New Positions - MSFT, WM, AEA

Happy Weekend Everyone! I wanted to go over a few positions that I recently took.

On Nov 22nd, I wrote about a potential buy point in Microsoft around $24.55.  I took this trade in a small position, since the overall market was acting pretty sketchy during the Thanksgiving week.  It turns out that MSFT bounced right off its lower trend line and recovered a bit along with the overall market. My target is around $26.50 for around 9% gain.  We'll see if it gets there.  If things turn to the downside, I'll be stopping out below the bottom of the lower trend line.  It looks like there might be a pull back after last week.  Hopefully, it consolidates around $25 and moves upward to the top of the trend line.

There is a possibility that MSFT breaks the top trend line and accelerates through lateral resistance into the $30s.  We'll see what happens if we get there.

I also took a swing position in Waste Management at $30.25 on Nov 21st as I described in my prior post.  I got a bit worried as my position dipped briefly below $30, but rebounded off the lower trend line. Currently, its up against lateral resistance and the 50 dma. If it breaks through this area, we're looking pretty good for hitting my target, around $34, which is around the upper longer-term down trend and 200 dma. My stop is below recent lows rising trend line, around $29.50.

Lastly, I took another small position in Advance America (AEA) at $8.55 on Dec 1st.  I don't know much about the company, but the chart looks pretty sweet.  Its breaking some lateral resistance after five months of trading in a range. There is also a clean uptrend line from the lows in April.  My short term target is $10.  Since its a small position, I have a pretty loose stop below the rising trend line around $8.

Here are a few other charts that I'm keeping my eye on.

Trade smart & God bless!
JP