Synergy Position Trade Letter

Learn more at http://www.swingtrader.net

Hey gang! I don't have a new focus stock for this week since a lot of the stocks I am watching I feel are a bit premature for a setup at this point. I have added Autodesk (ADSK), however, to my short watch list. It is forming a descending triangle on a monthly time frame and could easily shape up over the next couple of months for a breakdown if the momentum shifts on the upside compared to downside with a corresponding drop in volume on a weekly time frame.

On a shorter time frame, American Elec. Pwr Inc. (AEP) is of interest for a swingtrade to weekly position trade. It has formed a momentum reversal buy setup on a weekly chart. It began to break higher on Friday and has room to continue easily into $41 on a daily chart and about $44 on a weekly.

Expect a higher level of market activity this week as a result of the continued shake-up in the financials. Be sure to use extreme caution if you feel the need to participate in this particular sector at this time.

All my best,
Toni

Brandon Fredickson's Blog: http://p5equities.blogspot.com/
Toni Hansen's Blog: http://www.tonihansen.com/blog

Updates on Open Positions

View 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.

NOTE: A lot of positions were closed this past week with trailing stops and exits under support levels. Those that were closed are now located in the larger record.

Watch Stocks:
Long: Most of these will be more ideal after congestion on a weekly time frame: VMC, ALTR, ABT, MAT ABI, JNPR, JNJ, ISRG, GPS, PM, AEP (swing, potential position trade)
Short: ADSK
Remove from watch : TDC

9/8/2008 Intuit, Inc. (INTU) was trading in narrowing triangle from 1999-2005. At the end of 2005 it broke free from the triangle and rallied throughout 2006. Since the end of 2006, however, it has been correcting once again. It completed the second wave of a correction early this year and has been making its way back to the upper end of the corrective channel. A break from this channel will trigger a buy on the monthly time frame. The last low within the channel will serve as support. Initial target zone of $40.

9/8/2008 Kraft Foods Inc. (KFT) gave an initial watch list buy setup on 9/8/2008 over $33.10. This may still rest longer on a weekly time frame, however, before momentum increases. It has hit a high so far of $33.49 (+$0.39, +1.18%).

9/8/2008 Allergan Inc. (AGN) gave an initial watch list buy setup on 9/11/2008 at $57.04. It has hit a high so far of $61.72 (+$4.68, +8.2%).

8/25/2008 Convergys Corporation (CVG) The next major resistance zone is $17-$18 a share, which will serve as the initial target level. If the momentum is strong into that target, then shares can easily land in the $24 zone over the next year. $11.50 is support in the zone of the July low. CVG gave an initial buy trigger on 8/27/2008 over $14.56. It has highs of $16.15 (+$2.16, +14.84%).

8/25/2008 Unum Group (UNM) gave a watch list buy trigger on 8/28/2008 at $24.90. It has highs of $27.30 (+$2.40, +9.64%).

8/25/2008 Medco Health Solutions Inc. (MHS) gave a watch list buy setup on 9/8/2008 over $48.72. $44.50 is support. It has hit highs of $50.88 (+$2.16, +4.43) so far.

8/18/2008 Altra Holdings, Inc (NASDAQ: AIMC) Bullish on AIMC if it can close above $18.25 per share on above average volume... AFAM had much better traits overall and I was more aggressive with that position than I will be with this one, which offer the potential of outsized returns. - Brandon Fredrickson

8/11/2008 TD Ameritrade Hldg. Corp. (AMTD) Cup-with-handle on the monthly time frame. While this breakout began on a daily time frame several weeks ago, it is still at an early stage on the monthly time frame, so I will begin to build a position in this stock. Larger target in the $36.50 zone. It gave an initial buy trigger on 8/28/2008 over $20.50. It hit highs of $21.95 (+$1.45, 7.07%).

8/4/2008 Hitachi Limited ADR (HIT). Beginning of position being built from $74.48 zone on 8/8/2008. My target on HIT is $100-$105. It closed last Friday at $68.39.

