Watchlist 10/4/10

Caution seems to be the dominant sentiment among traders whose blogs and Twitter streams I follow as we go into the first full trading week of October, a month that has historically been messy for the market. While there remain plenty of attractive setups, uncertainty over the prospects of breaking and holding the 1150 barrier on the S&P and the consequent possibility of an imminent pullback to support levels has many  sticking to a short-term outlook.

As a swing trader — and one that is a little in the red on a couple of those swing plays — I'm hoping that there is a bit more juice to this rally before it corrects slightly, but I have also been careful to exit day trades at the end of each trading day where possible, as was the case on Friday.

Most of my focus this week will be on ALXA and JAZZ as I weigh up the best time to exit both those FDA run-up trades. ALXA's run has been checked by technicals and that large share sale and I may need most of the week to see if I can get closer to my trading goal of around 4.00.

Other stocks I'll be watching tomorrow...

CWTR - there may be a little more to this current up-trend seeing as it's sitting on the 200dma but the stochastics remain oversold so a period of consolidation is not out of the question. Keeping it on my radar, though

RAS - much talk of REITs being on the upswing and there's plenty of room between here and the next moving average line around 1.90

SIMG  - I'm long over $5

HERO - Hercules Offshore's chart continues to look great if it can just stay above 2.70/2.71

AKRX - Lots of eyes on Akorn, a stock I sold at break even for cash when the market was in trouble over the summer. I'll look to add of there's momentum above the 4.07 mark