Chart Setups - ESRX, AKAM, RIMM, SINA, SOHU, GOOG

The following charts were posted on Chart.ly.

SINA is a morning star stick reversal pattern with good volume.

SOHU is a bullish engulfing stick on the support zone.

RIMM is a morning star reversal pattern on long-term support with a very oversold RSI.

GOOG is a wide bullish engulfing stick in a key support zone.

ESRX is a base on base continuation setup.

AKAM is a hammer reversal stick on support.

Trade Review - CELG, AMGN, FSLR

Sunday's post "Biotechs Poised to Breakout" was a good starting point for Monday's day trading.

CELG took out the PDH in pre-market trade, so I used the PM high as my trigger. The stock ran up in morning trade and consolidated sideways in the afternoon. As long as price holds most of these gains, I'll be looking for further upside.

AMGN was somewhat extended after Friday's big move, so I was looking for some retracement. It carved out a bullish morning star reversal pattern just above the 38% Fib. retracement of Friday's range. Wait for a low risk entry. After a slow start, it worked nicely in the last two hours of the session.

FSLR from the focus list, took out resistance in early trade, retested and held as support for a fast move higher.

BIIB, which I didn't trade today, looks like the best biotech setup going into Tuesday.

Opening Range Breakout - Agrium Inc. (USA) (Public, NYSE:AGU)

Shortly after 9:00 EST, the TI pre-market scanner had a lot of activity in Agchem, with CF ripping higher and AGU lower. AGU for CF was in play - short the acquirer and long the acquiree. I place my fibs from the pivot low to the pivot high and the trade became obvious with NRIB at base of R-zone.

A second trade presented itself on the retracement. This time place fibs from ORH to morning pivot low and watch price in the R-zone.

CF didn't go anywhere near the offer price (I read $72 on Briefing, but maybe it was a typo).

Last night we said that after yesterday's gold drubbing, we might get a snap back. Okay, so that was too optimistic, but the ORB trade set up nicely as price tested the R-zone for support and rallied from there.

The snap back rally might happen tomorrow. As you can see from the daily chart of ABX, today's stick is an inverted hammer and could form the middle bar of a morning star reversal if tomorrow we rally up to the mid-point (or more) of yesterday's WRB. Many gold stocks printed similar patterns so not just ABX.

Last night we said FSLR was trading lower on earnings. I was watching it out of the corner of my eye, but must have been distracted, because I missed the actual BO. Rather than jump in, I waited for price to consolidate. Place fibs above BO base and wait for retracement. I was expecting a flag, but instead I got a shoulder, so I knew that I had to get out earlier than planned ( 15 min. chart looked like inverse C&H).

Nice extension (big head). I should have entered long as price broke above 50% extension level (NRIB), but I was waiting for inverse H&S to take shape. It got sloppy and didn't break successfully. Finally jumped in on a mini three point base.

Short into the close. Since the close is weak we may get further downside tomorrow. The prelim. target would be $100.00, but could, over next few sessions fill the Nov. gap.

Capitulation - Bank of America Corporation (Public, NYSE:BAC)

The banks went into free fall amid rumors and speculation regarding the government's bank stability plan. In early afternoon they capitulated on huge volume. BAC carved out a morning star reversal pattern, so it appeared safe to get long.

Capitulation volume spikes foreshadow that a bottom is near. However, if not accompanied by a clear reversal pattern, size it accordingly. In other words, be prepared to average down.

For this particular trade, I placed my fibs from yesterday's close to today's low because I wanted to be conservative in my expectations. I took a partial as price approached the ORH and exit balance on gap fill.

Gap & Go - Research In Motion Limited (USA) (Public, NASDAQ:RIMM)

RIMM gapped down on lowered guidance. Price tested the round $ number $50.00 and tried to save itself, but sellers prevailed. It's hard to know exactly when to get in because the gap is so wide and the pivots are so far above price. Look for narrow range price action to develop with reasonable stop. Here I'm placing my Fibs from yesterday's close to the ORL. The OR is too narrow and the gap too wide, so I think this gives a reasonable target. But I took a partial at $48.00 to lock some in. Eventually, the 50% fib. extension was reached.

NVDA was much easier because we can key off of S2. Cover as price approaches the whole $ level.

Missed the gold stocks rally off the open - Fast moves to R2 - AEM and GG, and ABX didn't do to badly either.

HES - 2 IBs - partial at whole dollar level. There's a base at the blue line which may or may not hold as support. Morning star reversal pattern - cover balance and long.