Intraday's STALK SHEET for Friday, June 22 2001
Coming off a great day in which we not only recovered Thursday's losses but also put quite a few points on the board, the market closed hot and we're looking primarily on the long side early in the session, at least. Nonetheless, there is plenty of reason for caution amidst the earnings pre-announcement season. Networkers acted well Thursday and should see some follow-through today. Keep an eye on the semiconductor sector for a possible rally, given the two days of consolidation after a period of significant weakness.
During our research this evening, we noticed some divergence between various stocks in the same sector. We don't see that very often and it's another good reason to play it a little on the light side going into the close of a great week!
Steve, Deron, & Ed
General Partners
Intraday Investments
intradayinvestments.com
Also, visit us on our Silicon Investor Thread!:
Subject 51208
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BRCM, Broadcom, Long > 34.74, Semiconductor Sector, $SOX.X
This stock rallied nicely on good volume. With another good volume day this one should break above 40 m/a on the daily.
JDSU, JDS Uniphase, Long >11.13, Telco Equipment, $XTC.X
Stock closed near high of the day on good volume. Should follow through nicely today.
GLW, Corning, Long >15.00, Networking Sector, $NWX.X
This stock saw great volume on Thursday and closed near the high of the day. Once it breaks 15.00 (200 m/a on 15 min chart), it should see 16.00 in a hurry (fill the gap).
A, Agilent, Long > 29.65, Computer Hardware Sector, $HWI.X
Must have strong volume to break out. Thursday's volume lighter than what is needed to surge ahead. Has 200 m/a on 15 min chart as major resistance and for this reason we must watch the volume closely. Agilent is not likely to go past 30.20 (200 m/a on 15 min chart) unless it sees good volume.
IBM, International Business Machines, Short < 110.95, Compter Hardware, $HWI.X
IBM has formed a distinct head and shoulders pattern. If it breaks the neckline at 111.00 it only has a minor support area at 110.45 before filling the gap down to 105.00.
SUNW, Sun Microsystems, Long > 14.85, Computer Hardware, $HWI.X
If SUNW sees good volume and can break above 14.85, it should see 15.40. It just completed a head and shoulders pattern to the downside and has formed a doji. SUNW looks primed for a bounce.
DO, Diamond Offshore, Long > 35.20 or on a low volume pullback/gapdown to the 34.50 to 34.70 range., Oil Service Sector, $OSX.X
This sector has been beaten to death and is showing the early signs of reversal. DO rallied very strongly into the close, has formed a "chopsticks" candle pattern at the bottom of this move and has swept the stops out just below 34.50. May end up a Swing Play. The sector and the market must be strong. If they both turn, this one should move first because of its relative strength to the sector.
BBBY, Bed Bath & Beyond, Short < 30.30, Retail Sector, $RLX.X
This puppy gapped up into a double top and then fell off a cliff Thursday. If it loses 30.30 it should see Thursdays lows near 29.00.
CC, Circuit City, Long > 17.50, Retail Sector, $RLX.X
Just broke above big resistance of 17.34 on high volume and closed almost at high of day. Should see follow through Friday.
HD, Home Depot, Long > 51.45, Retail Sector, $RLX.X
Needs strong volume to break above this resistance
AMCC, Applied Micro Circ., Long > 14.63, Semiconductor Sector, $SOX.X
Formed a doji star and has been consolidating for 2 days after a major multi-day selloff. Needs strong volume and a cooperative market.
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