Intraday Investments Stalk Sheet for Tuesday July 10, 2001
From a purely technical perspective, our inclination while reviewing the sectors this evening is to expect a rally in the markets on Tuesday. However, given the fact that we are in earnings season and the earnings announcements made thus far seem to have rocked the markets, we must be on guard that further declines are still possible.
The Biotech sector formed a bearish candlestick pattern on Monday and looks to be headed lower on Tuesday.
It will be interesting to see tomorrow whether or not the market shrugs off the bad news out of GLW or if Monday’s news drags this already beaten down sector to new depths of despair. We will be watching closely. Before the GLW warning, we expected a rally in the networking and semiconductor sectors. We will watch carefully to see if the weakness in networking pulls down the semis. Also, keep in mind that MOT announces earnings on Wednesday while AMD, RMBS and JNPR do so on Thursday. It is often the case before such big announcements to see the market and/or sector(s) trade quietly.
Keep a close eye on the Software Sector since DCLK and RATL, two stocks included in our “Master Sector Model”, announce earnings after the close tomorrow.
Dow sectors looking to rebound include Banking, Retail, Healthcare and Drugs. Utilities on the other hand are looking over extended.
LONGS:
QCOM, Qualcom, Long > 62.80, Networking Sector, $NWX.X
Stock rallied well against a weak sector and did so on very strong volume. Above yesterday’s high with continued strong volume, QCOM should see 64.00.
USB, US Bancorp, Long > 23.60, Banking Sector, $BKX.X
This stock closed at the high of the day on Monday on increasing volume. However to get above this key resistance zone, we will need strong volume and a cooperative market. Keep in mind that this rally has been fueled by significantly less volume than this stock saw the last time it approached this price.
PVN, Providian, Long >56.50, Banking Sector, $BKX.X
Stock closed strong on Monday and above Friday’s closing price. Above 56.50 it will see resistance at 56.80 and then 57.50. Will need good volume to get there however.
FTU, First Union, Long > 33.88, Banking Sector, $BKX.X
Stock formed a long legged doji after 3 down days and closed in the upper third of its trading range for the day. With good volume, above 33.88, this stock could see 34.40.
NEM, Newmont Mining, Long > 18.55, Precious Metals
Stock has been consolidating nicely for 3 days. Double doji star pattern over the past 2 days. Fifth Elliott wave completed on the 60 minute. With solid volume this one should see Fibo retracement to 19.25. Will consider this stock as a swing trade.
XLNX, Xilinx, Long > 38.25, Semiconductor Sector, $SOX.X
Above here, XLNX breaks the 200 m/a on the 5 min chart and the neckline of an inverse head & shoulders. Will need strong volume to accomplish this.
AMCC, Applied Micro Circuits, Long > 15.33, Semiconductor Sector, $SOX.X
Above here, AMCC breaks above 20, 40 and 200 m/a’s on the 5 chart and above the 20 m/a on the 60 min chart. Next resistance at 15.55 then 16.00. Needs strong volume.
CREE, Cree, Inc., Long > 22.87, Semiconductor Sector, $SOX.X
Stock closed near the high of the day but on light volume. Will need better volume to rally further. RSI divergence on the daily bodes well for a rally.
Above Monday’s high of 22.87, with a burst of volume, CREE should see 24.15. Should see some resistance at 23.40.
SHORTS:
SCH, Schwab, Short < 14.94, Broker/Dealer, $XBD.X
Below here constitutes a neckline break of a head & shoulders pattern on the daily and 60 min charts. Predicted drop would be to the low of the year near 13.14. Would like to see accelerating volume.
AGE, AG Edwards, Short < 41.60, Broker/Dealer, $XBD.X
A break below this key support zone of 41.60 should send this stock to 40.00 quickly.
AMZN, Amazon, Short <15.48, Internet Sector, $IIX.X
Amazon loses major moving average support on the 5, 15 and 60 min charts below this price. Should see 14.80 if it breaks. Volume has been decreasing over the past 2 days and there is major RSI divergence on the 60 min chart. 13 straight days up or sideways for this stock into resistance does not bode well for this stock.
Trade Well Today!
Ed, Steve & Deron,
General Partners
intradayinvestments.com |
