Intraday Investments Stalk Sheet for Wednesday, July 11, 2001
The market was shadowed by a grinding cloud of doom on Tuesday. The market couldn’t rally at all. Once the GLW news sank in, the market headed south. IBM also contributed to the cloud of gloom by dragging the computer hardware sector down a whopping 8.46% on the day. We expect the selling to continue at least into Wednesday morning.
Remember, we are coming into some big names on the earnings calendar on Wednesday including; KRB in the morning and DNA, HDI, MOT, NETA, NMSS, RBAK, SONS & YHOO after the close. If the sharks get a hint of blood among these players don’t be surprised to see additional selling.
Be aware that with many of the short plays, the RSI is diverging from the price of the stock on the daily charts. This often signals a reversal.
LONGS:
AETH, Aether, Long >9.04, Wireless-LAN’s
Above Tuesday’s high, AETH will see some resistance at 9.23 (high from 06/29/01). AETH closed near the day’s high on excellent volume on a terrible day in the market. Another solid volume day will be needed for this one to get above 9.23.
IO, Input/Output, Inc., Long >11.10, Small Cap
Above here, IO breaks above the 200 ma on the 5 min chart and the 20 ma on the 60 min chart. Should see 11.30.
TOY, Toys R Us, Long >25.00, Specialty Retail, $RLX.X
After multi week sell off, TOY has consolidated for 6 days at major Fibo and technical support zone. RSI showing the lowest reading of the year on the daily. This stock looks ready for a bounce.
SHORTS:
SBC, SBC Communications, Short < 39.80, ILEC-Telco Service, $XTC.X
Below this price, SBC loses key Fibo support.
PCS, Sprint PCS, Short < 23.25, Wireless Service Providers
Below here, PCS sees no serious support until the 200 m/a on the 60 min chart (22.20 area)
GX, Global Crossing, Short <8.27, Competitive Local Exchg. Carrier
Below here, GX breaks the neckline of a head and shoulders pattern with a predicted drop to 7.00.
BRW, Broadwing, Short <23.76, Competitive Local Exchg. Carrier
Loses key Fibo support and the 200 m/a on the daily below this price. Expect to see 22.50 if this price is breached.
AT, Alltel, Swing Short on light volume gap up or < 61.00, ILEC-Telco Service, $XTC.X
Loses key support on 5, 15 and 60 min charts below 61.00. Would also short this one if we get a light volume gap up into a double top on the daily. This stock recently broke its trend line and now appears to be forming a double top on lighter volume.
TLAB, Tellabs, Short <15.27, Telco Hardware
Closed at a new 52 week low on increasing volume. Broke the neckline of a head and shoulders formation on the 60 min chart with a predicted drop to 14.00.
OPWV, Open Wave, Short < 23.75, Cellular Telephone HW/SW
Below here constitutes the break of the neckline of a head and shoulders pattern with at predicted drop to the lows of the year near 13.50. There is decent support at 23.25. This stock closed at the lows of the day with no signs of recovering.
MOT, Motorola, Short <14.90, Cellular Telephone HW/SW
This stock loses the 20 and 40 ma’s on the daily and the 200 ma on the 60 min chart below this price. With an earnings announcement tomorrow after the close, we want to watch this one carefully. May consider an entry below 15.40 if the sector and market look weak.
JDSU, JDS Uniphase, Short <10.60, Optical WAN Telco
Below here JDSU has minor support at 10.40 and then should see the lows of the year at 9.55. Stock closed near low of the day on Tuesday with solid volume.
PSFT, People Soft, Short < 39.90, Productivity Apps- $GSO.X
Closed near the low of the day after gapping up and volume was heavy. Formed an engulfing candlestick pattern on the daily. Below 39.90 we should see 38.50 and then 37.20 if market continues to sell off.
ORCL, Oracle, Short < 17.45, Enterprise Database Apps- $GSO.X
Oracle loses the 20 m/a on the daily and the 200 m/a on the 60 min chart below this price. This is also a Fibo support zone. Should see 16.40 below this price.
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com |
