, Canada, Australia, New Zealand, Mexico, Europe, Latin America, and the Asia Pacific. IRM has been forming a triangle at highs over the past two years and over the last couple of weeks it has made an effort to begin to break higher out of that trading range. I did miss out on the initial buy trigger for this setup over the $28.30 level, but will be watching this stock over the next several weeks to months for another opportunity with an initial target of $40.

8/6/2007 I did a great deal of scanning this weekend, and nearly every one of the S&P 500 looks lower on the weekly and monthly time frames as the year continues. I've had a very difficult time in recent months in finding decent setups on the larger time frames for position trades and longer term buys and very few of the stocks I scanned through this weekend are even close to what I would consider to be an ideal buy. In fact, not a single one of them was one I would deem to be a low risk setup.

I do have one stock that still really stands out on the weekly and monthly time frames that I do like, but as is the case with MMM from a few weeks ago, this stock can also still hold its base and congestion for several months or more before it really gets going, so these two are things I am more comfortable accumulating coming off the lower levels within the range itself for the time being instead of take any new break to weekly highs, since those are more likely to not hold for the time being. This second stock is Chesapeake Energy Corp. (CHK).

Chesapeake Energy Corporation, an oil and natural gas exploration and production company, engages in the acquisition, exploration, and development of properties for the production of crude oil and natural gas from underground reservoirs. As many of you may recall, CHK has been on our radar since last December, when I also expressed that a longer consolidation was likely. I will continue to monitor this for additional setups within the congestion itself, as I will with MMM. Do not be surprised it it attempts to take out the lows made at the beginning of this year before it can turn back over again. FWLT on the weekly time frame early last year has a pattern similar to CHK on the monthly time frame. RVBD on the weekly into the end of last year was also the same pattern. Notice how both flushed lower before taking off. Even though FWLT and RVBD were weekly setups, the same potential exists on the monthly time frame in CHK. You can check out these comparisons in the charts displayed below. The blue arrows point to the corresponding locales on each of the stocks and show where CHK is likely at in this same pattern development. MMM is very similar.

7/9/2007 3M Company (MMM) operates as a diversified technology company. It operates in six segments: Industrial and Transportation; Health Care; Display and Graphics; Consumer and Office; Safety, Security, and Protection Services; and Electro and Communications. In recent years MMM has fallen into a trading range and it has recently formed a reverse head and shoulders pattern over the last three years. It is now retesting the highs of the range and although it may take several months for it to base along these highs before it breaks, MMM is one of my favorite "must-have" stocks for the next several years. MMM gave an "early" trigger on 7/12/2007 over $88.81. It has highs so far of $92.32.
Other stocks to watch for long setups: TLK
Other stocks to watch for short setups: GENZ

6/11/2007 McGrath Rent Corp. (MGRC) gave a buy setup on 6/12/2007 over $32.16. It has highs so far of $36.75 (+$4.59, +14.27% move).

6/11/2007 Shinhan Financial Group (SHG) gave a buy setup on 6/20/2007 over $125.98. It has highs so far of $148.99 (+23.01, +18.26% move).

6/11/2007 Sandisk Corp. (SNDK) gave a buy setup on 6/11/2007 over $44.28. It has highs so far of $59.75 (+$15.47, +34.94% move).

5/21/2007 Saks Incorporated (SKS) may or may not have triggered, depending upon the entr strategy employed. If triggered, the entry was over $22.80. A few trades went off at that level to trip most stop buy orders.

5/14/2007 The Toronto-Dominion Bank (TD) gave a buy setup on 5/14/2007 at $62.89. It has highs so far of $70.65 (+$7.76, +12.34% move).

5/14/2007 Black & Decker Corp (BDK) gave a buy setup on 7/11/2007 over $89.53. It has highs so far of $97.01 (+$7.48, +8.35% move). $86.00 is the closest main support.

5/7/2007 Universal Health Services, Inc. (UHS) Two potential entries to day: May 7th and May 21st over the previous day's highs. Target: $90-$100. Tight trailing stops hit. Long term stops under 2005 lows.

4/16/2007 ConocoPhilips (COP) gave a buy setup on 5/14/2007 over $70.55. It has highs so far of $90.84 (+$20.29, +28.76% move). $60.00 is support.

4/16/2007 Kla-Tencor Corp. (KLAC) gave buy setup on 4/26/2007 over $54.95. Highs so far of $62.67 (+$7.72, +14.05% move).

4/16/2007 Amazon Com. Inc. (AMZN) gave buy setup on 4/16/2007 at $43.77. Highs so far of $89.00 (+$45.23, +103.34% move).

4/16/2007 Pepsico Inc. (PEP) gave buy setup on 4/16/2007 over $64.59. Highs so far of $70.25 (+$5.66, +8.76% move).

4/16/2007 Boeing Co. (BA) gave buy setup on 4/16/2007 over $91.10. Highs so far of $107.83 (+$16.73, +15.52% move).

4/9/2007 Schnitzer Steel Industries, Inc. (SCHN) gave a continuation buy on 4/16/2007 over $46.32. Highs so far of $64.38 (+$18.06, +38.99% move).

4/2/2007 Freeport-McMoRan Copper & Gold, Inc. (FCX) gave an initial buy on 4/3/2007 over $67.19. High so far of $100.15 (+$32.96, +49.05% move).

