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July 30th: Markets continued up in limp trading. Although closing higher on the week, the markets did not provide evidence for a lasting bottom. The small real bodies and upper "shadow" (ie. supply) in the NASDAQ and NASDAQ 100, the latter in particular, denote weakness. The Dow continues to bump against its 10,150 ceiling, while the Russell 2000 and S&P ended the day on relatively tight trading. The Sox did manage to inch over yesterday's levels, but the hesitancy in the markets will likely be reflected in lower prices next week. A strong bottom should see a firm rally, followed by some light trading back to the lows, what we are seeing now is a weak rally with no volume follow through.

I am updating the stockchart list, so there is no commentary on featured stocks, this will be back next week once the list is complete. Similarly, the stock scan will be reviewed early next week.

July 29th: Markets rallied higher on lighter volume, but the rate of ascent off the week's lows does not inspire confidence for their continued success. The combination of falling oil prices and a rising Sox index gave the markets a boost. The Sox looks best positioned to continue the nascent tech rally, although the Dow looks vulnerable to a correction back to its lows - the upper shadow candles denote supply in the rally. Small real body candles of the NASDAQ and NASDAQ 100 support the idea for a weakening rally. Only the Russell 2000 had a strong day, but it sits a long way from its July highs. However, secondary indices do suggest good times are on the way. The $NAA50 indicator has retained bullish divergences in MACD, RSI, and slow stochastics dating back to March 2004. The $NASI indicator is mapping a potential reversal head-and-shoulder reversal, July lows do not look like they will undercut May lows - an important bullish divergence.

Featured stocks remained quiet, although some of the larger caps had a strong day. JDSU gained over 15% on huge volume after releasing earnings. INTC followed its recent pennant breakout by closing inside a prior breakdown gap on higher volume. This should trigger a rapid rally to $26.On the contrary, NT, closed at resistance, the last 2-days have the look of a relief rally, look for a correction back to $3.30. WLDA reversed its recent decline on modest volume, but the move has the look of a relief bounce. Breakout candidate, NOOF, collapsed - hitting its stop on the way down, the company releases earnings on August 5th. The relief rally in AIRN looks complete - note todays spinning top below resistance. AES ended the day on a black candlestick within a larger bear flag - look for lower prices. ERES looks to be forming its own bearish flag. OMNI continued to plunge, although OPSW and SNIC are shapping bottoms. PKTR is undergoing a relief bounce, but remains below resistance defined by the breakdown gap. TASR did not form an evening star, but todays bearish engulfing pattern still favors weakness (and short positions). Penny stock, MOBL, may be forming a very steep bear flag - a break down could cause a large one day loss on panic selling.

Further negative action in the breakout candidates. NOOF which featured on June 2nd, hit its stop on a major price decline on higher volume. HDI featured on July 15th, hit its stop on light trading. NCR featured on July 13th collapsed on disappointing earnings. On the contrary, POT, featured on June 18th, reached its price target - ending the day on a neutral doji at $100 psychological resistance.

July 28th: Higher oil prices dominated todays trading. The late afternoon rally gives the bulls the edge, but until we see the start of a new uptrend this market remains vulnerable to further selling. The Dow did gain over yesterday, but volume was lower than yesterday and a potential bearish flag could be developing (which would mean a retest of Monday's lows). Interestingly, the DOW tracker stock, DIA, rallied on higher volume and does not appear to be developing a bearish flag. The Sox added another bullish hammer to support, adding fuel to a tech bounce. The NASDAQ and NASDAQ 100 both ended the day on bullish harami crosses - a strong bullish reversal signal. Watch tomorrow's opening hour for leads on market direction - if by early afternoon the market is above todays close it will be a good opportunity to go long. The Russell 2000 ended on a bullish hammer, while the S&P ended the day on a very large doji, closing near yesterday's highs - its tracker stock, SPY, closed higher on stronger volume in a pattern similar to that of the DIA's.

Precious metal stocks posted low key gains, but it was silver stocks which outperformed gold stocks (contrary to what I thought yesterday). PAAS, SSRI, and SIL all posted gains.

It was a quiet day for stocks. Tomorrow could see the big moves. Stocks that look set to do better include; IMAX closed its breakout gap, ending the day on a bullish hammer on low volume; INTC retained its upside pennant breakout, finishing on a bullish engulfing pattern on average volume; JDSU finished the day on a bullish doji, right at May support, on higher volume; LU held May lows as support, a bullish hammer favors upside from here. Penny stock, FNIX, begun a relief bounce, gaining 20% on heavier volume. There was no news to account for todays move. Penny stock, MOBL, regained upward momemtum, closing near resistance after yesterdays bearish move. The company won a new wireless contract which sparked todays 18.82% gain. Not all stocks pointed to future bullishness. Breakout candidate, NOOF, edged lower and is on its way to close its breakout gap from May. Breakout candidate, VLTS flashed a bearish engulfing pattern. Other breakout candidates, ATAC, SLPH, and CMN all appear to be forming double tops. Unlike INTC, SIRI was unable to hold its pennant, closing on bearish cloud cover, watch for lower open tomorrow. CYBS bearish wedge broke to the downside, shedding 9.54%. Look for test of $4.54 support, it closed today at $5.12. TASR's leap looks to have finished on a potential evening star, a gap down at the open confirms, a break of today's high negates the pattern.

Further negative action in the breakout candidates. GIVN which featured on July 16th dipped below support as the rate of its decline acclerates.

July 27th: Bulls stepped up to the plate, driving the markets up on heavier volume. The question will be now, can it stick? The last time the markets attempted this on July 20th the markets reversed on huge volume the next day. It will be important to see some follow through tomorrow (higher close on increased volume), any sniff of reversal will likely bring a test of yesterdays lows. As of today, the NASDAQ completed its measured move to 1,830 and should not break below this support. The NASDAQ 100 regained triple bottom support, although yesterday lows should be viewed as a place for stops. The Sox did complete a test of support on today's bullish hammer (compared to yesterday's test on a neutral spinning top). The bounce in the Russell 2000 looked a little excessive to count as a bullish reversal, although the Dow finished nicely, closing on higher volume above the highs of last Thursday, inside the body of last Wednesday's big reversal. The S&P made similiar inroads, but remained below Thursday's highs/Friday's open.

