Intraday Investments Stalk Sheet For Monday, July 2, 2001
The last hour of trading on Friday was surely interesting. It does appear as if a lot of stops got “swept” during the bizarre final hour of trading. I would have hated to have had physical stops set and gone home for the weekend early on Friday before the final extended hour of trading.
Don’t expect to see much volume this week in the market with the 4th of July holiday splitting the week in half. Many traders will be on vacation or just waiting for the week of July 9th to begin reentering the market. With that said, here’s our picks for Monday July 2, 2001.
LONGS:
U, US Airways, Long >24.90, Transportations Sector, $TRX.X
Volume is increasing and ADX is on the rise. RSI is diverging significantly from the price of the stock on the daily chart. Volume also increasing. 24.85 – 24.90 range has been tested 3 times in the past month. The 4th test should be the charm.
BAC, Bank of America, Long >60.45, Banking Sector, $BKX.X
This stock lost support on Friday by selling off below a 3 day consolidation range but then rallied back to form a doji star and close above Thursday’s close on the best volume day in 5 days. This price activity is bullish and if BAC breaks above 60.45 it should test Thursday’s high of 62.22 where we will look to exit unless the stock were to break above and hold 62.22 on HIGH volume. Above 62.22 BAC could test the highs of November 1999 near 67.50 (see weekly chart) since this would constitute a breakout to a new high of bull run that began last December and would be the projected target of an inverse head and shoulder pattern that began forming 12 months ago.
SBL, Symbol Technologies, Long > 22.30, Wireless-Lan, $XTC.X
This stock broke out on Friday only to fall back into a 9 day consolidation zone at the close. It’s difficult to know if this price action had anything to do with the problems on the Nasdaq on Friday. SBL pulled back to a 50% fibo retracement on the 15 and 60 min charts and has good support in this area. With good volume and a cooperative market SBL should be able to break resistance ant 22.30. There is resistance above at 22.85, 23.00 and 23.40.
PROX, Proxim, Inc, Long >13.28, Wireless-Lan, $XTC.X
Stock closed just below a key resistance on Friday. Bad earnings news is already behind this stock. With good volume, this one should see 14.00.
AETH, Aether, Long > 8.88, Wireless-Lan, $XTC.X
Stock will need better volume than it saw Friday to continue this rally. My big concern is the decreasing volume. With good volume, above 8.88, the next resistance is 9.23 and then 9.80.
NXTL, Nextel, Long > 17.60, Wireless-Cellular, $XTC.X
Saw great volume on Friday and closed near the day’s high. Will need continued good volume to get past resistance at 17.60. Above here NXTL should see 18.00 and above 18.00 we could fill the gap to 19.00.
ABS, Albertsons, Long > 30.20, Retail-Grocery, $RLX.X
Great volume on Friday and closed near the high of the day after a failed sell off. Looks ready to rally after 17 days of consolidation.
CC, Circuit City, Long > 18.00, Retail-Electronics, $RLX.X
Closed at high of the day on very strong volume. Above 18.00 constitutes a break above the 200 m/a on the daily. Needs good volume or this could be a double top (false breakout).
SHORTS:
FITB, Fifth Third Bancorp, Short < 60.00. Banking Sector, $BKX.X
Below 60, FTIB loses support and is likely to see 59.00 in a hurry. 60 also represents a clear trend line break. Ideally, we would want to see strong volume and a weak market .
GPS, The Gap, Short <29.00, Retail –Apparel, $RLX.X
We must be careful that this is a true break and not just a sweep of the stops since this is a strong support area. The stock closed at the low of the day just below the 200 m/a on the daily. Could easily see 28.00 and then 27.00.
HD, Home Depot, Short < 46.55, Retail, $RLX.X
Sitting right on Fibo support at lows of current 4 day trading range. Late Friday trading showed
LOW, Lowes, Short <72.50, Retail, $RLX.X
Sold off and closed near low of the day on Friday. Does have Fibo support here buy the stock has broken its trend line and has broken below the rising 20 m/a on the daily. Should see support at 71.50 and 70.50.
SBUX, Starbucks, Short <22.60 or on a light volume gap up, Retail, $RLX.X
This stock is rallying into a double top on light volume compared to first part of double top established on 6/21. This could turn out to be a swing trade but need confirmation of price reversal. This is a Higher Risk trade.
Trade Well Today!
Ed Balog, Steve Bell & Deron Wagner
General Partners
intradayinvestments.com |
