Trade Lessons To Find Breakdowns & Breakouts

BreitBurn Energy Partners L.P. (BBEP) is an independent oil and gas partnership focused on the acquisition, exploitation and development of oil and gas properties in the United States. The Company’s assets consist primarily of producing and non-producing crude oil and natural gas reserves located in the Antrim Shale in Michigan, the Los Angeles Basin in California, the Wind River and Big Horn Basins in central Wyoming, the Sunniland Trend in Florida, the New Albany Shale in Indiana and Kentucky, and the Permian Basin in West Texas.

I went long BBEP @6.02 once the $6.00 resistance was broken. Missed the top price, but made good 4.50% return.

Trade Lesson: Buy breakouts.



Walter Industries, Inc. (WLT) through its operating segments offers a line of products and services, including coal and natural gas, metallurgical coke, mortgage financing and home construction.

I went long WLT @23.02 once the $23.00 resistance was broken. Missed the top price, but made good 3.95% return.
Trade Lesson: Buy breakouts.

Ashland Inc.(ASH) is a global specialty chemicals company, operating through five commercial units. Ashland Aqualon Functional Ingredients provides specialty additives and functional ingredients, largely derived from renewable and natural raw materials, that manage the physical properties of aqueous and nonaqueous systems. Ashland Hercules Water Technologies provides process, functional and water management chemistries for the pulp and paper, industrial and institutional, mining, municipal and marine industries. Ashland Performance Materials provides unsaturated polyester resins, vinyl ester resins, gelcoats, pressure-sensitive and structural adhesives, and metal casting consumables and design services for the construction, transportation, packaging and converting, and marine markets.

I went short ASH @15.99 once the $16.00 support was broken. Stopped out @16.31 with loss of -2.00%

Trade Lesson: Short breakdowns. However quickly stop loss out once previous high is broken.

Earnings Review: Seagate Tech, Talbots, SPX....

Positive Guidance

Federal Signal (FSS) said it now expects first quarter earnings of $0.01 to $0.03 per share. The company previously said it expected a loss for the quarter and the current consensus estimate is a loss of $0.07 per share for the quarter ending March 31, 2009.

Dress Barn Guides Above Estimates
Dress Barn Inc. (DBRN) said it expects third quarter earnings of $0.30 to $0.32 per share. The current consensus earnings estimate is $0.20 per share for the quarter ending April 30, 2009.

Seagate Technology Ups Revenue Guidance
Seagate Technology (STX) said it now expects fiscal third quarter revenue of $2.10 billion. The company's previous guidance was revenue of $1.60 billion to $2.00 billion and the consensus revenue estimate is $1.85 billion for the quarter ended April 3, 2009. The company also said it expects fiscal fourth quarter revenue of $1.90 billion to $2.20 billion. The current consensus estimate is revenue of $1.84 billion for the quarter ending June 30, 2009.

Kona Grill Sees Smaller-than-expected First Quarter Loss
Kona Grill Inc. (KONA) said it now expects a first quarter loss of $0.21 to $0.17 per share. The company's previous guidance was a loss of $0.29 to $0.22 per share and the current consensus estimate is a loss of $0.27 per share for the quarter ending March 31, 2009.

Inline Guidance

Harris Stratex Networks Narrows Guidance
Harris Stratex Networks Inc. (HSTX) said it now expects third quarter revenue of $150.0 million to $160.0 million. The company's previous guidance was revenue of $150.0 million to $170.0 million and the current consensus estimate is revenue of $159.6 million for the quarter ending March 31, 2009.

Tuesday Morning Guides Inline
Tuesday Morning (TUES) said it expects a third quarter loss of $0.17 to $0.15 per share. The current consensus estimate is a loss of $0.16 per share for the quarter ending March 31, 2009.

Negative Guidance

Talbots Sees First Quarter Results Below Estimates
Talbots Inc. (TLB) said it expects a fiscal first quarter loss of $0.52 to $0.47 per share. The current consensus estimate is a loss of $0.01 per share for the quarter ending April 30, 2009.

SPX Lowers Guidance
SPX Corp. (SPW) said it expects first quarter earnings to be towards the low-end of $0.75 to $0.85 per share with revenue of approximately $1.20 billion. The current consensus earnings estimate is $0.76 per share on revenue of $1.24 billion for the quarter ending March 31, 2009. For 2009, the company said it expects earnings of $4.40 to $4.80 per share on revenue of $4.90 billion to $5.10 billion. The company's previous guidance was earnings of $5.40 to $5.80 per share on revenue of $5.30 billion to $5.60 billion and the current consensus earnings estimate is $5.11 per share on revenue of $5.27 billion for the year ending December 31, 2009.

Bank Earnings Will Decide The Trend To Follow

What’s Happening In The Market Now..

• The market opened lower this morning ahead of key earnings expected later in the week.
  
• Also weighing on stocks is a potential bankruptcy filing from General Motors (GM). The U.S. Treasury Department is directing General Motors to lay the groundwork for a bankruptcy filing by June 1, even though the automaker has publicly stated it could reorganize outside of court, The New York Times reported on Sunday, citing an unnamed source.
  
• Investors will get a number of earnings results throughout the week, including reports from key financial firms. Financial companies had been among the hardest hit by the economic downturn and credit crisis, but they have also helped lead a rally over the past five weeks.
• Goldman Sachs earns $1.66B in 1st-quarter, surpassing Wall Street's estimates.
  
• Oil company shares could come under pressure, after Chevron (CVX) said it expects its first quarter 2009 earnings to be sharply lower than in the fourth quarter of 2008. Oil prices are down this morning after the International Energy Agency said it expects global crude demand to drop this year amid the worst worldwide recession in decades.
• Bankruptcies are surging despite law that made them tougher and more expensive
  
• Sectors starting the day out strong include managed health care, health care services, consumer finance and agricultural products while trucking, autoparts & equipment, real estate services and tires & rubber are down.
  

Stocks Most Watched Today
Chevron Corporation (CVX), Yahoo Inc (YHOO), Occidental Petroleum Corporation (OXY), Aetna Inc (AET) and Monster Worldwide Inc (MWW), Express Scripts Inc (ESRX), WellPoint Inc (WLP), Teck Cominco Ltd (TCK), Shanda Ineractive Entertainment Ltd (SNDA), Varian Medical System (VAR), SPX Corp (SPW), Nordstrom Inc (JWN), Logitech International SA (LOGI), Eaton Corp (ETN) and Buckle Inc (BKE)

Today’s News Leaders…
Goldman Sachs Group Inc (GS), Express Scripts Inc (ESRX), Apple Inc (AAPL), Amazon.com (AMZN) and Boeing Co (BA) top the lists of companies with news today.

Analysts Favorites…
Research in Motion (RIMM), Best Buy Company (BBY), Western Digital (WDC), Bristol Myers Squibb Co (BMY) and Zimmer Holdings Inc (ZMH).

ETFs and HOLDRs Watched Today…
iShares MSCI Emerging Markets Index Fund (EEM), Select Sector SPDR Energy Fund (XLE), iShares S&P 500 Index Shares (IVV), Vanguard REIT ETF (VNQ) and iShares Dow Jones Select Div Index Fund (DVY)

Tip of the Day…
Homework leads to profits. After you have learned all you can you still have to make a decision. You've done the work now trust your gut and get in or stay out. The guy on the fence never looses but he never wins either.

Source: MarketIntelligenceCenter.com