Intraday Investments Stalk Sheet for Thursday, July 19, 2001
Technology had a difficult time on Wednesday as more gloomy earnings reports came to the forefront. Additionally, Alan Greenspan’s meeting before Congress didn’t help in lifting the cloud of doom from the markets and technology in particular. Per Mr. Greenspan’s testimony, "The period of sub par economic performance...is not yet over, and we are not free of the risk that economic weakness will be greater than currently anticipated, and require further policy response. That weakness could arise from softer demand abroad as well as from domestic developments."
After the close, IBM reported earnings and the company met its profit projections but indicated that revenues for the second half of this year may be weaker than expected. IBM traded down over $4.00 during Wednesday’s session.
As of 11:00 pm edt, the Nasdaq futures were down only 1.0 pts while the S&P futures were off only .30 pts.
On the economic calendar tomorrow we have initial jobless claims for July, trade balance numbers for May and leading economic indicators for June.
Our Sector Model Stock that are announcing earnings tomorrow include: ARBA, BAX, ELNK, LLY, GENZ, NOK, ODP, PNC, PVN, FON, PCS, ATML, CTXS, EBAY, GTW, IDPH, INKT, MCHP, MSFT, NT, PMCS, SFA, SUNW, TMTA, TQNT, VTSS & XLNX.
LONGS:
SEPR, Sepracore, Long > 40.70, Pharmaceutical Processing
Will need big volume to get through this resistance. Stock closed near high of the day on Wednesday on solid, increasing volume. May consider taking this one long over 40.10 buy only if volume is very strong.
VRTX, Vertex Pharmaceuticals, Long > 40.70, Cancer
Big volume is a must since this stock rallied on rather light volume on Wednesday. Above 40.70 we break the 200 m/a on the 15 min. chart and a key band of resistance formed over the past 6 trading days.
MER, Merrill Lynch, Long > 53.65, Traditional Brokers, $XBD.X
Doji star reversal candle formed on Wednesday as the stock rallied strongly into the close. Above this price the stock breaks a key zone of resistance formed over the past 2 trading days. Also breaks above the 200 ma on the 15 min chart and the 40 ma on the 60 min chart above this price. Must see increasing volume to break out.
DOW, Dow Chemical, Long >35.60, Plastic and Rubber, $CEX.X
This stock rallied nicely today on very strong volume. Will need good volume again to break resistance near 35.60.
LLY, Eli Lilly, Long > 77.20, Major Drug Companies, $DRG.X
LLY saw great volume on Wednesday and closed just off the highs of the day. If volume stays strong this stock should break out of a consolidation band formed over the past 12 trading days.
SHORTS:
EMLX, Emulex, Short <24.60 on strong volume or Short on a rally to 27.00 as this is now key resistance, Fiber Channel Equipment-Computer Storage
This stock lost major support today on very strong volume. This stock could test the lows of the year now that is lost this key support level.
NETA, Network Associates, Short <10.36, Application Management-Software, $GSO.X
Below here, Neta breaks the neckline of a head and shoulders pattern on the daily chart. There is some support at 10.11 but if NETA sees strong downside volume and the market is weak, this minor zone of support should not hold.
PSFT, Peoplesoft, Short < 37.96, Productivity Applications, $GSO.X
This stock sold off on heavy volume on Wednesday but managed to rally back to close in the middle of its trading range which is somewhat bullish. However this stock is hovering near the neckline of a major head and shoulders on the daily which happens to correspond to the 200 per exponential moving average. Below here the stock should see 35.00 in a hurry.
VRSN, Verisign, Short < 47.88, Security Software, $GSO.X
Below here, VRSN loses the neckline on the daily and should fall hard. The stock closed near the low of the day on strong volume on Wednesday. This one may gap down however and this would take it out of play. Also, the stock was down over 10% in one day and may experience a relief bounce.
STK, Storage Technology, Short <12.59, Storage Hardware
Below here STK loses the 200 per ema on the daily and breaks the neckline of a head and shoulders pattern. Downside volume increase would be nice.
ADI, Analog Devices, Short < 38.41, Mixed Signal + DSP Conglomerates, $SOX.X
Below here ADI loses a major support zone established over the past 25 trading days. Also, a break of support here would continue the predicted drop to 33.00 from the head and shoulders formed on the daily from 4/18 to 6/14. This move would also fill the gap of 04/11/01. Stock closed near low of day on solid volume.
Trade Well Today!
Ed, Steve and Deron
General Partners
intradayinvestments.com |
