Washington Mutual (Pink: WAMUQ) – Investors wait and watch with bated breath; still, no concrete decision has been made on WaMu’s court settlement or the reorganization plan. Aurelius Capital Management LP said the delay in implementing the deal has drained money from creditors, and that JPMorgan should contribute more to the settlement (Read more).

As court patrons sit around discussing the future of commons and preferreds, investors are scrutinizing every move WaMu makes. This could be the time to start placing your bets before Scotty potentially beams this stock to the MOTHERSHIP!

The chart is now starting to set-up nicely and WaMu doesn’t seem like it will get much cheaper here in the near future ceteris paribus (all things constant). Still, the 50 day moving average is the safest area for investors, but traders’ paradise could be upon us again soon.

Make sure you sign up for my free email alerts! You could have made a possible 23.8% on my SHMX alert Tuesday morning and 26.5% on JCOF on Monday!

The chart shows:

• WAMUQ is starting to threaten the $.124 resistance again and perhaps this time as it gains steady momentum could break through.
• The RSI is starting to tip up into the buy zone at almost 52 and considering it was overbought for about 2 weeks there is plenty of room for WaMu to stretch its legs here.
• The MACD is showing a potential golden cross, though a little ways off; the possibility is there nonetheless.
• The ADX just crossed again and is starting to show marginally more life than over the past couple trading days. Watch carefully for more volume to start coming in soon.

The Bottom Line

WAMUQ – The indicators are starting to shape up nicely and even though the ever-changing court news is slowly trickling out, whilst engaging myriad of investors’ observations; WAMUQ could run here on technical indicators alone. Especially since investors are patiently waiting for that once in a lifetime opportunity to hit it big… and I mean REAL BIG! A favorable reorganization plan for common stockholders could send this stock to heights dwarfing these recent gains. Don’t get stuck chasing WaMu when it starts moving because it is hard to get shares when it rallies. Traders must be smacking market buy and there we are 5 cents later with an anxious befuddled look. As always, don’t invest more than you are willing to lose because nothing in life is certain except uncertainty itself.

Don’t forget to sign up for my free email alerts! You could have made a possible 23.8% on my SHMX alert yesterday morning and 26.5% on JCOF on Monday!

Good Luck,

Ian Decker

Disclosure: No Positions

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