Thursday, January 10, we had three Stocks to Watch, two Extra Innings and four Around the Horn subscription trades on our radar. Of these, four were profitable, one was a loss on two separate entrys and four were no-shows.

Aflac Inc (AFL) was a Sinker short for Thursday’s Around the Horn subscription trade list. AFL turned out to be a stinker, however, with incredible volatility stopping us out twice. It did make for a good intraday play with a short off of mid-morning highs, however.

Aflac Inc (AFL), 5-Minute Chart


Lab Corp of American Holdings (LH) was a Fastball long for Thursday’s Around the Horn subscription trade list. LH was a beauty, triggering off the open, showing volitilty that stayed within our acceptable bounds of profit target and entry before zooming past the entry. Exit was on the hesitation at these highs and reversal.

Lab Corp of American Holdings (LH), 5-Minute Chart


W & T Offshore Inc (WTI) was a Fastball long for Thursday’s Around the Horn subscription trade list. WTI was as volatile as the rest today, with an entry in the morning that stayed above our stop loss level, but only traded up and around the 50% to profit target level before sinking back into our entry price. Our rule is to move our trailing stop to breakeven once the stock of interest has reached the 50% level, and on a day like today, we were careful to follow this. But as soon as we were out, seems like we were getting back in, this time to the profit target, with shares peeled off at this level and some at the reversal of highs.

W & T Offshore Inc (WTI), 5-Minute Chart


Covance Inc (CVD) was a Sinker short for Thursday’s Stocks to Watch trade list. These trades are meant to allow traders to have a little more discretion in their trading and depending on your trading temperament; there was money to be made in CVD all day. Below is one example, following our sinker rules. Off the open, CVD tested yesterday’s highs and failed. Entry was on the fall through yesterday’s close. Exit was on the reversal of this long bar down, which was plenty in a $90+ stock. Scalps could have been made from peaks to valleys or close to reversal all day, with the end of day ride worth the wait.

Covance Inc (CVD), 5-Minute Chart


Humana Inc (HUM) was a Sinker short for Thursday’s Stocks to Watch trade list. HUM took a little more time developing, which on a volatile day like today was just fine with us. After lunch HUM tested yesterday’s highs, then triggered an entry at yesterday’s closing price and without much fuss traded down a point.

Humana Inc (HUM), 5-Minute Chart


Extra Innings and Opportunities for Friday, January 11, 2008:

Everest Re Group Ltd. (RE), 30-Minute Chart


Humana Inc (HUM), 30-Minute Chart


Covance Inc (CVD), 30-Minute Chart


Baxter International Inc (BAX), 30 Minute Chart


Aflac Inc (AFL), 30-Minute Chart
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Julie Peterson-Manz is cofounder of TraderInsight.com. Email her at julie@traderinsight.com.