INTRADAY's STALK SHEET for Tuesday, June 12
Today showed the power of using the STALK LIST, as we walked away with 13 points without risking more than 75 cents on any individual trade, getting the new week off to a great start.
We distributed the Master Stalk List today, and suggest you integratge it into your quote screens, minders, and chart-scanning lists (organized by sector, of course) to orient yourself to looking at the market by sector. Initially, we suggest you focus in particular on the 77 "hot stocks" (identified by an asterick) in the sector model. The majority of our intraday trades will be in those issues.
When a trending market environment returns (like it did today), the daily stalk list will become even more useful, allowing just to jump into stocks BEFORE they trend on the day as one of the first on top of the intraday or swing trend. It is also important to familiarize yourself with the sector model (emailed earlier today) and to scan the daily charts of those (currently 277 stocks & HOLDRS) in the evening, in order to increase your confidence and understanding in the trades that setup the next day.
Many good "Intraday Innovations" will flow from the Stalk Sheet and the Master Stalk List. For one, we'll be scanning to detect abnormally high trading volume flows starting very early in the trading session in order to steer you into the right sectors BEFORE the “meat of the move” occurs. In coming weeks we’ll be providing free educational sessions covering what we believe you need to know about (gasp) the FUNDAMENTALS behind the companies and the sectors in the stalk list to enhance your trading savvy and performance. The first mini-seminar on this topic will be held in July (no charge for monthly and quarterly members).
There are more setups than you can shake a stick at on both sides of the market tonight. Therefore we’ll be keying off reading the futures, sectors, internals/volume flows and our overall judgment about the market’s trading action tomorrow in selecting our entries. With so many good setups beckoning, we will look to be very selective in our trading tomorrow. Set your alerts, and be READY to strike!
Steve, Deron, & Ed
General Partners
Intraday Investments
intradayinvestments.com
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Symbol --- Company --- Sector --- Price & Comments
POTENTIAL SHORTS
$NWX.X Networking Index Short
Breaking below support of recent lows on daily; @$NWX.X < 402.65 we will look to buy the June 400 puts
GLW Corning Short Stock ready to break to new 52-week low (<18.30) $NWX.X confirms. No support left underneath current levels; futures confirming
ONIS ONI Systems Short <32.90 with a good intraday entry pattern. Stock now below 20 and 40 MAs on daily; will serve as resistance. $NWX.X, futures confirming
SPY Short <$125. The SPX looks like it could be setting to break it’s neck(line) in a classic a head-and-shoulders formation. Wait for confirmation,
this one could get tricky.
JNPR <$33. $NWX sector. We’ll be watching JNPR for a continuation move down. Be warned, this stock competes with NVDA for the “devil stock” title – it can turn back up on a dime. But after issuing an earnings warning last week, JNPR is in some serious trouble with institutional investors. Watch $NWX, CSCO, rest of sector for confirmation, plus realtime comments/analysis in the room. We don’t want to ‘overstay our welcome’ in shorting this one!
EMLX <$35. Network-attached storage sector. EMLX reversed down Monday after filling a gap from May 30, but after forming a rising wedge on declining volume, it is precariously perched to fall into a gap from May 7 which could send it to the $31 area in a hurry. Watch the other stocks in this sub-sector, the NWX, and the futures for confirmation.
LVLT <$8.50 We’ll consider entering a swing-short in Level 3 once it trades below $8.50. This puppy is in trouble, Monday it took out a critical swing low from April 4. Some patience will be required, but it can be traded with size!
PROX < $13.50 Swing trade, patience required (target $10 area Wireless LAN subsector. If we enter, we’ll be looking to manage the stop to breakeven ASAP then we’ll give it some room to work.
NVDA “the devil stock” short <92.35. $SOX (Semiconductor/graphics). This high-flyer could be “setting up for Carnage” when it takes out Friday’s expansion range bar low, and completes a Double-top formation. Just be careful that you don’t arrive too early to the shorting party!
EBAY <$62.30 $IIX.X Internet sector. Double-top failure, price trendline break, declining volume trend, sector divergence, etc etc. When they finally hurt EBAY, it’s going to be very ugly.
RNWK <$11.45 $IIX.X Monday told the story – more carnage to come.
LEH <$68.00 $XBD.X Brokerages. Monday, many Brokers “broke”… LEH is setting up to take out it’s rising 200MA on the daily; if it triggers and we find a good entry, just watch the futures and don’t get caught in an intraday reversal up.
THC <$47.30 $HCX.X Healthcare. Potentially a failed breakout in the works. Stay on your toes.
LOW <$72 $RLX.X Retail. Potentially a failed breakout, “Turtle Soup” reversal which would likely take it to $69 area.
MRK <$71.70 $DRG.X Drugs. MRK is in a downtrend and $72 area is major support. Look to $DRG.X and the rest of the Drug stocks for confirmation. We’ll continue
stalking $DRG.X and may end up taking the PPH HOLDRs short for a swing.
POTENTIAL LONGS
BBH Biotech Holder Long >133.50 Pullback to lower channel of uptrend. Four consecutive down days into support of rising 20 MA on daily. $BTK.X
$BTK.X Biotech sector Long Pullback to lower channel of uptrend. At $BTK.X > 612.40 we will consider buying June 600 calls on the sector once alert price is triggered
AMGN Amgen Long > 67.10 Pullback to rising 20 MA on daily Stock pulled back to lower channel of uptrend line.
$BTK.X Biotechs.
HGSI Human Genome Long >70.10
Pullback to rising 20 MA on daily; pulled back to lower channel of uptrend line. $BTK.X Biotechs
CHIR Chiron Long >49.25
Pullback to rising 40 MA on daily; four consecutive down days into support of rising 40 MA on daily $BTK.X
GENZ Genzyme Long >54.25
Pullback to rising 20 MA on daily; four consecutive down days into suppor of rising 20 MA on daily. $BTK.X
MLNM Millennium >$36.70 Biotech
Long Potentially a pullback to lower channel of uptrend
MEDI Medimmune Long >40.30
Pullback to lower channel of uptrend; four consecutive down days into support on daily. BTK.X Biotech.
GILD Gilead Long >$50.10 Pullback to rising 40 MA on daily. Biotechs $BTK.X
PDLI Protein Design Long >$80.35 Pullback to 200 Ma on daily; four consecutive down days into support of 200 MA on daily. $BTK.X Biotechs
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