12/11/2006 The J. M. Smucker Company (SJM) gave a breakout buy setup on 2/13/2007 over $48.30. Highs of $64.32 (+$16.02, +33.17% move).

12/4/2006 Ross Stores, Inc. (ROST) gave a buy setup on 1/3/2007 over $31.15. It has highs so far of $35.17 (+$4.55, +14.61% move).

12/4/2006 Key Technology Inc. (KTEC) gave a buy setup on 12/18/2006 over $15.00. It reached highs of $28.79 (+$13.79, +91.93% move) so far. Some trailing stops hit.

12/4/2006 Granite City Food & Brewery (GCFB) gave a buy setup on 12/19/2006 over $5.35. It reached highs of $6.61 (+$1.26, +23.55% move) so far. Some trailing stops hit.

12/4/2006 Ceradyne Inc. (CRDN) gave a buy setup on 4/3/2007 over $56.00. It reached highs of $84.41 (+$28.41, +50.73% move) so far. Some trailing stops hit.

12/4/2006 ConocoPhillips (COP) gave a buy setup on 12/5/2006 over $67.66. This was a higher risk setup due to the lack of a weekly base. It reached highs of $90.84 (+$23.18, +34.26% move) so far. Some trailing stops hit.

12/4/2006 Questar Corp. (STR) gave a buy setup on 12/4/2006 over $43.65. This was a higher risk setup due to the lack of a weekly base. It reached highs of $58.75 (+$15.10, +34.59% move) so far. Some trailing stops hit.

12/4/2006 Chesapeake Energy Corp. (CHK) gave a buy setup on 2/23/2007 at $30.08. It reached highs of $37.75 (+$7.67, +25.50% move) so far. Some trailing stops hit.

11/6/2006 KT Corp. (KTC) gave a cont. buy setup on 11/7/2006 over $23.44. It hit highs of $26.67 (+$3.23, +13.78% move) so far. Adjusted stop under $21.72 on remaining.

11/6/2006 Ceradyne Inc. (CRDN) gave a cont. buy setup on 11/6/2006 over $48.33. It hit highs of $84.41 (+$36.08, +74.65% move) so far.

10/30/2006 AGCO Corp. (AG) gave a buy setup on 11/1/2006 over $27.68. It hit highs of $46.47 (+$18.79, +67.88% move) so far.

9/18/2006 Henry Jack & Assoc. Inc. (JKHY) gave a buy setup on 9/20/2006 over $21.12. It hit highs of $27.00 (+$5.88, +27.84% move) so far.

9/18/2006 Varian Inc. (VARI) gave a buy setup on 9/20/2006 over $48.75. It hit highs of $62.49 (+$13.74, +28.18% move) so far.

9/11/2006 Sigma Aldrich Corp. (SIAL) gave a buy setup on 9/15/2006 over $36.82. It hit highs of $50.98 (+$14.16, +38.46% move) so far.

8/7/2006 Stericycle, Inc. (SRCL) gave a buy setup on 9/20/2006 over $34.00. It has highs of $56.88 (+$22.88, +67.29% move). Tight trailing stop likely to hit this week.

7/24/2006 Allegheny Energy Inc. (AYE) gave an initial watch list buy setup on 7/24/2006 at $39.89. It has highs of $57.30 (+$17.41, +43.65% move). The 20 week sma is support. Some trailing stops hit.

7/17/2006 Williams Cos. Inc. (WMB) gave a watch list buy setup on 7/24/2006 over $23.29. It has highs of $35.84 (+$12.55, +53.89% move). $25.00 support.

7/10/2006 Immucor Inc. (BLUD) gave a watch list buy setup on 7/20/2006 over $19.77. It has highs of $35.99 (+$16.22, +82.04% move). $16.00 support. Some trailing stops hit.

7/3/2006 ITT Educational Services, Inc. (ESI) gave a breakout buy setup over the $66.18 zone on 7/28/2006. It has highs of $121.34 (+$55.16, +83.35% move) and support at $65. Some trailing stops hit.

6/05/2006 RPM International, Inc. (RPM) gave a breakout buy setup on 9/5/2006 over $19. Highs $25.74 (+$6.74, +35.47% move). Some trailing stops hit.

3/27/2006 Berkshire Hathaway, Inc. (BRK.B) gave a breakout on 5/16/2006 over $3000. It has highs of $3999.90 (+$999.9, +33.33% move). - Brandon

10/17/2005 ASML Hldg NV N Y SHS (ASML) over $17.50 on 11/02/2005. Highs $30.85 (+$13.35, +76.29% move) (channel break trigger). $17.00 is support for a long term position. Trailing stops hit for shorter term position traders. - Toni

* DISCLAIMER: Results are based upon best price hit before the position was closed, or the stop if that hit first. Note: Trading in commodities and securities may not be suitable for all individuals. Consult your broker or other professional to determine your suitability. The discussions provided by Trading From Main Street are for educational purposes only and should not be taken as a recommendation to buy or sell the referenced security. Past performance is not indicative of future results.

If you are receiving this from a friend and would like to have it sent to you, click here.

The above disclaimer and copyright is applicable to all material published on behalf of the Bastiat Group. including, but not limited to, the Morning Watch and News Letter and Weekly Position Trader.

Please visit the Support Center to email questions or comments or contact support@tradingfrommainstreet.com.

To UNSUBSCRIBE from the Position Trader email list, please respond to this email with the word "unsubscribe" in the subject.