Six Stocks for 2007

First are the two stocks I’m bringing over into the New Year, STP and GLW.

(All Daily charts are six month, All Weekly charts are two year)

STP is one of the hottest stocks I’ve seen in awhile. As mentioned in previous articles, alternative energy will stay hot through 2008 as elections will probably go to the Democrats and a new environmentally conscious congress will give bigger tax breaks and incentives to businesses for clean energy.

Charts show the 50DMA crossing the 200DMA to the upside, which normally coincides with positive stock movement. There is also a healthy amount of supports.

GLW has a strong support right below 18, and the MACD is perfectly inverted. If the trend continues downward, expect a large jump after touching support around 17.7.

We also see a trend on the slow stochastic of 15 day low streaks, then jumps in the stock; we are currently at the end of another streak. (I own shares of GLW in my personal portfolio)

When you watch a stock for long enough it becomes predictable. XWG is a stock that I have profited from on more than one occasion, and I believe it’s that time again. Daily charts show a moderate inverse correlation on the MACD, but more importantly, it’s about to cross the 0 line. Add some volatility with a 50DMA right above the stock, and presto! Similar story on the weekly chart with an even better negativity on the MACD, and a 200WMA right above the stock. XWG is a bit more risky, but we're all young at heart, so live a little. (I will buy shares of XWG when the market opens tomorrow, pending a pre-market run-up or run-down)

We missed out on TINY a few months back when it shot from 9.5 and eventually touched 15. TINY is back down at 12, and I’m willing to bet the recent pull back was just profit taking, nothing more. There is a fairly good trend on the daily slow STO, as annotated with arrows, and I’ve added a box on the weekly chart to show where the stock price should be if it was trending with the MACD (The stock is a bit ahead of itself in the downward direction). With a fair 200WMA support beneath it, I’m giving this one the green light.

ONXX is getting some bad coverage in the media, with their recently nixed Phase III drug, Nexavar. I think investors overly thrashed the stock. I don’t like the three year down trend, and far be it for me to pick a bottom, but we do have a candlestick connoisseur’s doji star, coupled with a solid positive MACD. I like the opportunity but will cut this one free if it keeps falling. (I own shares of ONXX in my personal portfolio)

It’s time to bring back AMGN since we let it slide back to 68, and it’s near a trend line and 200DMA support. If it breaks below its 200DMA @ 65.76, I will probably sell right away, so keep that in mind.

Two stocks I’m watching are HRAY and NVT, I’m not convinced on either of the two, but if anything develops I’ll have an update.
Lets have a great year.

-Chris