Keep Your Eye On This Stock Wednesday

With the major market indexes testing clear-cut resistance levels, it may be time to turn our attention to short term selling opportunities. Dominion Resources, Inc. (D: 41.83 -0.07 -0.17%) has been trending quietly lower the last six weeks and is beginning to show early signs of weakness, which could yield short term profits! Check it out.

Sell Signal

The Modified PEMA Crossover system has fired a new Short opportunity for $D, which has been in the midst of a six-week down trend. Every pull-back has been a selling opportunity recently, which bodes well for the current sell signal.

If price remains below $42.50, this stock has a shot at dropping below $41 in the days ahead, with a target somewhere between $40.50 and $41.00.

Bearish Confluence

There are two additional layers of pivot-based resistance that form a powerful form of bearish confluence: the pivot range and the yearly H3 Camarilla pivot level.

During trending markets, the pivot range can serve as support in an uptrend, and resistance in a down trend. Since $D is currently holding below the top of the pivot range at $42.40, downtrending behavior should remain intact.

Watch for a break through the bottom of the range at $41.80 for signs of downside follow-through.

Additionally, the $42.40 level also happens to be the yearly H3 Camarilla pivot level, which is usually seen as a bearish zone. Clearly, $D has responded to this pivot and price level throughout the year, which means another round of selling could be ahead.

Again, as long as $42.50 remains untouched, look for a potential drop back toward $40.50 to $41.00.

Let's see how this one plays out!

Stock Picks For Thursday: DryShips, VIVUS, Cisco, ARCA Biopharma, Eastman Kodak

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DryShips Inc. (DRYS: 5.91 -0.1099 -1.83%)  suffered another day of profit taking with a 1.83% pull back but traders bought the dip at $5.90. Today's stock price action looks like further consolidation after Friday morning's big spike up. The technical picture is mixed but the medium-term trend is bullish and I suspect that DRYS is poised to move higher from here. My first target to take profits is at $6.83.

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The big news with VIVUS, Inc.(VVUS: 9.00 +1.20 +15.38%) today was that Orexigen's drug Contrave had cleared a major regulatory hurdle on the road to approval. I believe it was today's news that accounted for VVUS big volume today. Usually when we see big volume and no movement with a stock near its highs I suspect it's distribution and bulls should turn more defensive. At this stage, the stock might be due for a rest so watch for a dip back toward $8.70. A closer look at the RSI reveals that the stock is extremely Overbought. On the other hand, fresh exposures may be considered on a move above $9.32, with a stop-loss at $8.70.

 

The overall trend in Cisco Systems, Inc. (CSCO: 19.35 -0.04 -0.21%) remains bearish but looking closely at the chart above we can see that in the short-term the stock is trying to bounce from oversold conditions. I've been concerned that the lack of downward momentum at this level is suggesting a short-term bottom. Before buying this stock, I want to see the price break the resistance of $19.70 and the 20 day moving average to the upside. On the other hand a drop under $19 would be very bearish and reinforce the downtrend.

 

ARCA biopharma, Inc. (ABIO: 3.19 -0.32 -9.12%) continues to sell-off and on big volume, which is normally a bearish sign. The stock lost 9%. In terms of technical levels, the next major support is seen at 3.10 followed by 3.01.

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I do not see any significant changes from my previous updates on Eastman Kodak Company (EK: 4.77 +0.15 +3.25%). The stock continues to look bullish. Keep an eye for a possible breakout over $4.85.

Unusual volume in today's trading session

ACTC – Advanced Cell Techn
AVTI – Avitar, Inc.
GOIG – GoIP Global, Inc
TAON – Tao Minerals
EDWY – eDoorways International Corp.
OREX – Orexigen Therapeutics
ARNA – Arena Pharmaceutical
SWC – Stillwater Mining Co
VVUS – Vivus, Inc.
SMVI – Social Media Ventures Inc.
KFN – KKR Financial Hldg
IVN – IVANHOE MINES LTD ORD
GCHK – Ridgestone Resources
PUDA – Puda Coal Inc
TECO – TECO Energy, Inc.
GCOG – Gulf Coast Oil and Gas, Inc.
BLAP – Blast Applications, Inc.
MW – Men's Wearhouse Inc
GST – GASTAR EXPLORATION
ALXA – ALEXZA PHARMACEUTICAL
CWTR – Coldwater Creek, Inc.
GDOT – Green Dot Corporation
BJCHF – Beijing Capital International Airport Company Limited
MNTA – MOMENTA PHARMACEUTICAL
TASR – TASER International
NWD – New Dragon Asia Corp
RNRG – REVONERGY INC
CALCQ – California Coastal
AGL – A G L RESOURCES INC
ITCD – ITC DeltaCom, Inc.
KFY – KORN FERRY INTL
EXSFF – Explor Resources Inc
CSKH – Clear Skies Slr
PRKR – ParkerVision, Inc.
INKN – Shrink Nanotechnology
AVNW – Haris Stratex
CYBI – Cybex International
CRME – CARDIOME PHARMA CP
BAESY – BAES SYS PLC SPONS ADR
LSTZA – Liberty Media Corp
RFLMF – Riversdale Mining Ltd
ETRM – EnteroMedics Inc
VIZS – VizStar Inc
PDEP – Diamond One Inc
HPLF – Zeta Corp

