Intraday Investments Stalk Sheet for Tuesday, July 17, 2001
Well, after today, last Thursday’s rally seems like a distant memory. The markets were weak most of the day with the Oil Service, Biotech, Semiconductor and Networking sectors leading the decline.
In after hours action, semiconductor stocks sold off as Novellus offered cautious statements regarding visibility with respect to finding a bottom to the current market condition in the sector. As of 9:34 pm, the Nasdaq and S&P futures were trading down 10.50 pts and 2.00 pts respectively.
Coming into tomorrow, we expect to see a reversal in the retail and transportation sectors to the downside and continued weakness in semiconductors.
On the economic calendar tomorrow, the industrial production and capacity utilization numbers are due out for June. Of course, Greenspan’s meeting before Congress on Wednesday looms as the single most important economic event this week.
Stocks announcing earnings tomorrow include: BGEN, BDK, CAT, SCH, CORR, CMA, DAL, DO, EK, FNM, FBF, FRX GM, GLM, GAP, IP, JNJ, KEY, MER, PMTC, PFE, USB, USM, WFC, CTAC, AAPL, ONE, CDN, DIGL, DUK, IWOV, INTC**, MLNM, PBI, RNWK, RFMD and VRTS. Needless to say, Tuesday’s earnings calendar is filled with big names across various sectors.
LONGS:
The market is clearly weak. This is even in spite of the fact that we had that big rally last Thursday. Going into Tuesday, it feels very much like trying catch a falling knife on the long side of the market. However, If the market were to reverse, the following stocks have shown relative strength and therefore should be the first to rally: CRUS, IMCO and NITE.
SHORTS:
CLS, Celestica, Short < 44.20, Hardware/ Manufacturing, $HWI.X
Stock is barely holding on to support at the neckline of a head and shoulders pattern formed on the 15 min chart. Below this price, we break the neckline and should fill the gap down to 42.00. Stock also loses the 20 per m/a on the daily and the 60 min below here. CLS closed near the low of the day on increasing volume.
BBY, Best Buy, Short <67.76, Electronics Stores – Retail, $RLX.X
Below here, BBY loses the 20, 40 and 200 ma’s on the 5 min, the 20 and 40 ma’s on the 15 min and the 20 ma on the 60 min. This stock has been rallying the past 2 days on severely decreasing volume into a double to and appears to be running out of gas. Will see 67.00 in a hurry if it breaks support.
S, Sears, Short <43.75, Department/Discount-Retail, $RLX.X
Below here Sears has minor support at 43.55. Stock has rallied into a double top on decreasing volume over the past 3 days on the 60 min chart. Retail sector showing signs of weakening today. Last four peaks in the RSI have diverged from the price action in the stock.
WMT, Walmart, Short < 53.11, Department/Discount-Retail, $RLX.X
Major parabolic 4 day run in WMT is running out of gas. Monday the stock broke it’s trend line on the 60 min chart and closed near the low of the day forming a doji star, after gapping up slightly. After such a major run, the stock is due for a rest.
ERTS, Electronic Arts, Short < 57.03, Entertainment-Software, $GSO.X
Below Monday’s low of the day, ERTS should see 56.00 in a hurry. To really fall hard, ERTS must break the 200 m/a on the 60 min (56.00). The stock sold off Monday on increasing volume and is a high flyer, much like NVDA, that is finally showing signs of coming unraveled.
SEPR, Sepracor, Inc., Short < 36.40, Pharmaceutical Processing
After showing a strong reversal day on Friday, this stock sold off on Monday closing near the low of the day. In doing so, the stock formed a head and shoulders pattern with neckline support at 36.40. Below here, SEPR should fall to 34.00.
AMCC, Applied Micro Circuits, Short < 15.40, CPU’s, $SOX.X
Stock tried to break out on solid volume on Friday and couldn’t. Also attempted to make a run at Friday’s highs on Monday and failed. The stock then went straight for the basement Monday, closing near the low of the day. Below 15.40 AMCC breaks major moving average support on the 15min , 60 min and daily charts and should fill the gap created on 07/12/01.
INTU, Intuit, Short <34.40, Productivity/Application – Software, $GSO.X
Below this critical support level, INTU breaks the neckline of a head and shoulders set up on the daily chart. INTU closed below the 40 per m/a on the daily for the first time since 05/30/01. The predicted drop on this head and shoulders pattern would be to 30.00.
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com |
