A wrap of the day - July 6th, 2007

The day started out with futures basically flat. Then the unemployment data was released and there were no surprises. It came in as expected. At first the market reacted a bit negative to the numbers. I believe for the most part the data was priced in the markets already.

Then by about 10am the mood turned positive and we had a smooth, somewhat uneventful day of lower than normal volume buying. Best sectors today were Gold,Coal,Housing (hard to believe!), Retail,Silver,Energy,Computer hardware,Internet,Semis,Steel, and Brokers

The ones that did poorly: Paper, Telecom, Biotech,Utilities,computer software

Rebeltrader plays did well today, all posting a move up except for AKS which was ended the day flat but still a stock I am bullish on. The speculative play on WWAT shook me out but I am going back in when the buy point is reached again. I stand committed that WWAT has some large gains possible once the volatility in it settles down. As stated in the previous posts on WWAT my plan is to scale into it (scaling into a trade further reduces your risk) as you only use a small piece of your swing trade slot funds to "test the water" and establish a position at the entry price. Then we wait, we wait for confirmation that the buyers will out number the sellers wanting to take profit on the news that there was a huge insider buy of the stock. You must keep in mind that the small and micro cap stocks there is some violent moves in the price (up or down). And a small move equals a large percentage due to the low price of the stock. So it is subject to more profit taking whenever there is news or anything that suggests the company is doing well causing the price to advance.

But WWAT has some longer term swing potential. We got thrown off the bull but this is one I am going to wrestle again.

Some were pointing out that Jones Soda (JSDA) was doing well coming off of a down trend. The chart established that there are two important resistance levels that the price has to close above (key word here is close, it has to have closed above $17.00 to show confirmation that the pattern was holding. The massive sell off today showed the pattern is not holding and not ready yet) first before we can consider it for a swing trade. And today JSDA failed that test again by not closing above a key milestone point. JSDA will become a watch list item for the RebelTrader portfolio and will have strict entry points. So far that point has not been reached. Potential swing trades must have unique chart conditions which have to be met. A sequence of events and a confirmation that it is ready to grab on the move. Those conditions have not occurred yet. But when they do we will trade it methodically and by the chart.

Watch the site over the weekend for some new watch list items and some more memebr requested charts.

Have a great weekend to all.

JSDA Update

JSDA's big pop is turning into poop like I said.

One should never jump onto a ship that is revving up it's engines and leaving port at a hig speed. There is no need to chase it and get caught up in the excitement of the big move up yesterday and then this morning again. Without waiting and having patience you may be just getting on the USS Minnow for a 3 hour tour that ends on a deserted island!

JSDA is tanking here. Don't know if it will hold but may end in the red. This is why I did not take an entry. Will watch for a setup that is safe. Have a plan and trade the plan. And there is no plan yet for JSDA.

GRP new portfolio addition

As I said earlier keep an eye on GRP as it was approaching the buy point.

I took entry (1/2 position) on GRP @ $55.54

BIG,WDC,AMX all up so far.

Watch WDC for the next entry point

GRP - Watch list item

Keep an eye on GRP. Trading up and nearing the $55.50 buy point.

WWAT

The speculatitive play on WWAT as I said would have some wild swings. These small caps will do that. I set my stop out point for my 1/3 position at $1.75 and that price was hit and I sold. I remain very confident that there is some longer term big gains to be had here with WWAT and will re enter again with the 1/3 on the move above $1.80

The thing with some of these small micro cap stocks is they will kick and buck. But if you get thrown off the bull you get back on..

JSDA - bottle shaken up

Someone shook up the bottle enough for the intraday price movement to move it above resistance on the 25% short covering. If JSDA can hold on to this momentum and can close above $17.00 then this will be a setup in the making for a longer term swing trade. A 7% one day gain will be nothing compared to a many week swing trade that reverses this trend and brings JSDA back into an up trend for gains in the double digits.

Beware of panic short covering. If the company is still "out of flavor" with the big money then the one day pop turns into a many day poop. That is why we establish a setup to determine the longer term movements.

JSDA - pre market trading

JSDA has pre market trading activity. Once again it has not been able to break resistance and the BxA has been pulling back.

For JSDA to be considered a possible swing trade going forward it must close above $17.00. Then we will set some guidelines for an entry after that. But right now resistance is keeping Jones Soda (JSDA) flat... no fizz yet.

