Intraday Stalk Sheet for Thursday, June 21, 2001
When using our Stalk Sheet, remember that when we are wrong with a particular idea, the benefit of sticking to the alert price entries is that there is no harm done if a sector or individual stock goes the opposite way we expect because we won't be in the sector in the first place. An example of this was our call to short the Biotech sector once it lost support on Wednesday. However, this never happened because the sector rallied strongly on Wednesday and did not follow through to the downside as we had anticipated. But the point is that there was no harm done because none of our entry price alerts were triggered to short in the Biotech sector because of the strength that was present. So remember to honor those alert entry prices!
The Dow closed today in the middle of a 4 day trading range that spans from 10,563 to 10,741. On a positive note, the Dow did close above its 200 m/a on the daily chart. The Dow needs to break Wednesday's High of 10,702 in order to power forward. Although the Dow is caught in the middle of a trading range, the RSI has formed a double bottom at an extreme reading of 5 and is turning upwards. This makes me lean toward a rally.
In the Nasdaq, although the Networkers still have not reversed, the Semis actually formed a bullish candle on the daily chart by opening at the high of the day, selling off significantly, and then rallying back to close at the high of the day again. This is typical of the price action we see at the beginning of a trend reversal, to the upside in this case. Therefore, we will be closely watching this sector for strength on Thursday, which will likely aid in pulling the Networkers along with it.
Potential Longs:
TXN, Texas Instruments, Long > 30.25, Semiconductor, $SOX.X
Like the reversal bar on the daily today, as well as the high volume (strongest volume in 7 days). Will look to enter > 30.25, which signifies a break above both Tuesday and Wednesday's closing prices. Also about ready to break above its 200 MA on the 5 min., which will serve as support once it does.
CTXS, Citrix Systems, Long > 30.50, Software, $GSO.X
After attempting to break its resistance of $30 three times within the past two months, it finally closed above 30 on HIGH VOLUME today. This indicates the breakout is likely to hold this time due to increasing volume and it being the fourth attempt.
RIMM, Research in Motion, Long > 28.25, Computer Hardware, $HWI.X
Needs to break 200 m/ on 60 min chart and hold on solid volume.
GTW, Gateway, Long > 15.50, Computer Hardware, $HWI.X
Must break above 15.50 on strong volume since this stock has a lot of resistance between 15.75 and 16.00. Without strong volume to fuel this trade, it probably won't break 15.90.
LXK, Lexmark, Long > 60.00, Computer Hardware, $HWI.X
Need strong volume to carry this one above 60.00. Lexmark closed at the high of the day on increasing volume...a very good sign.
XLNX, Xilinx, Long > 42.60, Semiconductor Sector, $SOX.X
Has a good deal of resistance to get through so it will need strong volume to power above 200 m/a on the 15 min chart.
INTC, Intel, Long > 27.70, Semiconductor Sector, $SOX.X
As with all of the beaten down stocks, INTC need good volume to break resistance.
BRCM, Broadcom, Long > 33.25, Semiconductor Sector, $SOX.X
Needs to break above 200 m/a on the 15 min chart on good volume and a cooperative futures market.
Potential Shorts:
SGP, Schering-Plough, Short < 39.80, Drug Sector, $DRG.X
This stock has consolidated for 4 days just above this critical support level. RSI not showing oversold. Sector must be weak for this one to fall however.
AHC, Armada-Hess, Short < 81.89, Oil Sector, $XOI.X
81.89 is a key Fibonacci support level. This stock closed near the low of the day on high volume. Should see follow through on Thursday.
P, Phillips Petroleum, Short < 59.00, Oil Sector, $XOI.X
59.00 represents the 200 m/a on the daily chart. Below here the stock should fall hard.
Deron, Steve, and Ed
General Partners
Intraday Investments
intradayinvestments.com |