Precious metal stocks found some traction. Of the stocks to recover which feature on my list, these look best positioned to gain. Bullish hammers on higher volume abound - gold and silver mining stocks should be good for a 3-5 day bounce at this point. Gold stocks look better than silver stocks, the latter are not as oversold, while bullish divergences between the MACD trigger line and price in gold mining stocks (compare now to May) suggest good rallies in these stocks over the next few days could build into a stronger bounce.

Stocks, in general, rallied - some like TASR, made substantial gains. Unfortunately, volume in many of these moves was light and/or below average. Stocks on my public list that did make heavy volume moves did so to the downside. INTC broke upside of its pennant, although the lack lustre volume and neutral spinning top does not suggest bull strength. SIRI did likewise on modest volume, it closed at $2.51, a break of $2.62 would confirm the break of the pennant. IMAX continued to suffer, releasing disappointing earnings after hours that will likely result in a greater hit tomorrow. NT shed 15% as it warned on lower profit margins. The stock sits a few cents above $3.40 support, next test is May lows. LU did test May lows on average volume. It is on its fifth day of declines, but retains a bullish divergence in the MACD. Buying a break of todays highs ($3.14) would be an aggressive long play for a 10% price objective. SUNW is in a similiar position to LU, testing May lows. Watch for a bounce over the coming days. AIRN gained over 12% as its started a low volume relief bounce. CDIS is in the process of starting its relief bounce, ending the day on a bullish harami. HURC attempted to stem yesterday's loses, ending the day on a bullish inside day but on low volume. A relief bounce to $10.70 is best outcome, but odds don't look favorable. IVAN's arterial losses may have been stemmed by todays bullish harami-doji. Look for rally to $1.50 and likely beyond, it closed today at $1.30. LIOX jumped 16.59% with heavy volume on analyst coverage, it bounced off resistance of its declining channel, but a break of this could see this fly - $7.75 is the pivot price to watch/buy, it closed today at $7.17. OMNI shares lost over 15%, confirming a downside break of recent price congestion (triangle). There was no stock related news to account for today's fall. MOBL short two day bounce looks to have ended as it finished the day on bearish cloud cover.

Some negative action was apparent in the breakout candidates. Penny stock, CSII which featured on July 8th hits its stop, ending the day on a bullish hammer. Yesterday's pick CVH ended on a bearish inside day on higher volume. Penny stock, PAII, which featured on July 23rd was whipped out on todays intraday trading.

July 26th: Another day for the bears to twist the screw. The NASDAQ reached a measured move target of 1,830 - but there was little to suggest the decline has completed. Todays spinning top does not favor the bulls or bears. The NASDAQ 100 has likely negated the triple bottom as it closed below March support, technicals (MACD and slow stochs) do not suggest the selling is done. Some heart may be taken from the Sox index which has tested support, but todays neutral spinning top does not give the bulls an advantage, a loss of support would not be surprising - technicals remain oversold although the MACD histogram is attempting a bullish divergence. The Dow ended on a bullish harami - volume has declined since last weeks spike, another hint the selling has completed? New longs should set stops on a loss of 9,913. The S&P is still above support of a (bullish) reversal head-and-shoulder pattern, but again - today's candlestick does not suggest the downside is complete. Unfortunately, the Russell 2000 is building on its weakness, losing May support.

Precious metal stocks had another ugly day, gold mining stocks are testing May lows, silver stocks are slightly better off - but likely to follow gold stocks down to (and below) May lows. Few stocks gained, and those that did, did so on weakness. ATAC bounced after 4-days of declines - but the bounce looks to be a relief rally and a retest of $14.29 seems likely. SLPH moved above $3 resistance, but the large red candlestick from earlier in July remains dominant until $4.00 is breached. AIRN looks primed for a relief bounce of its own, watch for move to $4.00 (halfway along the body of the big red candlestick). LIOX attempted to hold the support line of its declining channel on higher volume, but price action ended neutral (spinning top). One of Friday's positives, DHB, reversed to close below Friday's open. Look for test of Thursday lows ($13.96). Breakout play, VLTS, is an island amongst a sea of red, it closed at a new 52-week high. Similiarly, penny stock, CTKH gained 10% on massive volume, although there was no news released by the company to account for the move. Penny stock, MOBL, added 13.21% on light volume, following through on Friday's bullish piercing pattern. FXEN broke below its gently rising price channel on low volume. SMTS closed at new lows for its decline, closing outside of a declining channel. TASR continued to collapse - closing down 14.53% on safety concerns - typical in bear declines, such concerns were made apparent before the stock reached its 52-week high, now that fear rules all the negative aspects of the stock are amplified. IMAX caved, losing 8.43% following form a prior low volume breakdown of $5.16 support. XYBR broke its rising bear flag. HURC didn't gap down as expected, but still managed to lose 12.81% - further loses look probable here. PRTL shed over 10% on higher volume, earnings to be released on July 29th. Look for price move to lower support (green hashed line/blue box). Swing traders might find some volume in INTC - the pennant is likely to breakdown, but watch for a counter move up to close the breakdown gap. A similiar pattern is developing in SIRI.

Not surprisingly, there were a few more breakout candidate failures. ATPG which featured first on July 15th and again on July 20th hit its stop on a rapid fall during the open. IAG featured on July 8th added to prior weakness, negating the breakout. TUNE which featured on June 15th lost its stop after an initial move to $4.90 highs failed to reach price objectives.

DD as always, DJF

July 23rd: The weakness of yesterday's bounce was underscored by todays selling. The volatility index, $VXN, lead the reversal, breaking upside from its tight consolidation. The upswing in fear sent markets scrambling to new lows. The potential (bullish) reversal head-and-shoulder pattern in the NASDAQ is hanging on by a thread, as is a triple bottom in the NASDAQ 100. The Dow eased on lighter volume, but closed above the lows of yesterday's hammer - new support is defined by todays lows of 9,931 (the bullish hammer remains dominant as a reversal signal - if only just). However, the Russell 2000 negated yesterday's potential reversal hammer by closing beneath its lows. The Philly Sox reversed lower, but still has to test the declining support line. No bottom in the tech indices will be in place until this happens. The only bullish aspect about today was the lighter volume - but its small comfort if holding long positions. Realistically, a reversal at this point would require a retest of current lows to confirm the completion of the selling - so potential longs best wait on the sidelines unless you intend to trade a 2-3 day bounce (and so far, bounces have fallen flat on their face).

