Stalk Sheet for Tuesday, July 3, 2001
The market should see light volume today before the 4th of July holiday. The key to success in this type of environment is to stay nimble. If the trades are not there then don’t force it. The other key is to follow the volume. Relative strength without volume is a fools game. It’s just too easy to get whipsawed.
The Oil and Oil Services Sectors are showing signs of being over sold and are due to reverse. As always though, wait for price and volume confirmation.
Longs:
TX, Texaco, Long >67.90, Oil Sector, $XOI.X
Closed near the high on Monday on solid volume. Stock has been consolidating between 65.00 and 68.00 for 3 days after a major sell off. Will need good volume to rally further.
UCL, Unocal Corporation, Long > 34.40, Oil Sector, $XOI.X
The stock needs to rally past the 200 m/a on the 15 min. chart to be in play. As always, solid volume is key.
TOY, Toys R Us, Long > 25.00, Retail, $RLX.X
Formed a doji star today after 7 straight down days. Closed near the top of its trading range for the day. Will see resistance at 24.75 – 24.80 before getting to 25.00. Above 25.00, next resistance is 25.40.
BMY, Bristol Myers Squibb, Long > 53.75, Drug Sector, $DRG.X
Sector rallied nicely today after selling off heavily over the past week. With solid volume, above 53.75, BMY could see 55.00
FRX, Forrest Labs, Long >73.46, Drug Sector, $DRG.X
Minor resistance at 74.00 then bigger resistance at 75.00.
MRK, Merck & Co., Long >65.00, Drug Sector, $DRG.X
Monday was the first reversal day after 7 straight down days. Above 65.00, MRK should see 66.00.
ELNK, Earthlink, Long > 15.10, Internet Sector, $IIX.X
Will need strong volume to break 15.10 since this stock is rallying into the bottom of a broken trend line. On a light volume gap up, we may reverse and go short this stock.
Shorts:
EMLX, Emulex, Short <39.41, Network Storage, $NWX.X
Stock broke its trend line on the 15 min chart and is showing signs of getting top heavy. Below 39.41 should see 38.80. Below 38.80 may actually be the better play. If EMLX breaks 38.80 it should see 37.00.
THC, Tenet Healthcare, Short < 50.55, Healthcare , $HCX.X
Closed near the low of the day on Monday after forming a double top. Formed double top on decreasing volume after trend line break and has broken new trend line. Looks primed to fall.
STJ, St. Jude Medical, Short <60.00, Healthcare, $HCX.X
STJ tried to rally only to fail at the 200 m/a on the 60 min and close near the low of the day. Below 60.00 this one should see 59.00 in a hurry.
UNH, United Health Group, Short < 61.25, Healthcare, $HCX.X
Rallied on Monday on light volume. Sector looks top heavy. Below 61.25 UNH loses a major support area and should fall hard.
***FMKT, FreeMarkets, Inc, Short <19.00, Internet, $IIX.X
Below 19.00 would constitute a trend line break after a strong run in this stock from 13.00. This One is due for a rest. This stock has seen dramatic volume over the past 2 days but has been unable to rally any further.
NVDA, NVIDIA, Short <87.30, Semiconductor Sector, $SOX.X
This one is in big trouble after the Barron’s article over the weekend. Below Monday’s low, this one could see 84.50 in a hurry. Yesterday’s gap down has left many longs trapped. This could get ugly fast.
Trade Well Today!
Ed Balog, Steve Bell & Deron Wagner
General Partners
intradayinvestments.com |
