Intraday Investments Stalk Sheet for Monday, July 16, 2001
The tone in Barron’s this weekend seemed quite bearish for the economy. There seems to be some concern regarding Microsoft’s 3.9 billion write down to investments, the lack of savings in the economy, the ultimate affect of severe corporate layoffs and the ultimate impact these issues will have on consumer spending which has, for the most part, kept this economy alive thus far.
As of this writing, the S&P futures are down 1.6 pts and the Nasdaq futures are up 1.5 pts… Nothing eventful for either index..
On Wednesday, Fed Chairman Alan Greenspan gives his semi-annual “state of the economy” presentation before Congress. Investors will be focused on the likelihood the Fed will cut interest rates further at the August 21 Fed meeting.
The retail sector seems top heavy after a furious 3 day rally and the RSI is diverging from the index.. Sector is also running into moving average resistance on the daily and therefore looks primed for a sell off.
We expect biotechs to see some additional follow through to the upside along with the oil services sector.
LONG PLAYS:
DO, Diamond Offshore, Long >30.12, Oils Services, $OSX.X
Closed strong on Friday on good volume. Showed relative strength compared to its sector. Above this price and with strong volume this stock should be able to break resistance of 30.25 on the 60 min chart (declining 20 m/a). Needs good volume.
PTEN, Patterson-UTI Energy, Long > 15.55, Oil Services, $OSX.X
Sector due for a rally. Above here the stock should see 16.20. At 15.55 we break above the 20, 40 and 200 ma’s on the 5 min chart. Strong volume is a must.
SII, Smith International, Long > 55.35, Oil Services, $OSX.X
Above 55.35 SII breaks the 200 ma on the daily and with strong volume should see 56.00. Above 56.00 we could see 57 but only if volume is strong and market cooperates.
HGSI, Human Genome Sciences, Long > 49.00, Biotech Sector, $BTK.X
Performed well on Friday before pulling back to Fibonacci support into the close. Above 49.00 and with strong volume, this stock will be positioned well to break further resistance at 50.00 (200 ma on the 15 minute chart. Above 49.00 the stock will break above Fibo resistance (.618 retracement from the highs of Friday to the lows of the afternoon pullback on Friday).
SHORT PLAYS:
JNPR, Juniper, Short <26.75, Internet Backbone Routers
Stock sold off on heavy volume and closed near the low of the day on Friday. Below 26.75 we lose the 200 ma on the 5 min and the 20 and 40 ma’s on the 60 minute.
RAD, Rite Aid, Short <8.00, Retail-Drug Stores, $RLX.X
This stock has not rallied with the overall market rally suggesting relative weakness. RAD is at the neckline of a head and shoulders on the daily chart. Below 9.00 the stock has support at 7.66 to 7..75. Volume is also declining. Stock has broken up trend line on the daily and has moving average resistance on all time frames. Predicted drop if we break the neckline is to 6.80.
SPLS, Staples, Short < 13.84, Specialty Stores, $RLX.X
This stock just broke critical support at 14.00 two days ago on significant volume. Friday’s rally was on decreasing volume into resistance. We will short this on at stated price or if it gaps up below 14.30 on light volume on Monday.
BBY, Best Buy, Short < 67.60, Electronics Stores, $RLX.X
Stock failed a breakout attempt above 68.64 on Thursday on heavy volume thus forming a double top on the daily. On Friday, volume weakened significantly. RSI no longer setting new highs with the stock. Loses 20 and 40 ma’s on 5 and 15 min charts below 67.60.
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com |
