Week of June 26

Market Overview

The key event this week is Mr. Bernanke's discussions on Thursday. It seems that the markets are waiting to see what happens there--if the news is positive, then I expect we'll have seen the end of the bear's run.

If however the news is negative, and Bernake "hints" of (or worse states) more interest rate hikes in the future, the markets will likely drop. Even if the news is neutral, the markets may likely react negatively. Certainly an interesting week is coming up!

Stocks to Watch

The stocks we're watching this week include:

• BEN (Franklin Res. Inc.) - this is a short trade. Currently in a descending channel, it's bounced off the top of that channel and is headed back down. This may be a short-term trade, as it may move up again as it approches the bottom of the channel.
• OII (Oceaneering Intl. Inc.) - a nice trending chart, even after it's split on 6/19. Currently breaking resistance and setting a new high. A nice long entry.
• R (Ryder System Inc.) - another nice trending chart that has recently broken resistance. Expect the trend on this one to continue up
• SHLD (Sears Holdings Corporation) - this is one we're watching for a confirmation and a move back to the upside. While not a trade yet, this one is poised to make a move--if it does, it'll be a nice long entry. If it doesn't and it breaks support at $152, look for a short entry.