Synergy Position Trade Letter

Hey gang,

It's been a tough summer when it comes to position trading. I've spent most of it managing open positions and scaling out of long-term holds and not focused much on initiating new ones. Most of the larger market moves were on the downside and off 52-week highs, which make them higher risk for longer-term. This week though, I do have a few new things I will be watching. My top pics are to the downside and include CAKE, ADP, and IRF. All of these have turned over in recent months with low level congestion and momentum which favors additional downside. I will prefer to locate setups on the daily time frame in these and likely will scale into positions as opposed to just jumping in all at once in this current market. In CAKE there is a risk of a false breakdown trigger, followed by a correction back into the trading range before it breaks lower again.

On the upside, some things I will be watching include NEM, GG, SYY, ALTR, SLAB, EBAY and PAY.

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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.

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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.

8/27/2007 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.

8/13/2007 Iron Mountain Incorporated (IRM) gave a continuation setup on 8/31/2007 at $28.14. It has highs so far of $29.00. My initial target is $40.

8/6/2007 Chesapeake Energy Corporation (CHK), 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. CHK gave an initial setup on 8/31/2007 over $32.06, but it can still have one more flush left in it on eh monthly time time. It has highs of $34.31.

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

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). Some adjusted stops hit.

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).

5/7/2007 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 $29.64 (+$14.64, +97.6% 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 $31.72 (+$14.22, +81.26% 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.

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