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Stock Chart Scan 03/11/2011

Ford Motors (F) is testing 2-year support after making a recent high around $19.00 during earnings season. Since its high the stock has been hammered on concerns of slowing growth in Chinese markets and stagnant US markets. Today’s candle and low at $13.85 represents a key support level as shown on the chart above.

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F5 Networks (FFIV) March 2011 105.00 PUT (2) @ 1.75

F5 Networks (FFIV) gave us a headfake today as the market moved lower on the US jobs report. Testing a major trendline, F5 found support and is now moving back up in a tough tape. We expect strength in F5 Networks going forward until that major support line is violated to the downside.

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Human Genome Sciences (HGSI) Long Straddle

The FDA is set to review a drug made by Human Genome Sciences (HGSI) named Benlysta for treatment of lupus, a chronic inflammatory disease. In clinical trials the drug demostrated what was characterized as “marginal” effectiveness – which is more than enough for the desperate needs of lupus patients.

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DTE Energy (DTE) APR 2011 $45.00 Call (2) @ $2.70

Michigan based energy company DTE Energy (NYSE: DTE) has seen its stock price base between $44-$47 per share this past year. Recent trading activity should generate more excitement as the stock broke above $47.55 with higher volume. If we see follow through into next week DTE could make a 3 point run and a move toward blue skies.

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KongZhong (KONG) March 2011 $7.50 Calls (5) @ .75

KongZhong (NASDAQ: KONG) made a huge move up after an upbeat earnings report with strong guidance. The Chinese wireless application company saw its stock rise 15% breaking above $7.80 on a huge spike of volume. With a float of just 7-million shares KONG may have another leg up in coming weeks.

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Sina Corp (SINA) March 2011 $80 Put (1) @ $3.64

Speculative growth companies like Sina Corp (NASDAQ: SINA) are especially prone to sharp sell offs during periods of overall market weakness. These high beta stocks are even weaker after gap reversals. Sina met up with resistance at the first of two small gap downs made in late February.

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LDK Solar (LDK) April 2011 $12.00 Call (3) @ $3.20

Solar earnings reports have been largely bullish with the exception of First Solar (FSLR) last week. The charts of some of these solar stocks look attractive for speculative money. LDK Solar Co (NYSE: LDK) is no exception, showing a clear cup & handle formation on a 4-month chart. The pattern has a $15.00 neckline and support at $13.50, with 31% of the float held short.

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Trina Solar (TSL) January 2012 $27.50 Strike Call (1) @ $7.00

While we remain skeptical of the entire alternative energy sector in the near term, the chart pattern formed by Trina Solar (NYSE: TSL) proved irresistable. The China based manufacturer of photovoltaic (PV) modules worldwide has a chart pattern that indicates heavy accumulation taking place. A “mini” cup & handle formation within a larger ascending triangle formation seems like a good place for a speculative investment.

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Dean Foods (DF) June 18th $8 Strike Call (2) @ $2.80

Dean Foods (NYSE: DF) has been hit hard over the past few years. The dairy product manufacturer has seen its stock price decline from the mid $20′s to just $10.40 as of today’s close. While the dairy industry has been hard hit with high input costs and slim margins, comments made during this quarter’s earnings release indicate stabalization.

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Spartan Motors (SPAR) 250 Shares @ $7.10

Despite a quality earnings release (SPAR) was down more than 8% and closed near session lows. With Spartan showing such a beautiful multi-year breakout we simply couldn’t resist re-entering on the pull back. Watch (NASDAQ: SPAR) as it attempts to backtest support near $6.75.

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