Rebel Traders needs a logo

To my now 300+ (and still growing) regular readers I submit to you this question. If you have an idea for a rebeltrader logo please let me know. I'm open to ideas. I have some of my own but I always respect my members and their ideas.

Any ideas just let me know. fp80@rebeltraders.net

AXR profile

A loyal rebeltrader member has brought up AXR. This stock has been on the watch list for some time now. I will do a profile on AXR over the weekend detailing the company history, what drove the price down starting back in January 2007, their financial situation, and what I'm waiting to see happen before I have confidence that AXR is ready to begin it's recovery.

I thank the many members of rebel traders for their ideas and wonderful compliments. The future for the rebeltraders web site will have new features for real time chat, member section for exchanging and posting your own ideas for consideration, and general 'market talk' among the rebel's! Also in the works is a live portfolio tracking system that will constantly show the rebeltrader portfolio gains, draw down, average trade hold time, and the projected annualized rate of return based on the actual history. Full transparency will be the concept of the live portfolio tracker.

Thank you again Rebels! We rock!

Pre Market - July 6th 2007 UPDATE

Employment data comes in as expected. No surprises.

Futures jumped slightly after the data but are coming back down. This employment data was "priced in" the market already. With the data coming in as expected there is no news to rally the troops because they were already expecting the numbers to be what they are. Still 1 hour before the market opens so we will know better then the mood for the market.

Pre Market - July 6th 2007

Not much to report as all eyes and ears are waiting on the unemployment data. Futures are presently flat. Quiet morning so far. We will see how quiet it is once the unemployment data is issued.

Then again, that may be a non issue and today will be a typical Friday with low volume and profit taking before the weekend.

Chart Request - FRPT

RebelTrader subscriber requested a chart analysis of FRPT. Shown here is a weekly chart for FRPT.

Market Summary - July 5th 2007

Bond yields were the food for bears today. The market volatility was all over the place today but even with the volatile conditions I still entered or added to swing trades today.

The public charts have been updated with current stop loss values for current open trades. ALGN goes back onto the watch list tonight.

Additional watch list stocks coming over the next few days. Waiting for more market movement to decide on which sectors I am going to post new watch list items for.

See you in the morning...

FP80 pick AMX gets a boost from UBS

Today before the market closed UBS Securities announced their five top stocks in the Mexican market. AMX is at the top of their list.

See the story here. UBS Story

A deeper look at JSDA and why technical analysis is important

Earlier today I posted a daily chart for JSDA and noted the resistance levels that were critical for the stock to overcome in order for JSDA to be showing signs that it is reversing the down trend.

The following chart is the JSDA intraday chart from today (5 minute interval). Three attempts were made by the buyers to bring the price up but each time the sellers would chop them down. And each try after that the buying intensity was dropping.

Technical analysis is the scientific study of supply and demand (the emotions of the buyers and sellers), and it reveals to us when the right time to enter a trade is and when it is not the right time. In the case of JSDA today having a nice rally it could attract the unsuspecting buyer thinking they were buying a bargain as the stock was on a new rally. But the chart tells a different story. The charts today show it failed to break the down trend resistance levels and a closer look at the intraday chart shows the intensity of the buying dropped off as it failed to break resistance. The charts tell the story. We wait for a break over resistance for confidence the trend is reversing.

Quote of the Day

"Winning isn't everything, but wanting to is".

... Arnold Palmer, US Golfer

The moral of this quote is that winning all of the time is not important. But having the desire to win is. One must have the ambition and the desire to win in order to win anything at all. You must have a passion to succeed, a desire to take control of ones wealth, destiny, and goals. A desire and a drive to achieve something you have not done yet.

Who are you competing against? .... yourself, that's who.

In stocks we only have to win more than we lose in order to make our investments grow many fold. If you give up on yourself and your abilities then you have lost the game in all levels of competition. Everyone has more abilities than they ever realize. They just have to want to use them and have the desire to exercise them to grow.

Chart Request - JSDA

A RebelTrader memebr has requested a chart analysis of Jones Soda Company (JSDA). The chart for JSDA has been added to the FP80 Public chart list so that we can follow it.

Intraday VIX chart

As stated a short while ago the volatility has been a problem today. The chart shows the rise in volatility so far today.

Bulls running for cover as bond yields spike

Again the bond yields are spiking today. Sending the buyers to the coffee pot to take a break and leaving the bears run wild through Wall Street. Hardest hit are the financial and utilities sectors.

Bears are getting hungry as lunch time gets near

The bears are starting a food fight in the cafeteria here as lunch time approaches and the bulls are taking most of the pies in the face. (picture: food fight scene from the classic movie Animal House)

Market is stubborn today. We need to find a way to fool the bears into thinking it is winter so they leave us alone and go back into hibernation.

Market update

Market volatility (VIX) is increasing this morning and has us once again in a bearish stance. Up and down, up and down, and up and down we go within this trading range. This see saw action is getting tiring.

At 10 am US east coast time the E.I.A. energy statistics were released and they were bearish for the energy sector. Oil fell back some and some of the energy sector stocks are taking some punishment this morning.

AMX is doing super here and is soaring on good volume. Were up almost 5% from my original buy point just a few days ago.

AKS is consolidating around the original buy point. Still bullish on this metal sector play.

BIG has pulled back but still remains above the original buy point of $29.20. Some consolidation taking place but still seeing some large uptick trades going through so other people are also playing BIG for a move up soon.

WDC posting gains this morning and holding up well in the market volatility so far.

WDC - Update

FP80 portfolio play WDC is trading up nicely again. Next buy point for adding the second 1/2 of my position will be on the move above $21.80.

Once it trades above $21.80 I will be full loaded in my swing trade slot for WDC

AMX Update

AMX has reached the second buy point. I added the second 1/2 of my position in AMX @ 65.16

WWAT Update

The trading volume on WWAT is impressive. It has traded 1/2 of its normal daily volume in only the first 25 minutes. My plan is to add a second 1/3 once it moves above recent highs. Add second 1/3 on the move above $1.97

WWAT - entered 1/3 of a position @ $ 1.83

I am adding this one speculatitive play to my FP80 portfolio. Have entered into WWAT @ 1.83 with 1/3 of a normal swing trade funds.

AMX - Watch for move above $65.10

AMX is trading well this morning so far. I will add to my position in AMX by adding the second 1/2 of my position once it makes the move over $65.10

A possible speculative play in WWAT

I don't usually follow the Over the Counter (OTC) markets all that closely but once in a while something will direct me to take a closer look at a stock on the OTC. (OTC is not to be confused with pink sheets, OTC stocks are typically low priced securities that do follow SEC guidelines and are reporting companies. In some cases stocks that begin on the OTC make it to the big boards).

I found a news item on WWAT that makes this worth a look. Today it is being reported that 10% owner "Quercus Trust" has bought 2.26 mln shares for $1.64 recently. Normally when you see a large insider purchase that is something to take notice to. WWAT is a small company that is engaged in the business of providing water and power solutions using solar electric technology. With the news of the large insider purchase then it deserves some attention. I will provide a chart analysis of WWAT in the near future. In early market trading there is activity already in WWAT. This news may provide an opportunity for longer term holders to sell out on the news. It may also bring more new buyers than sellers in which case the price will close higher today. But what I would do is buy a very small piece of WWAT here now. Using one of your 10 slots for a swing trade use 1/3 to establish a position now. If the price gets above $1.90 then don't buy. we will wait for a pullback. IF the price drops today then that is OK, still take a 1/3 position in WWAT. Then we will wait for the trading action and the charts to tell us when and where will will build on the position. But only use 1/3 of a swing trade slot to establish a position. This is a speculative play. We really should only have no more than one speculative play in our portfolio at a time.

Pre Market - July 5th 2007

Good morning to all...

A few items of interest before the markets open:
Asian stocks rose for the 6th day (except China) on increasing prices of computer chips and metals. China tumbled on concerns over the new share sales may drain liquidity from that market. Bloomberg article.

The Bank of England raised their benchmark interest rate to 5.75%. The feeling among the investors in Europe is that inflation pressure will force the Bank of England to eventually raise the rate to 6% by the end of this year. European markets are trading down overall as this moment.

Research in Motion (RIMM) after many years of paperwork and lobbying has now received permission to sell their products in China. This is a rather significant event and bodes well for long term holders of RIMM stock.

Recent IPO Blackstone (BX) has not wasted much time in flexing their muscles as they have announced plans to purchase Hilton Hotels for $47.50 cash per share. No feeling on this other than it is great news if your a long time holder of Hilton stock. I wonder if the recent IPO of Blackstone is going to provide them the ambition to be even more aggressive now and go after more companies than they have been.

Over the holiday I received an email from a friend who works for a Fortune 100 company. He said that their IT department issued a memo to all employees telling them that the new Apple (AAPL) iPhone would not be allowed in their facilities. The IT team went on to say that the iPhone did not have enough security protection features to protect company data and thus is being banned from that Fortune 100 company network.

Us futures are up slightly at this time. Oil is also up again and is approaching $72.00. Everytime oil ticks up I get more nervous about a summer slump in our markets. Spot gold prices rose overnight slightly during trading in the Asian markets and European markets. Currently gold is pricing at $655.90 Us.

A note to my readers: It is my determination and focus to always be objective in my observations of the markets. I look at a chart and I view the overall greed and fear (supply & demand) for a stock and I will always objectively report how I feel what the chart is saying. I will never 'pump' any stock for my own benefit or for anyone else's. I will never tolerate that type of action and it will never appear here. I see too many web sites, forums, and chat rooms where the majority of posts are all about how great this stock is or how wonderful some company is. They are encouraging others to buy in to the stock so that they can benefit from the increased buying. That is what 'pumping a stock' is. And it will NEVER happen here. I despise that behavior. One of my reasons for creating RebelTraders is to have an open exchange of ideas. And we will leave the stock pumping to the yahoo message boards and the many other sites that people SPAM constantly trying to encourage people to buy a stock.

Remember that the PRIMARY goal of RebelTraders is to educate, provide stock trade ideas, provide commentary on price movements from a technical analysis perspective, and to promote and teach the proper ways to make money in the stock markets by providing examples of how to enter a trade, when to exit a trade, and how to learn to perform these actions on your own. The best reward for me will be that I have contributed to a person's understanding of how the markets really work and how to survive them. For example: If I save someone from losing money by providing a long term chart detailing a specific price that should be used as a decision point to sell and take profits (before it falls even more) then I will feel good. If through my teachings and commentaries I take a newbie in the markets and turn him or her into a disciplined trader who understands how to read a chart then I will feel good. There is way too much corrupt money making schemes out there in the world. People selling books claiming that you will make $500,000 in the markets in just 2 months, or they entice you into buying some system for many $$$ only to find that their money making results are the same or worse then before they bought the system. You know that you do not need to buy complex 'black box' trading systems, you do not need to have inside information to win, you only need to know how to read the charts and determine what the flow of money is saying. All of the news, fundamental data, inside information, mutual fund buyers and sellers, speculators, rumors, etc etc etc is in the chart. Reading the chart you get all the news you can ever want.
Also, you will notice that I will never discuss penny stocks "pink sheet securities" on this site. The penny stocks are ripe with false information, rumors, poorly managed companies who are not required to file earnings statements to the standards established by the SEC, and are the biggest target of stock pumpers. How many of you have received an email (SPAM) from some John Doe saying "buy xyz before tomorrow.. this stock will skyrocket and go to the moon!". The stock they are referring to is probably trading at a price of less than .05 cents and is worthless. But through their complex SPAM and pumping they entice the uneducated to put their hard earned money into the stock and then nothing. It flops.

So at RebelTraders.. I will help you learn the ropes to survive the markets and eventually hope that one day you won't need RebelTraders anymore as I will have provided you the encouragement and skills for you to pursue your own trading career. But it would be nice if you still stop by once in a while and say hello!

Happy and SAFE 4th of July

With the markets closed today I want to post a message to wish all of my readers a happy and a safe 4th of July.

If you have read my profile you see that I am a volunteer with my local fire department. Speaking as a fire department volunteer I hope all of you will be safe this holiday (and always), remember to be careful with the use of fireworks, and to be careful with driving after a day of celebrations and family gatherings. I see too many accidents on the roads being involved with the fire / rescue activities. Be safe out there. I want you all to be healthy and ready to go for when the markets open tomorrow!

Happy 4th!

Chuck

(Fp80)

What does the FP80 mean??? Long story but it became my nickname in the fire department and it stands for Fire/Police/District 80.

Apple squeeze turns into Apple juice

Watching the trading action going on it is obvious what is happening. The run up this morning was started by some large buys. The price started running up and then shorts started to cover. All of the market knew the price of Apple shares were going to pullback due to the hype having been priced into the stock. In the run up to the iPhone release the shorts were piling up in anticipation of the expected "sell the news" scenario. But someone outsmarted the shorts today. Someone with deep pockets knew as we all figured out that there were a high number of shorts that had piled onto Apple lately expecting the stock to sell off once the hype was over (and it still will). But the smart deep pocket person(s) today started buying up Apple out of the gate and sending the price up so that the shorts would cover. So we have a short squeeze here in the last couple hours. Now for the person(s) with the deep pockets that started the buying pressure earlier they will cash out when the Apple squeeze has resulted in the last drop of Apple juice to be squeezed out.

I would not be surprised to see some very large block trades just before the bell as some will cash in on this short squeeze (possibly even the deep pocket people that kicked this off). When the price got up to $127.00 there was a war going on. Apple will still pullback. And after this short squeeze I expect it may be a rather hard pullback when it does happen. Still bearish on Apple short term. bullish long term.

Apple action

Incredible that Apple would have that much buying this morning. If I were doing day trades today I would short Apple here at $126.65 with a stop at $127.00. I see the last hour of trading as a profit taking bonanza in Apple.

 

NOTE: Day trades are for experienced day traders only. Do not enter this trade if you are new to the markets or only do swing trades. Day trading is a whole different animal.

 

 

 

 

WDC - Long @ $20.37 (1/2 position)

That did not take long. Price target reached. Went long with a ½ position at $20.37

Update On WDC play

I still don't like the short trading day and the overall lower volume. But WDC is still holding up well. Here is what I will do. slight modification from the original plan for WDC.

Buy 1/2 position on WDC on a move above $20.35 if it gets there today, But not until it reaches above $20.35 !

Another FP80 play is nearing a buy point

but don't buy! (just yet). WDC is almost reaching the buy point as show on the chart. But the volume is way too small for a comfortable entry today. Even if you see the price on WDC extend up past the line on the chart hold off on pushing any buttons on it. While it looks good the volume is not to my liking. So we wait. That's all, not a big deal. Better volume will come and give us better confidence in the trade.

AMX - long @ $63.31

Missed my buy point by a some cents but not a big deal. Entering AMX at $63.31 (1/2 position only at this point)

BIG - adding to position at $30.66

Gapped up on us. Add your additional 1/3 for this position here between 30.50 to 30.85.

Add the final 1/3 to this swing trade when the price breaks above $31.80.

Based on how it closes today I may be raising the stop loss price to protect our capital invested so far. Will address that tonight after the market is closed.

Pre market July 3rd 2007

Today will be a short day (markets close at 1pm EST). Don't expect too much to happen today. On a short trading day the volume will generally be on the light side. Brokers and big money managers are heading out of Manhattan today to get to the Hampton's and beyond before the traffic gets bad !

There is not much in the way of significant news to report this morning. Apple is catching a little bit of pre market up ticks but by the end of the day my feeling is AAPL will be down again. I am near term bearish on apple but long term bullish.

Yahoo (YHOO), a stock that many investors and traders have given up on (including me) saw this morning an analyst upgrade. Oppenheimer raised their FY07 revenue estimates for Yahoo based on their view that the management changes and their new ad revenue system will pay off. For me I will remain the skeptic and wait for the proof in the charts. I am bearish on YHOO.

Crude oil is currently at about $71. Here are some thoughts on the market for the summer months. Remember that the summer period is usually the slowest in the markets. The "summer slump" as some call it. If oil continues to rise then we will have a greater chance of breaking to the downside of our current market trading range (see DOW chart on my public charts list). If that happens then will will indeed have a summer slump with a bearish summer. I maintain my long term bullish stance on the markets. Just have to watch that the oil prices don't send the bulls off to summer camp!

New watch list item - AMX -

Added AMX to the watch list.

Swing Trading Basics

Shortly I will be doing a multi part discussion on the basics of swing trading. The topic will cover everything from the type of equipment one needs (and does not need) to money management, discipline, stop loss, and executing the trade.

You can consider this as a "swing trade 101". It will be throughout the month of July.

Fp80

Big up day on light volume

The only real notable event today was the ISM (Institute for Supply Management) released their June manufacturing index. The index was 56% which was a bit higher than the market was expecting. This eased the minds of some in that it suggests a lighter inflation picture. Remember that the markets are all about greed and fear. The bulls and bears will jump all over any news that feeds them. While there was food for the bulls today it only takes something else to turn the table and get the bears hungry.

The market advance today brought AKS up to my buy point. AKS was entered long @ $38.58.

Current open position BIG also advanced well today and got close to the second buy point for adding the next 1/3 of the swing trade funds.

Watch list item WDC also advanced fairly well today and if the upward move continues then we will reach the buy point.

Some subscribers to RebelTraders knows I am long on FRPT as a long term play. The close on Friday was a great price for any new investors. Today that proved to be correct. FRPT rallied almost 10% today. And after the close of the market today there was news that Congress may be adding additional funds to purchase 4 times more vehicles, the type that FRPT builds. This will most likely add to the momentum in FRPT.

On the DOW index we are still stuck inside this trading range that we have been in for a month now. We really need to see a move out of this range in order to see the market regain some composure and get the volatility back down and stable.

Fp80

Volume drying up..

Just nothing going on in the afternoon to bring investors and traders to the tables. We had good buying in the morning session as the 3rd quarter kicks off. But being the holiday week the volume is low. And in the afternoon it became evident. One good thing is that there seems to be no rush to be selling anything so that is why I took the position in AKS earlier.

Most sectors with the exception of Paper, Comp Hardware, Software, and Housing are doing good.

Buying AKS here

After some early morning buying volume it had tapered off and fell back slightly. It is picking up again and now I'm going to take a position in AKS here at $38.58

Long AKS @ 38.58

AKS has reached buy point

But is struggling to stay above it.. I’m waiting for a sign that it is pushing through with force before going long.

Pre Market July 2nd 2007

Well in pre market trading Apple is trading down a tad bit. No surprise there. I have been saying that the hype of the iPhone has been priced in the share price leading up to the iPhone release. And now those that were investing in Apple since the first announcement of the iPhone are now taking their profits as they know this is the end of the line for the iPhone hype. Think of the action in Apple today like the action that takes place at the airport. You know those shuttle trains that carry you from the ticketing concourse to the gates, the doors open on one side of the train while the people already on the train exit on the other side. Well that is what will be happening in the Apple stock today. The doors will open on one side of the train and people will leave while the doors on the side will open and new people will enter. Now the big question here for Apple is will there be more people exiting the train then there are new people entering? In the short term the answer is no. That is why we are seeing the AAPL shares trading down in pre market. Over the weekend there have been some negative reviews of the iPhone released and some problems with getting the phones activated are also making their way through the press. All of this combined will add to the "end of the line" for the iPhone hype. What does the future hold for Apple? In my view it is still a good long term hold. There will be short term volatility as people are cashing in their profits and the train slowly fills up with new money.

The week ahead will be light as far as economic data released:

• Monday: ISM Index


• Tuesday: Pending home sales data, factory orders (markets close early on Tuesday)


• Wednesday: markets closed


• Thursday: Initial claims data


• Friday: Employment data

The events over the weekend in the United Kingdom seem to have been a non issue in the markets so far. Futures are up a bit and oil fell a a tad but is still over that psychological number of $70.00. With this being a holiday week expect the trading volume to be slightly lower than normal overall.

Be sure to keep an eye on the new watch list items.

7-1-07 New Watch List items

New watch list items:

AKS (updated setup)
BVF (updated setup)
ONT
JOSB
NGA
GRP
WDC

AKS and BVF are from the previous watch list but remain possible plays, charts have been updated.

Please see the public charts list for the explanation on each item. Some of the plays have split entries (1/2 at one price and 1/2 at another price): http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2147404

In the public charts list for Rebel Traders I will use the following format in the title of each stock:

Any chart preceded with ### is an index.
Any chart preceded with ## is a current open trade I am in.
Any chart preceded with # is a watch list item

With the events over the past two days in the United Kingdom we have to see how this will affect the markets. Because we are currently in a trading range in the major indices this may prolong this type of trading. We have to see.

You will notice that some of the new charts in the watch list are weekly charts instead of a daily chart. It is important to remember that all good traders will always check backwards to get the big picture of support and resistance levels. Looking at a daily chart for the past few months may give some clues about the current stock health but one always needs to look back in time much more to see what obstacles the stock will still need to challenge. Always study your own stock plays by looking at weekly and even monthly charts to get the big picture. Even swing traders need to do this. Just because we may hold a stock for a few days up to a few months does not mean we only need to concern ourselves with the daily charts. On the contrary, for us to benefit the most and have the best picks we need to see back in time where major events (support and resistance) are at.