Not surprisingly, there was little bullish action in featured stocks. Gold lost support of its rising channel, further pressurising weak mining stocks. Silver prices continue to hold above support, although the metals strength was not evident in silver mining stock prices (CDE, SSRI, PAAS, and SIL). CMN attempted to hold support on lighter volume, ending the day on a bullish inside day - but given recent attempts at this from the like of TASR it is unlikely to succeed. Yesterday's big gainer, QCOM, stumbled in its test of resistance. Today's bearish inside day will give solace to the shorts - it appears $73 resistance is one step too far for the stock, watch for a double top - confirmed on a loss of $67.40, it closed today at $70.40. SIRI looks to be forming a bearish pennant - swing traders can play the break of support/resistance. Based on the prior trend and the current market, the break should be to the downside. CDIS acclerated its loss to the downside, closing below $30 on increasing technical weakness - short the next bounce if it comes. CYBS appears to be forming a bearish wedge, watch this for a break and test of $4.54, it closed today at $5.51. FXEN completed a bearish "three black crow" series of candles, but managed to stay above support of a (bearish) rising channel. HURC edged below its recent sideways congestion, watch for a gap down on Monday. Yesterday's supposed bullish piercing pattern in PKTR was shattered today as the stock gapped down, losing 41% on its earnings miss. The selling did not relent in SSTI as its (bullish) inverse hammer was blown out of the water at todays open, the stock closed down an additional 6.53%.

One of the few bright spots today was DHB, although it continues to trade in a sloppy sideways action below resistance. Recent price and volume flyer, MOBL, consolidated its recent two-day declines, closing with a bullish hammer on low volume. Watch for bounce back to resistance


July 22nd: Markets may have rallied, but a large number of individual stocks failed to recover from yesterday's selling, indeed, a number of new stocks started to break down. Attempted bullish reversals in the NASDAQ, Dow, and S&P lacked the price reversal, or volume to suggest a bottom was in place. The NASDAQ 100 made the strongest price reversal, but fell a few points shy of completing a bullish piercing pattern as volume was well below yesterdays. The doji/hammer in the Russell 2000 and Dow will require a higher open and stronger close to affirm these candlesticks as a bottom which would hold on a retest. Weaker after hours trading from MSFT following it earnings release will likely see markets open weaker tomorrow. The volatility index, $VXN, looks primed for a big leap up, which will likely be triggered by a sell off similar to yesterdays.

Weakness was most apparent in the former breakout stocks. JSDA looks set for a 3-4 week reversal as it ended on a bearish (black) inverse hammer following its lengthy rally. VLTS was the only stock in this list to gain on a bullish engulfing pattern. Has WLDA bottomed with its hammer? Large cap, QCOM, reversed yesterdays losses on heavier volume on the release of its earnings - the rally was driven in part by short covering. ADNW may have bottomed as it ended the day on a bullish hammer on higher volume, having bouncing off support intraday. It released earnings of 0.05 (EPS) after hours today. Reversal patterns on higher volume were noted in OPSW, PKTR, and SNIC, although the latter remains below support of its rising channel.

Strong earnings were not the medicine which drove VISG higher in after hours trading yesterday, the rights to add 7.5m common stock to the float surpressing the enthusiasm. However, it didn't suffer the fate of MAGS as it broke $16.10 support on light volume. Should MAGS follow the trend of VISG, it will undercut it's $12.35 support with ease. Earnings are to be released on Monday. IPIX was less affected by the selling. SSPI adopted a similar price pattern, the start of a potential crash in the price? There was no news to account for the decline. AIRN followed through to the downside on huge volume. ERES lost 15% after its earnings release. IVAN slipped outside support of its declining channel, extending a sequence of declines. The love affair with Chinese (related) stocks fades into the distance. At the end of IVAN's decline should come a hammer as appeared in LIOX today - have we seen a bottom here? SSTI suffered a similar fate as it released earnings but guided lower - today may mark a capitulation, but further downside on low volume would not be surprising in this market. TASR failed to hold prior support, breaking down on light volume, next target for support is $23.76, it ended today at $29.28.

On the breakout front there were further failures - even more so than yesterday. BEIQ, which featured on May 28th hit its stop. CEDC, which featured on June 22nd hit its stop in the second day of heavy volume declines. Bulletin board play, DTMG, featured on July 9th, was also stopped out. Also reversing its breakout was PKG, which recently featured on July 21st. Closing on a bullish hammer, but taking out its stop was TSG which featured on June 16th. UNWR, which featured on June 3rd has started to roll over - hitting its stop.

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July 21st: Earnings fear raised it's head again as the markets tumbled. MSFT news was a buy the rumor, sell the news event. All markets reversed yesterday's gains on higher volume. To me, it looks like the start of a capitulation - a capitulation that is occurring within the confines of a larger consolidation. if we can maintain the broad down channel this could be the wash out needed. The NASDAQ, NASDAQ 100, Dow, Russell 2000, and S&P all flashed similar patterns. The Philly Sox looks better positioned to test the channel support line (which it had not done previously). Precious metal stocks did not benefit from the decline as the dollar rallied; gold eased below $400, and silver dropped to $6.41, but the latter remained above $6.20 support. Indeed, many mining stocks look attractive short opportunities as technical breakdowns abound. May lows are unlikely to hold in many of these stocks, CDE, is one stock which has already undercut these lows.

Too many losers on the public stocklist to mention, but there was 1 winner; JSDA continued its earlier rally, moving to new 52-week highs on above average volume. Of stocks that could have performed worse, but didn't were LEXR, NT, and DHB. LEXR could hardly get worse, volume has dropped off considerably since all the negative news was released. Large cap, NT, maintains support while many around fail, while DHB does its best to maintain an ascending triangle, although todays bearish engulfing pattern switches the mood in the bears favor. HURC continues to hang on, although it remains below resistance. MAGS holds a tight trading range on low volume. OPSW continues to build support - its losses today were light relative to other beat down stocks. PRTL consolidation has remained in a very tight range on low volume. If it can survive the sell off it should be a decent value play. TASR holds support with a bullish inside day - although the light volume does not suggest the bulls are in control.

On the breakout front. GHCI, which featured on June 30th hit its stop. WHAI, which featured on June 15th also clipped its stop.

