Intraday Investments Stalk Sheet for Thursday, June 28, 2001
Ready for the volume and volatility to return to the markets, Thursday’s Stalk Sheet contains a rather varied mix of long and short plays in various sectors. Remember to program these alerts before the market opens, but we do not recommend entering plays simply because an alert gets triggered. As always, volume, volatility, and overall market strength or weakness are always determining factors as to whether or not we enter a particular Stalk Sheet play. Never forget that there is “no magic bullet” in the trading business!
General sector notes:
Looks like we want to be short the Oils tomorrow. The $OIX.X lost support today in a big way and looks like it is headed for the 200 m/a on the daily.
We will consider selling short the Banking Sector (BKX) below 893.69 either by selling calls or buying puts. The Broker Dealer Sector (XBD) also closed poorly on Wednesday.
We will consider shorting the BBH tracking stock or selling calls for the Biotech sector if the BTK trades below 70.30.
Transports and Utilities were both strong on Wednesday and we will be looking for upside follow-through on Thursday.
Potential Longs:
A, Agilent, Long >30.50, Computer Hardware, $HWI.X
Closed near high of the day on solid daily volume considering it was an FOMC day. Needs strong volume to break out. Consolidating nicely for 6 days.
LXK, Lexmark, Long > 63.20, Computer Hardware, $HWI.X
Broke out of resistance on Wednesday with good volume. Above 63.20 resistance, LXK should see 65.00.
PALM, Palm Inc., Long > 6.50, Computer Hardware, $HWI.X
Tried to break out today on huge volume. Will need big volume again to get above 6.50.
PMTC, Parametric Technology, Long > 12.47, Software Sector, $GSO.X
Above 12.47 this stock breaks the 200 m/a on the daily, Wednesday's high and a resistance zone established on June 7th and 8th. Will need strong volume to continue to rally.
RATL, Rational Software, Long > 28.30, Software Sector, $GSO.X
Above this price RATL should be able to take out the 28.77 high of May 21st. This is a breakout play and we will need strong volume and a cooperative market to head to new highs above this consolidation range.
Potential Shorts:
AXP, American Express, Short < 38.13, Banking Sector, $BKX.X
With the Dow and S&P looking like they want to break down and follow through with the head and shoulders formed on the daily charts, AXP should follow through. Closed near low of the day. Should test April's lows.
FTU, First Union, Short < 33.80, Banking Sector, $BKX.X
Closed near the low of the day and the sector looks ready to drop. Quite a reversal off the morning highs.
STI, Sun Trust, Short < 64.56, Banking Sector, $BKX.X
Close at the low of the day and looks primed to lose support after 4 days of consolidation.
AMGN, Amgen, Short < 62.50, Biotech Sector, $BTK.X
broke through the neckline of a head & shoulders pattern and has been holding support at 62.50 by a hair. AMGN is riding the neckline of a previous inverse head and shoulders as support. We'll whack this one below 62.50 with a target of about 60.00.
CORR, COR Therapeutics, Short < 27.80, Biotech Sector, $BTK.X
2 days consolidation on the neckline of a head and shoulders. Low volume rally today. If the market sells off this stock will drop hard below this entry. If the market rallies we may consider this one long over yesterday's high.
AAPL, Apple Computers, Short < 23.00. Computer Hardware, $HWI.X
Wednesday was first reversal day after multi day run up. Sold off today on increasing volume.
ABT, Abbott Labs, Short <50.00, Drug Sector, $DRG.X
Sold off in a big way Weds. If it loses 50.00 it will fall hard.
FRX, Forrest Labs, Short < 70.90, Drug Sector, $DRG.X
Stock has consolidated for 4 days now and closed weak today. Has lost support on 5, 15 and 60 min time frames. Looks primed to drop.
PFE, Pfizer, Short < 41.42, Drug Sector, $DRG.X
PFE is below support on 5, 15, and 60 min charts and it closed near the low of the day with the Dow closing below 10,444.
XLNX, Xilinx, Short < 38.65, Semiconductor Sector, $SOX.X
Earnings warning sent this stock into a tailspin today. If it breaks Wednesday's low of 38.65, we will take it short.
Deron, Steve, and Ed
General Partners
intradayinvestments.com |
