Real Money Charts (March 28, 2008)
The charts covered in Friday’s Real Money column are: EMC, XLE, CSR, STI, CNB and MANT 
EMC has been in a steady slide for several months now and it just can’t seem to find a bottom. In January and February, it seemed as if there was sufficient demand at $15 to halt the decline. But over the past few weeks, that demand has been satisfied and there is still more selling. I’d just stay away from this until it breaks back above the 50-day moving average.
I’ve circled the past several highs and lows. The green circles highlight the series of higher highs and lows, while the last two red circles show the break of that trend — a lower low and lower high. While we all might be attached to the long energy trade, this chart makes that bias suspect. I’d stay away from the XLE unless the bulls can push it back above $80. Sure you’d miss some of the move by waiting, but the current environment favors protecting your capital…not trying to catch every bottom.
CSR is fairly thinly traded, averaging around a quarter of a million shares each day. But yesterday’s breakout above the 50-day moving average was on twice average volume. But after a 14% move yesterday, buying now is risky. I’d rather let this buying spree run its course and buy on a pullback.
STI has been trending lower for quite a while, though the volatility has increased since January. With $54 as support, dip buyers might find this attractive. As for me, I think there are better trades out there — if only because you’ll probably be able to buy STI at this price, or even lower, for quite a while.
CNB has broken below prior support on above-average volume. The stock is in a downtrend and I just wouldn’t be buying this stock now. The value might be compelling…but just imagine how compelling that value will be when the stock trades in single digits.
MANT has been on a tear for the last week, and finally popped above resistance. If you’re long, I’d suggest watching $46 carefully. Assuming prior resistance becomes current support, then we should expect any dip to $46 to be met with buyers. If that doesn’t happen, I’d sell.
Be careful out there.