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July 20th: Alan Greenspan soothed the markets, although given his prior testimony the "news" could hardly have been unexpected. The NASDAQ gained off yesterday's bullish hammer, but volume was still shy of a follow through (below yesterdays volume) - so far this looks to be a relief rally - but things can chang very quickly. A bullish follow through will occur when 1,926 is breached on higher volume, but the highs of the big red candlestick will mark a potential "falling three methods" on the rally from here. The Dow reversed yesterdays loses - but volume was considerably lighter than yesterday. Large resistance remains above. The NASDAQ 100 locked in a similar pattern to the NASDAQ with volume below average for a bullish follow through. Although the tech indices have suffered the most in recent days, there is some hope developing in the secondary indices. The $BPCOMPQ is showing a strong bullish divergence in the MACD, with the trigger line just shy of the zero mid-line, a bullish divergence in the RSI, and to a lesser degree in slow stochastics is apparent too. Prior bullish divergences in the MACD have been maintained in the $NAA50 and the $NASI also. The Russell 2000 had the strongest day - ending above the 200-day SMA, but just below the 50-day SMA. Further gains tomorrow should catapult this higher - this looks to be at a cusp of its next big move. Watch the MACD for crossover in this index, although slow stochastics continued down (a bearish marker to today's rally) and the ADX line is showing a stronger downtrend. Similarly, the Philly Sox is also showing an increasing strength downtrend, although the index consolidated its recent loses, it will take a big one day gain to jolt the bears out of control. The S&P is closest to mapping the March rebound, closing above the last few days indecision. Technicals in this index remain reasonably strong and this looks best placed to lead the next rally (bringing the tech indices with it).

Precious metal stocks are likely to suffer the most as money rotates from the base metal into stocks. Both gold and silver prices eased which had a correspondingly negative impact on precious metal stocks.

Given the strength of today's markets, stocks had a good day. One good day does not reverse weeks of weakness but keep an eye out for potential bullish follow throughs. From the breakout page (page 3), CMN attempted to regain yesterday's loses - volume came in lighter than yesterday so the bears still have control here. AXCA finished on a bullish engulfing pattern on higher volume, but remains below $20.75 resistance on continued technical weakness. HYC traded up slightly after yesterday's big gains, but failed to break $8 resistance. IDEV gained on light volume following yesterday's bullish reversal - resistance is some distance away at $6.65, but there will be supply issues to chew through on the way up, it closed at $5.71. GIGM held lower channel support and is mapping a bullish divergence with its MACD. IMAX rallied on modest volume, but remains caught below $5.45 support and trendline resistance. VISG begun a relief bounce, gaining 12.4% on light volume - it releases earnings on Thursday. SIRI gained in a similar fashion - closing below $2.63 resistance. SUNW managed to follow through on heavier gains yesterday. Earnings were released after hours, but stock price appears to be holding. Interestingly, the QQQs (and the SPYs) outperformed the parent index - rallying on higher volume to the point of negating a "falling three methods" evident in the NASDAQ and NASDAQ 100.

Of the member picks, OPSW looks to have found support on today's hammer and yesterday's long lower shadow - any bounce will be a relief bounce unless volume rises to the upside. MNG lost support as it falls in sympathy with precious metal stocks. REDF gave up support, but volume was light and the day ended on a bullish inverse hammer - bulls are not knocked out here yet. TASR shed 14% after the release of its earnings and continued concerns over its safety. While SSTI showed a second day of accumulation. Given where it lies close to support, there is an aggressive buy here - earnings are released tomorrow. On the penny share front, MOBL and ONT were the real winners - the latter looks set for a test of $1.24 while the former is making strong inroads to $0.295 resistance.

On the breakout front. CRZO, which featured on June 18th hit its stop. While ITRI, which featured on June 7th gapped below is stop price on a weak earnings report and downgrade.

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July 19th: The tech markets attempted a mid-afternoon rally, but were beat down at the close. The NASDAQ ended the day on a bullish hammer on above average volume. The NASDAQ 100 ended the day on a more indecisive (ie. neutral) spinning top. The S&P also closed in an indecisive manner, although the decline is showing some similiarities to that of March and may be forming a bullish reversal H-a-S pattern. The Dow took a hit on lower volume as 3M earnings disappointed the markets, further downside looks likely here as it plays catch-up to the tech indices. The Russell 2000 put in a bullish doji in an attempt to put a bottom in the small cap index. The index still looks bad in the intermediate trend, but over the next 2-3 days we may see some strength in this area. The Philly Sox still has yet to test the declining support trendline, so there may a couple more days of weakness in tech stocks to shake the weak hands here.

From my public stockchart.com list, precious metal stocks were weaker as the underlying base metal prices reversed some of Friday's gains. Stocks like HL and BGO are forming consolidation triangles that are likely to break in the direction of the larger (3.5-month) trend ie. down. DROOY did just that. HL releases earnings on Aug 4th. Silver stocks which had performed well over the last month look a little toppy in the short term. PAAS is on course to confirm a double top (a move below $14.50 confirms) and SSRI ended on a large bearish engulfing pattern. CMN lost support after the July 9th reversal - a good time to take profits, or step aside, as next support lies at $23.00, it closed at $24.38. HYC jumped on huge volume, although it closed below $8.00 resistance, it traded at $8.56 after hours but there is no news to account for the move. JSDA began a low volume pullback off $4.00 resistance, watch volume on the decline - it shouldn't increase during a bullish pullback. VLTS ended on a bearish inverse hammer - the declining volume in the uptrend is another bearish signal. Take profits on loss of todays lows. IMAX broke down to a support level and sits shy of a drop to $4.04. Much maligned IDEV garnerned some support with a large hammer on above average volume - look for move to $6.00, the stock closed today at $5.24. LU broke support and completed a bearish "three black crows" sequence. Short positions are favored here. A similar pattern appeared in JDSU. There was no relief for SIRI, although volume picked up which suggests a capitulation should occur soon. On balance volume in QCOM moved to a new 6-month low - is this the start of its broad selloff? So far it is managed to stay close to former resistance of $70. INTC provided some support with a bullish harami - aggressive longs could take a position here with a stop on a loss of todays lows, while SUNW rallied on above average volume in the run up to its earnings annoucement.

