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Three Stocks for Your Summer Portfolio


Demark setups looking promising.

Here are today's revelations from the DeMark genie, when he isn't busy scaring children and throwing stones.

Calgon Carbon (CCC)
At long last, the Counntdown Buy signal predicted by the "qualified TDST Down" break on May 11 has been completed. With both the TD Prop Exhaust level at $10.45 and 50% absolute retracement support at 9.50, the long-side risk/reward for this "water play" looks as interesting as it has been in many moons.

For currency-inclined Minyans, the Eur/CHF cross has registered a 9-13-9 Buy signal, but the ongoing intervention of the Swiss Central Bank to weaken the CHF leaves me less than enthusiastic about getting involved either way.

Also intriguing are 3 names whose DeMark patterns haven't completed yet, but are very close to doing so:

1. American Eagle Outfitters (AEO)
Currently on count 7 of a Buy Setup, it's scraping along the TDST line. What interests me is the obviously tight risk/reward, and the opportunity to get long a specialty retailer with a pristine balance sheet, while I still carry my short positions in the Spider Retail ETF (XRT).

Please do see the weekly chart, however, which isn't at all positive.

2. Gen-Probe Inc. (GPRO): A setup almost identical to AEO, both on a daily and weekly basis. The appeal is the exposure to an area of healthcare -- if exposure need be had -- which theoretically should be relatively immune to the socialization of the sector.

3. Varian (VAR): You can find my now-dated "fundies" history with this name in the 'Ville's archives, and much of that basic thesis still applies. Technically, the weekly shows Prop Down and TDST support relatively nearby, but while the Countdown Buy was voided by the completed Sell Setup, the current Buy Setup is only on count 3. As in AEO and GPRO's case, the daily Buy Setup is on count 7 and fairly close to TDST support.

On the short side of things, the daily chart of IntercontinentalExchange Inc. (ICE) absolutely begs to be shorted, but the oversold state suggests waiting for a bounce or creating a synthetic position going short out of the money calls and long puts. The notion that this is an obvious target of the "kill all the dirty speculators" mantra is perhaps too obvious, but no less appealing to our populist lawmakers.

And from the more mundane and less controversial world of haircare products (as if I had any reason to know anything about that), Helen of Troy (HELE) is pennies away from registering a perfected Sell Setup right at TDST resistance. The obvious question is whether we might witness a bullish qualified break of the TDST line, turning the chart bullish. The obvious answer is that we don't have to guess but rather we can let the indicators dictate the direction with excellent risk/reward either way.

Have a great day, and a great week!
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No positions in stocks mentioned.
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