New 52-week High stocks

OREX – Orexigen Therapeutics
XOM – EXXON MOBIL CORP
SLE – SARA LEE CORP
ONNN – ON Semiconductor Co
CVX – Chevron
KOG – KODIAK OIL & GAS CP
GNTX – Gentex Corporation
LYB – Lyondell Basell Ind
ADI – ANALOG DEVICES INC
ENTR – Entropic Communication
WIN – Windstream Corp
MCHP – Microchip Technology
URI – UNITED RENTALS INC
KFY – KORN FERRY INTL
AKAM – Akamai Technologies
KBR – KBR Inc
CPWR – Compuware Corporation
NVLS – Novellus Systems, Inc.
COO – COOPER COS INC NEW
FO – FORTUNE BRANDS INC
ARBA – Ariba, Inc.
OII – OCEANEERING INTL INC
CSE – CAPITALSOURCE INC
SINA – sina.com
LRCX – Lam Research Corpor
MXIM – Maxim Integrated Pr
ANAD – ANADIGICS, Inc.
NXPI – NXP Semiconductors NV
IDCC – Interdigital Communication
FISV – Fiserv, Inc.
EXPD – Expeditors International
BIIB – IDEC Pharmaceutical
ROVI – Macrovision Corporation
DDS – DILLARDS INC CL A
CPHD – CEPHEID
LINE – LINN ENERGY LLC UTS
VRSK – Verisk Analytics

MACD Bullish Cross

YHOO – Yahoo! Inc
MFC – MANULIFE FINANCIAL
MDT – MEDTRONIC INC
RELM – Relm Holdings, Inc.
VMED – Virgin Media Inc
UBS – UBS AG
ACAS – American Cap Ltd
BCS – BARCLAYS P L C
NRTLQ – NORTEL NETWORKS CORPORATION
ADLS – ADVANCED LIFE SCIENCE
CTIC – Cell Therapeutics
ZMH – ZIMMER HOLDINGS INC
PGR – PROGRESSIVE CORP
HBC – HSBC Holdings PLC
MCP – Molycorp Inc
DV – DEVRY INC
HPLF – Zeta Corp
PBI – PITNEY BOWES INC
RDS.A – ROYAL DUTCH SH A
AVAV – AeroVironment Inc
L – LOEWS CORP
ERJ – EMBRAUER EMPRESSA BRA
AHL – ASPEN INSURANCE HLD
E – E N I SPA ADR
DLTR – Dollar Tree Inc
CS – CREDIT SUISSE GROUP
ACLS – Axcelis Technologies
QGEN – Qiagen N.V.
ESI – I T T EDUCATIONAL SVCS
XPRT – LECG CP
DB – DEUTSCHE BANK AG
BKI – BUCKEYE TECHNOLOGIES
VSYM – View Systems Inc
BEAT – CardioNet Inc
MELA – Mela Sciences

Stocks that gained more than 10 per cent during the day

AVTI – Avitar, Inc.
TAON – Tao Minerals
ALTO – Alto Group Holdings
OPTZ – Optimized Transportation Management, Inc.
HTDS – Hard to Treat Diseases Inc.
SOLR – GT Solar International
ZVTK – Zevotek, Inc.
PASO – Patient Access Solutions, Inc
BLOAQ – Blockbuster Inc
ALXA – ALEXZA PHARMACEUTICAL
AVVH – AvVaa World Health Care Products, Inc.
LXRX – Lexicon Genetics In
LGTT – LIGATT Security International, Inc.
KFY – KORN FERRY INTL
GNTA – GENTA INC

Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in AC Investor Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence.