Comments on: Capone’s Legacy, continued … Booze and Gambling. Mmmmm.

By: spreadtrader

spreadtrader — Tue, 12 Aug 2008 22:45:55 +0000

Do all “defensive plays” go down? RTN is a very interesting long term chart. On a weekly chart draw a trend line from the low in October 2005 through the low in January 2008 and continue the line upward to the right of the chart. You’ll see that the present price at 61.00 touches the line from below. This is called re-testing the trend line. Odds are that the stock will fall from here, especially based upon the pattern exhibited from October to May. I’d look for a downside of 45.00 – 51.00. P&F technicals confirm that it’s not a stock to buy now. If you buy it……buy puts for insurance. If I’m wrong, you can burn me in effigy between your two idols.

By: Mimi

Mimi — Tue, 12 Aug 2008 22:16:05 +0000

Do you know which india homebuilder stock that Navailler is talking about in his lattest teaser for Quantum Growth?

By: farley 5

farley 5 — Tue, 12 Aug 2008 19:54:52 +0000

Wow! LVS is a volitile one.

http://stockcharts.com/def/servlet/SC.pnf?chart=LVS,PLUADANRBOPADF1!3!2!!2!20]&pref=G

Suppose you may have a bounce to the Bearish Resistance line at $82. This poor thing has a lot of work to do. Traders may do well with very tight stops. As Spreadtrader says: Volitility is the traders friend. I can’t use this one as an investment. Too old to be nimble.

By: clicclic

clicclic — Tue, 12 Aug 2008 18:46:53 +0000

My current idol (besides you Gumshoe) says that Raytheon is a nifty buy. Leeb considers it a good ‘defensive’ play (har har). And yes you can have two idols, especially in India!

By: elissa stein

elissa stein — Tue, 12 Aug 2008 18:36:21 +0000

Good report, Gumshoe! I too, am waiting for Deo to fall further. It is a good company. But for now, I think the most important thing is to invest in defense stocks. Russia’s sojourn into Georgia ( appears there is a ceasefire in the works) looks like the start of many more commodities based skirmishes to come…