Of the member picks, AIRN lost $4.50 support on average volume, losing 4.3% to close at $4.45, completing a bearish "M" reversal. ADNW lost another 7.89% following on from Fridays 6.94% loss. CYBS crashed another 14.77%, sending it hurtling towards March lows killing the entire April rally - other than earnings last week, there was no news to account for today's slide. DHB remains in a bearish flag consolidation, although the possibility of a bullish ascending triangle has not been negated. Trade break of triangle. ERES closed below the lows of last Thursdays' breakout - trapping the bulls who bought the breakout - technicals continue to weaken - move to the sidelines or sell. HURC looks ready to take the next step down - todays spinning top implies indecision, although the bulls are probably more scared here. Security issues had a bad day as TASR and IPIX lost support and VISG continues to slide. MAGS sits just about support but is likely to fall in sympathy. TASR suffered from a NY Times story on their weapons safety. The stock releases earnings tomorrow. VISG now lies at its 200-day MA. REDF and GIGM suffered from overall weakness in Asian internet stocks, while SNIC dipped below support on light volume. Penny stock, MOBL, was the big winner today, adding 20% on news of acquisition. The stock had gained 21% on Friday. Fellow penny stock, ECGI and DSLN bounced off support while gains were also found in pink sheet plays CTKH and CMKX.

More suffering on the breakout front. Recently featured WLDA hit its stop after 3 weeks of wild trading. Prices are likely to drift back to $3.00 before buyers start sniffing again. The stock featured on July 7th.

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July 16th: Weak consumer strength and rising oil prices added to the general tech sickness in the markets. No market escaped the selling wrath. Volume picked up the downside, and a number of prior bullish divergences in technicals were broken. Again, the NASDAQ and NASDAQ 100 suffered the most, edging closer to May lows. The prior breakout gap in the NASDAQ closed and a measured move to 1,830 is favored here. The NASDAQ 100 edged closer to a similar move, but still retains its breakout gap. The Philly Sox is the lead barometer for the tech markets and it remains ugly - a support level is approaching, namely the lower trendline of a declining channel - will this provide the impetus for a bounce? The Russell 2000 took another step down, ending its attempt to hold the line, similarly the S&P acclerated its loses, although the technicals for this index remain relatively strong (compared to the tech indices). The Dow remained the strongest of the indices, closing down, but ending on a bullish inverse hammer. Will blue chip stocks lead the next rally? Flight to quality.

From my public stockchart.com list, silver stocks were the big winners today as silver prices continued to rise. PAAS completed a pullback and rallied on above average volume while SIL broke to new 3-month highs. CSCO was one tech stock that had endured the sell off relatively unscathed - but not today. It lost $22 support on average volume, closing at $21.58. Stocks in general took a beating, mostly on light volume which suggests further selling is needed to wash out the weak hands, these included IDEV, VISG, GIGM, SIRI, SUNW, AIRN, . One stock that may have completed its selling is LEXR. All the bad news is out and todays volume was not the surge that yesterdays was. The stock has a 66.8m float, half of which is in institutional hands (although that figure will likely be revised lower), in the last three weeks some 50m shares have changed hands while the bullish divergence in MACD holds. One to watch. QCOM confirmed its breakout failure by testing, but not closing above resistance. MACD and slow stochs made new near term lows while on balance volume is on course for a new 6-month low. ADNW dropped 6.94% on heavy volume confirming its prior breakdown, the stock released earnings today. Another stock suffering after its earnings report was CYBS, down 19.86%. ERES reversed yesterdays breakout on higher volume, watch for weakness next week. Bears also kept FXEN in check, volume remained light. LIOX lost support of a triple bottom, ending the week with "three black crows", look for a continuation of the downside here. XYBR followed through on prior weakness, shedding 4.26% on increasing volume, but moving below $1.43 support. Penny stock, DSLN, fell victim to the pump-and-dump, closing a penny above lower support of $0.28. Rough days were also had by penny stocks, ECGI and GTEL, although MOBL staged a breakout to close up 21% to end the day at $0.18.

IVAN's attempted bounce was weak - ending the day on a bearish black candlestick. Look for a further test of the support line (should this be in fact support?). Prior market victims OPSW and SNIC managed to hold their recent lows, watch for a bounce in these stocks. TASR looks an excellent swing trade (bullish pressure), with tight trading on light volume.

Further breakout plays were stopped out. Recently featured MYE, reversed its breakout on reports of illegal practices, it appeared on the list on July 15th. HYC, featured on June 18th hit its stop after reversing a breakout the previous week. Penny breakout, VEXP, clipped its stop following a couple of days of sideways trading. It featured on July 7th. SMTS, which was one of the first breakouts to feature on May 25th, hit its stop after failing to reach its price target from a post-breakout rally. ATEA, featured on June 2nd gave up its stop in late day trading. IDSY, which also featured on June 2nd hit its stop of $10.79 having previously rallied to highs of $16.18. One stock, IST, did manage to reach its price target for a 26.72% gain, it was the first breakout featured on the list on May 24th.

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July 15th: Earnings were again the cause of the market malaise, yesterday's positive releases by Apple and Sandisk countered by anticipated earnings from IBM, as well as disappointing earnings from Citigroup and Nokia. The markets effectively treaded water, but made little effort to move upwards. Volume returned to normal following Intel's trading. The NASDAQ and NASDAQ 100 finished just above yesterdays lows, but other markets were less fortunate and this will likely impact the tech indices tomorrow. The Dow closed below prior lows and the 10,200 support level, but has traded in the upper end of its range since the start of the market correction in July. The S&P similarly failed to hold recent support, completing (ableit late) on a "falling three methods" trading sequence, look for lower prices tomorrow. The Philly Sox index treaded water after its breakdown, but this will likely continue downwards. The Russell 2000 index was the only bright spot for the day, remaining in a sideways pattern following its breakdown from a rising channel last week.

Gold stocks benefitted from market worries, stemming some the weakness in the sector yesterday. GSS traded flat for the day, failing to follow through on yesterdays slide. While, KGC and HL held support lines. The jump in silver prices has yet to be reflected in silver stock prices, but stocks like PAAS continue to map bullish consolidations (falling prices on declining volume). Look for a continuation of the nascent rallies in SSRI and SIL. Yesterdays little uptick in security stocks reversed to more intent selling today; VISG lost $7 support, while DHB ended the day on bearish cloud cover two-day combination. IDEV lost $5.74 support and fell outside of a potential bullish consolidation. While LEXR benefitted from the SNDK news, it failed to hold early gains in anticipation of its own earnings. Large caps similarly suffered, INTC adding to its weakness, but the likes of JDSU, LU, SUNW and QCOM all traded down, the latter negating last months breakout. Not surprsingly, SIRI's attempt to hang on took a stamping, but recent lows held. The big losers on the day were the QQQ, SPY, and DIA's, each of these broke near term support and sent them packing towards May lows.

