Stock Picks - TELK UFPI 041707

Here’s two stock picks I’m trading online today. TELK- Telik, Inc., and UFPI - Universal Forest Products Inc., were gapping stocks this morning. I’m guessing TELK will be playable in the coming weeks. I’m currently in the TELK trade using the 60-minute chart. It may get stopped as I type. The 4th bar had a range from 6.75 to 6.84. That gives the trade a risk of a dime after entry. A stop is placed under 6.75, and targets of 2R for a 1/3, 4R for another 1/3, and let the rest ride, are set.

edit: I was stopped before posting this, but will keep it on the radar for another entry, possibly on the daily chart.

I should have probably tried UFPI long initially for a bounce, but didn’t. Again, I took a trade using the 60-minute chart. A short trade triggered under the 5th bar of 49.67. This stock has large range days, which is attractive as a trader. UFPI caught the longs on the wrong side with the hard gap down open. The stock has been strong all morning, but stopped at 50 day moving average resistance. I’m thinking it won’t clear it, so have my stop there on the hourly at 50.9. I’ll look for an average of 2R for the trade. Moving averages on most of the time frames are close to flat. It would be better if they were pointing down.