Watch Stocks:
Long: Symantec Corp. (SYMC) gave an initial higher risk buy trigger on 8/5/2008 over $21.86. It has highs so far of $22.80. It closed on Friday at $20.57.

7/14/2008 Royal Gold, Inc. (RGLD) Although we missed the initial trigger on this one about two weeks ago, we still have plenty of room to catch it on smaller time frame corrections. This monthly triangle has just now begun to break higher. My target on RGLD is the $48-50 zone. June's lows will serve as support.

6/23/2008 Almost Family (AFAM) gave an early buy trigger on 6/26/2008 at $26.60. It has highs so far of $44.44 (+$17.84, +67.07%). Most trailing stops hit. - Brandon Fredrickson

6/9/2008 Medtronic Inc. (MDT) gave a watch list buy trigger on 7/8/2008 over $52.00. It has highs so far of $56.97 (+$4.97, +9.56%).

6/9/2008 Psychiatric Solutions (PSYS) gave a swingtrade buy trigger on 6/18/2008 over $37.00. It has highs so far of $40.05 (+$3.05, +8.24%). Position trade potential. This has a higher chance to correct for a few months, likely in price, before it can have room to break higher again as a position trade.

6/9/2008 Expeditors Intl Wash Inc. (EXPD) gave a short trigger on 6/11/2008 under $45.71. It has lows so far of $33.28 (+$12.42, +27.19%). Targets hit on swingtrade.

6/9/2008 Allegheny Tech. Inc. (ATI) gave a short trigger on 6/10/2008 under $66.00. It has lows so far of $36.47 (+$29.53, +44.74%). Targets hit. Given 6/2/2008 in the chatroom under $73.67.

6/2/2008 McCormick & Company, Incorporated (MKC) gave an early buy setup on 6/5/2008 over $37.73. It does still have potential to pull back a bit more on the weekly time frame before it can confirm a larger break of this range. It has highs so far of $42.06 (+$4.33, +11.48%).

6/2/2008 Genworth Finl. Inc. (GNW) gave a short trigger on 6/2/2008 under $22.08. It has lows so far of $14.13 (+$7.93, +36.01%). Targets hit for short term traders.

6/2/2008 XMSR gave a short trigger on 6/2/2008 under $10.49. It has lows so far of $6.78 (+$3.71, +35.37%). Targets hit for short term traders.

6/2/2008 Exelon Corp. (EXC) gave a short trigger on 6/26/2008 under $89.36 with resistance at $92. It hit lows of $62.39 (+26.97, +30.18%).

4/21/2008 Old Dominion Freight Line, Inc. (ODFL) gave a buy trigger on 7/16/2008 at $30.73. It has highs so far of $40.09 (+$9.36, +30.46%). Initial target hit. My target zone is between $42-46.

4/7/2008 Rowan Companies, Inc (RDC) gave an initial buy trigger on 4/18/2008 over $41.78. It has highs so far of $47.72 (+$5.93, +14.19%). My initial target is $53. Some trailing stops hit.

3/3/2008 Universal Health Services Inc. (UHS) gave a watch list buy trigger on 3/25/2008 over $51.82. It has highs so far of $65.87 (+$14.05, +27.11%). Some trailing stops hit on shorter term hold. Momo reversal target hit. Larger weekly correction possible for several months before we see higher highs.

11/12/2007 Lilly Eli & Co. (LLY) gave a short setup on 12/31/2007 under $53.71. It has lows of $45.12 (+$8.59, +15.99%). Some trailing stops hit.

9/24/2007 Martek Biosciences Corp. (MATK) gave an initial buy trigger on 9/24/2007 over $28.84. It has highs so far of $38.55 (+$9.71, +33.67%). Some trailing stops hit. This looks lower this week, so can use right trailing stop on the rest unless willing to hold to the 20 month sma.

* 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.

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.