Of the member picks, ERES was one of the better stocks today, rising to new highs on above average volume, while FXEN continued to impress, adding 1.17% as part of a small rally. HURC's up and down sequence again encountered resistance and could still go either way. IVAN reached a lower support trendline, but the lack of volume does not suggest it will hold. DSLN suffered another round of profit taking, losing $0.35 support, while GZFX endured a similar fate after its rapid gains yesterday.

One of the former frontpage breakouts, ATPG, made a second breakout move today. Details listed on the message board.

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July 14th: Todays huge volume in the markets reflected the morning-after-the-night before earnings release of INTC. But this should not disguise what was an otherwise good day for the markets. The expectation was for horror, but once the markets digested the INTC report, value players stepped in to drive a reversal. The markets eventually gave back these gains, but failed to close below support as defined by this morning lows. Favorable afterhours reports from AAPL and SNDK should give the markets a boost tomorrow. The Dow was caught in indecision, the "spinning top" marking the struggle between bulls and bears. The NASDAQ and NASDAQ 100 ended on inverse hammers - a bullish reversal signal, strengthened by their appearance within a major support zone defined by May trading. The S&P fell just shy of completing a "falling three methods" combination, closer higher than the lows of the first bearish candle. If there is no follow through (down) tomorrow the formation will fail. Unfortunately, the Philly Sox index was the real loser today, crumbling through support - it will be interesting to see how the market reacts to this critical (bearish) turn. Futures were up as of 19:30 ET.

Stocks to watch tomorrow include LEXR. Its competitor, SNDK, released strong earnings on the back of digital camera flash cards. LEXR releases its own earnings tomorrow - there is a bullish divergence in MACD that should push to new highs, as well as two breakout price gaps to close. Recent breakout play, CMN, suffered high volume selling, the large bearish engulfing pattern is an ominous sign for the stock. Likely to pullback, but volume should be closer to average on moves to the downside - today was as good as reason as any to take profits off the table (or simply get out!). As noted below, SLPH took a beating hitting its stop price, next support for the stock lies at $2.35, it closed today at $2.86. Security related issues had a good day. VISG continued to hold February support, while MAGS and IPIX ticked to the upside. DHB featured strongly on the back of a $37m contract, breaking important $14.75 resistance, watch for test of $16.45 (52-week high), it closed today at $15.73. JDSU traded up as it announced plans to report earnings on July 28th. SIRI dug its nails into support - today counts as a bullish inside day, although any bounce will likely be a relief bounce before the stock can put in a firm bottom (on a retest of yesterdays lows - likely to take 2-4 weeks). SUNW's attempt to hold on failed as it lost 2.56% on light volume, negating its own bullish inside day from yesterday.

Penny stock, DSLN, may have had its day as it ended with a bearish cloud cover sequence on massive volume. A pullback to $0.35 support looks set at minimum, it closed today at $0.39. GZFX did the opposite, and rallied after yesterday's capitulation. The jump looks too much, too fast, so watch for sideways action to consolidate the gain.

A little weakness crept into gold stocks in the light of yesterdays reversal of gold prices. GSS was the biggest loser on the list, dropping over 5% on light volume. KGC sits at support of its former triangle, while HL reversed its own break of resistance and looks ready to test $5.41, it closed today at $5.99.

As for the breakout plays, SLPH featured on July 7th reversed on massive volume - there was no news item to spark the selloff, but no doubt something is in the pipeline. If not stopped out, sell on the "dead-cat-bounce". AKAM featured on June 28th nicked its stop after a couple of weeks of weakness, it ended today on a spinning top, so neither bull nor bear are in control. CADA clipped its stop after weeks of sideways trading, it ended on a bullish engulfing pattern but its technicals had weakened considerable since it featured on May 27th. The June 17th candidate, PPDI, crashed through its stop price prior to its earnings release. On the flip side, JSDA, featured on June 29th, reached its price target while successfully managing a third breakout, a modest 21% gain, more upside looks likely here.

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July 13th: The market traded on the basis of anticipated weak INTC earnings and got what it wanted. Tomorrow should see a gap down in the markets, the question is how far down will markets open. The Dow was the most bullish index and treaded water on very light volume. The NASDAQ ended today on a "bearish cloud cover" for a fifth distribution day. The NASDAQ 100 behaved similarly poorly, losing support of the MACD trigger line bullish divergence. The Philly Sox looks set to lose support tomorrow, while the S&P will likely complete its "falling three methods" bearish combination tomorrow, expected to trade near Thursday's lows.

It was left to the penny stocks to make the gains. The big winner today was NT, adding 12% on huge volume ending its recent pullback. The company announced plans to slash costs. Penny stock, DSLN, rallied 20% following on from its recent huge buying volume. GTEL moved over resistance, but ended the day on a (bearish) inverse hammer - watch closely for further weakness. ONEI finished strongly on heavier volume, the pullback from $1.74 looks complete - it ended today at $1.40. Gold prices reversed a recent near term break of $405, which had minimal impact on gold stocks. Gold remains within a rising price channel and is bullish for the intermediate term. Look for a bounce for the support trendline. By in large, the featured breakout plays had a good day, which in light of a terrible market should be viewed as bullish. Also in this category is AES. FXEN continued to base, and todays little rally will give hope to the bulls that the consolidation period is close to ending. ERES pulled back from weakness last week to end the last 3 days on a bulllish "three white soldiers" sequence, it lies a couple of dollars away from new 52-week highs.

There were many victims to the day, other than INTC. VISG continued to drip losses and now sits at support of February highs. SIRI is now in freefall, likewise IVAN has entered into rapid capitulation decline, the stock needs volume to complete the wash-out. Continued weakness was present in OPSW and SNIC. Although LU rallied higher on heavier volume, negating yesterday's tip of the hat towards the bears - however, todays doji marks indecision, so bulls are not entirely convinced by the move. HURC's little bounce looks complete - todays bearish engulfing pattern favors short positions at this point.

As for the breakout plays, EMED joined the list of failures as it shed 11.29% on heavier volume, it was one of the first stocks to feature on May 24th.

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July 12th: A bullish end to the day as markets rallied in afternoon trading, but the lack of volume suggests little conviction to the buying. The Dow managed to inch above resistance of its narrow channel, but in the absence of any real volume its hard to say if this is the start of something better. The NASDAQ bounced as prices dipped to levels last traded during the May congestion period (highlighted in purple). The NASDAQ 100 ended the day on a bullish hammer, in a price and volume pattern similar to that of May 10th. The Philly Sox remained above support while the Russell 2000 attempted to gain traction after its rising channel breakdown. Although the S&P has the makings of a "falling three methods" bearish continuation sequence; look for another small rally tommorrow to end the day below Thursday's open, then a drop on Wednesday to take prices back to Thursday's lows. A break of last Thursday's highs negates the formation.

Individual stocks had quiet days, although there were a few exceptions. AAC continued its downward trend - building on a prior "three black crow" candlestick combination. The breakdown of the triangle should get worse before we see some form of capitulation. SIRI continued its recent descent from its own "three black crows", edging closer to 6-month support. Volume remains below average which suggests insufficient fear to force a capitulation. LU prior sequence of 4 (bullish) dojis ended today as prices closed lower, undercutting support of this bullish sequence. Watch for lower prices tomorrow. SUNW failed to regain prior support (now resistance) as the stock shed 2.5%, threatening to acclerate its own recent downtrend. CYBS failed to bulid from Friday's inside day, losing 6.17% to put it on course to test $6.25 support (last hope for the bulls). OPSW was another stock to suffer a similar fate - bears once again grabbing this by the scruff of the neck as it failed to build from Friday's attempted rally. SMTS returned to weakness, and may form a bearish descending triangle as it lost a prior breakout for the second time. The stock lost 8.93% to close at $13.25, the original breakout occured on a move past $14.05.

It was left to the penny stocks to put on some show of force. DSLN rallied on huge volume, it sits just shy of a break of $0.35 resistance. Targets of $0.60 and $0.76 look within range after the prior week's accumulation. ONT was another winner, closing a previous breakdown gap and rallying higher on another surge of volume. Next resistance for this is at $1.24, it closed today at $1.01. GTEL was another penny stock that sits just shy of a break of resistance but with an increase in upside volume. It closed today at $0.116, up 16% on double average volume. On the flip side, GZFX lost 7.45% to end the day below May support, look to sell the next bounce.

Today's frontpage breakout play, CZN, should be watched closely as Moody's cut its ratings to junk in an after hours news release. There were two more failures from the breakout plays; PTIE, featured on June 7th hit its stop today, as did last weeks PDC, the latter on an 8K filed to offer 4 million additional common stock.

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July 9th: The markets struggled to regain prior intermediate support levels, testing them, but failing to close above them - a bearish confirmation signal. The most positive action was seen in the Dow as it closed above 10,200, but additionally formed a narrow declining consolidation channel on declining volume - this looks set for an upside breakout. The best hope for the bulls is a development similar to that of early March when the markets consolidated for a few days before gapping down to produce bullish island reversals. I have marked in NASDAQ 100 where I suspect such a play may occur. Note the prior tests of the bullish divergence in the MACD trigger line, look for a bounce in the index from the next test of this line. Similar plays (but with a bit more room to fall in the MACD, and slow stochastic technicals) exists in the NASDAQ and the S&P. The Philly Sox climbed further away from support, but still has a long way to go to escape trouble.

In general, the markets had a quiet day - recovering from the shock of a nasty week of trading. HL followed through on yesterdays breakout on modest volume. Strong consolidation action was found in GSS and BGO, ending the day on bullish hammers or dojis on low volume. CMN suffered from its recent success, shedding 8% on heavy volume. IDEV slowed its sharp descent consolidating into a declining channel on low volume - watch for upside break into fib retracements - an aggressive buy here, place stops just outside the support line. LEXR is attempting a relief bounce on above average volume, look for resistance at $7.30, it closed today at $6.70. LEXR releases its earnings on July 15th. LU posted four dojis in a row - likely to move higher from here, but trading a break of the high/lows is an excellent swing trade. A stock to watch for an upcoming rally is PRTL, buy when the bullish divergence in the MACD trigger line is tested, or there is a close over a prior 2-day high. Another stock set for a bounce at current prices is SNIC. It looks to have tested support of a slow rising channel - set stops on loss of channel support.

AXCA featured on June 22nd hit its stop. Although the majority of recent breakouts have been a disappointment, two breakouts managed to reappear again; JSDA which featured on June 29th, and VLTS, which featured on June 16th managed new breakouts - I had suggested yesterday JSDA was on course to hit its prior stop, but it received a big boost prior to market opening with analyst coverage initiated on the stock this morning.

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July 8th: The markets broke through intermediate support levels. The next support levels on the way down are 1,932 for the NASDAQ, 10,050 for the Dow, and 1,103 for the S&P. The Philly Sox sits resisted falling through the 6-month descending triangle, probably the only bullish thing to say about today. While the Russell 2000 was the big loser, confirming the breakdown of the rising channel. Support for this index rests at 557 (weak support) and 530, it ended today at 560. Look for small cap stocks to take a beating over the coming days as investors hide amongst precious metal stocks and larger caps.

Precious metal stocks were the chief winners today. Gold broke to a new 3-month high, with silver marking a similar strong move. Of the mining stocks, HL and PAAS were the chief winners, the former making a break of near term resistance, the later adding to yesterdays gains. The real losers today were stocks featured on my breakout play list; 8 stocks hit their stops as profit taking swept through the smaller caps. Todays casualties were RSSYF, VSR, ZQK, LRW, ACTU, HLEX, ASPM, and ATAC. It doesn't take much for a good stock to turn bad very quickly, particularly in a sloppy market. Stocks losing their breakout within 2 weeks make decent short candidates as bulls get 'trapped' by the move above, then below nearest resistance (resistance in most cases been the 52-week high, or near term high, before the breakout). In lieu of this thinking, JDSA and HYC look better short candidates at this point (neither have hit their stop price). The problem using recent upside breakouts as shorting candidates was the (slight) bullish bias in the markets, making counter plays more risky - although it could be reasonably argued that neither long or short plays are favored until January highs or March lows are breached. Some stocks suffered from overly ambitious target prices, the breakout rally reversing on heavy volume prior to the target been reached - trailing stops should protect against reversals in this regard - for the purposes of my monitoring I stick with fixed stops.

