After much nervousness in the holiday trading sessions, the beginning of the new year launches stocks higher without regard to past tentative tendencies or indicators.
LEAP wireless gained almost 9.5% and has reached the short term price target set. LEAP also seems resolute to refute the random downgrade from Piper Jaffray not only for this short term target, but perhaps the long term target as well, and keep alive the seasonal move projections into March.
Just as one stocks random events are resolved another begins. Last week DRYS was in a correction and the 5.35 trading level was setting up nicely for a flat correction bottom with large bids supporting this price in particular.
Today, Morgan Stanley downgraded DRYS from an “overweight” rating to an “underweight” rating, in an ambiguous release that sited a bearish scenario price target of 1$, however keeping their 9.50 price target if a more bullish scenario should unfold.
The last week of December 2010 we discussed the DRYS correction and it is now likely with this report being released that DRYS will target the 4.84 price. The sequence of events is eerily similar to LEAP’s fortunes in late November 2010, as today was a huge up day in the markets, leaving DRYS behind after this downgrade.
Tellabs made a strong move higher out of the possible correction formation that was spoke of earlier, but closed the day lower, closer to the projected correction levels of the anticipated move.
The SDS met a short term wave 5 downtrend target, projected at 23.60 as it traded to a low of 23.10- a 2% difference.
MPEL traded outside of the 62% retracement level expected, trading to 6.83- a 7% gain on the day. The current range is anticipated to be contained by the prior high and low previously stated although the uptrend should continue longer term if further correction results.
EK traded higher after meeting correction expectations and trading past 5.50 December 31, 2010. The larger trend for EK estimates trading levels towards a 7.00 price target.
Also, an analysis of the 2009 trade alerts was completed.