There were few winners on my stockchart list; the July 7th front page breakout candidate CMN added 6.22% on heavy volume to close at $26.11, look for resistance to kick in at psychological resistance of $30.00. Penny stock, ONT continued to benefit from recent accumulation, breaking important trendline resistance, and is just shy of closing its breakdown gap. Sub-penny stock, QBID, started a relief rally on decent volume, gaining 32.76% - although I suspect resistance will kick this back down once $0.01 is hit. SSPI lept 12.77% but ended on a bearish black candlestick. There might be some low volume selling to follow, but recent price action and todays volume suggests further upside is to come. Aggressive short players may want totake a look at DHB. There is a big breakout gap that is sucking prices towards it, slow stochastics just dipped below near term support, and the stock topped on a bearish evening star. Security issues, IPIX and MAGS benefitted from afternoon rallies, closing strongly on heavy volume.

Amongst the ugly (which were many), CYBS was one stock to take it particularly hard, its barely above support of $7.24 having closed today at $7.31 on light volume. ERES will be another stock to watch closely, as it took a step back towards its former resistance (now support). FIX fell as its low volume bounce to $7.00 succumbed to fresh selling. HURC closed its breakaway gap, but ended the day on an indecisive "spinning top" candlestick - this could go either way tomorrow, although I suspect we will see an inside day. OPSW took a step into oblivion, losing 6-month support - the next support level can be found at $5.50 and then its a long way down from there (point-n-figure charts have a price target of $3.00). XYBR made a similar drop off its recent consolidation, shedding 10.37% - it sits just below support ($1.50) and if it were to follow through to the downside would test $1.10, it closed today at $1.47

On a final note, when you visit my stockchart public list, please click the "Vote for It!" at the end of the page - the list is slipping southwards, voting isthe best way to show the list is worth maintaining (its a lot of work!). Mahalo.

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July 7th: The eye of the storm? Quiet trading after yesterday's heavy losses, but weak news from Yahoo and Alcoa after hours suggests tomorrow will see a return to the turmoil. The markets sit at intermediate support, namely the reaction lows of early June; 1,960 in the NASDAQ, 10,200 in the Dow Jones, and 1,116 in the S&P. Should these levels fail, then the next level of support for these markets are found at 1,932, 10,050, and 1,103 respectively, then May lows beyond that. The Philly Sox sits just shy of a breakdown in a bearish, 6-month descending triangle, a loss of this will be ominous for the tech indices and suggest a more prolonged decline. The majority of the secondary market indicators have crossed their 5-day EMA, confirming an intermediate bear trend that should last 2-3 weeks.

Precious metal stocks were the chief winners today. Gold rallied to close over $400 and sits just shy of a new 3-month high. Gold stocks were quick to follow, the chief gainers were HL, GSS, KGC which broke its price and MACD pennant to the upside. Silver did not follow golds price lead, although PAAS broke to new 3-month highs on above average volume.

Stocks spent the day consolidating yesterdays losses, or gaining on low volume. Yesterdays breakout play, WLDA, reversed on heavy volume. Climbing as high as $6.00 in early morning trading before selling off for the rest of the day. Look for lower prices tomorrow (and I suspect a stop hit). HURC broke its 1-month bearish triangle to the downside on three times normal volume. There was no stock related news to account for the selloff. FXEN ended the day with a bullish doji which bounced off prior resistance (now support) of the triangle. OMNI may have completed a double bottom - a move above $5.74 confirms. SNIC suffered its second day of heavier selling as it suffered from overall market malaise. TASR started to pullback after a couple of days of tight trading. Penny stock, DSLN, added 3.23% on above average volume, following through on yesterday's heavy volume day. Similarly, penny gold stock, PMU, made a new short term high on above average volume, benefitting from strength in the parent precious metal.

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July 6th: The stockchart list continues to be a work in progress. If there was a stock on the list that you were interested in, but has now been removed, please contact me to have it reinstated - otherwise it can be requested for the August 1st update. As requested, I have added the Dow Jones index, the Russell 2000, and Philly Semi index to the list.

None of today's markets made for pretty viewing. The NASDAQ did a good job of crashing through its 200-day moving average on heavy volume, the second day of distribution in 3 days. The NASDAQ 100 did slightly better in that it sits just aboove the 200-day moving average, although I don't expect this situation to last very long. The Dow Jones and S&P remain above their 200-day moving averages - indeed the S&P and Russell 2000 still have some distance to head down before these indices test this important support level. However, I wouldn't read this to suggest the current situation is bullish as selling volume has outpaced buying volume by a considerable margin over the last week or two. The volatility index moved well above the 20 threshold necessary to maintain the final leg of the rally, although there is plenty of resistance above which should keep the market decline relatively modest. Given the spark for the markets collapse was a weaker than expected job report, the positive news should be an ease in fears of a more rapid rate hike. There is plenty of doom and gloom out there (rising oil prices were the icing on the cake in this regard), so are we in the final phase of the downtrend started in January which has whipsawed the market in recent months? The CBOE Put/Call ratio rose over 1.00, but still has some distance to go to reach highs of 1.32 (=> another 1-2 days of declines???). Something has to give to end the malaise. I had mentioned on May 15th the need for a positive divergence in the secondary indicators to mark a double bottom - can this situation happen now? If so, it will take at least a month to complete.

I have added some of the better prior breakout candidates to page 3 of the list - these include todays for reference (CMN, VEXP, WLDA, and SLPH). The full list is ATAC, AXCA, CMN (today's), HYC, JSDA, NOOF, SLPH (today's), VEXP (today's), VLTS, and WLDA (today's).

Once I have completed the annotations for the new stocks I can return to commenting on the unusual moves in yours (and mine) picks.

July 5th: Updating the public stockchart list - likely to take a couple of days to get everything current. I have listed a few potential breakout plays for tomorrow, but none look particularly strong; DFIB, CACS, CDIK, and MECA.

Stockchart public list - please remember to vote!

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