Intraday Investments Stalk Sheet for Friday, July 20, 2001
Although a lot can change before now and tomorrow morning, we expect to see a gap down in the morning based upon overnight futures action. If we see a gap down, we will be looking to buy stocks that showed the most relative strength, closed near the high of the day and had the best volume on Thursday.
In after hours action, the Nasdaq Futures are down 39.50 points and the S&P futures are down 7.50 points as of this posting. The news that sent the markets tumbling was a warning from software giant Microsoft that next quarter’s revenues and profits will fall shy of analysts expectations. Microsoft (MSFT) now expects first-quarter earnings of 39 cents to 40 cents a diluted share on revenue of $6 billion to $6.2 billion. The mean estimates of analysts surveyed by Thomson Financial/First Call were for earnings of 45 cents a share on revenue of $6.27 billion for the quarter ending Sept. 30. Microsoft was down over $3.00 in after hours trading.
Companies in our sector model reporting earnings tomorrow include: APD, ERICY, MRK and NCC. There is no major news on the economic calendar for Friday.
LONGS:
VZ, Verizon, Long >57.40, Ilec’s-Incumbent, $XTC.X
Stock broke to high of the year on strong volume and closed near the high of the day. Volume must remain strong and the futures will most likely need to be behind this stock if it is to move higher. Should see 58.00 then 58.50. If volume holds up we could test the 12/07/01 high of 59.38.
PCS, Sprint PCS, Long on a Fibo pullback on modest volume to 25.00 – 25.10 range, Wireless Service Providers
This stock broke out on good earnings news and an upgrade. PCS saw great volume on Thursday and closed at the high of the day. A pullback is necessary for a reasonable risk/reward entry.
ELNK, Earthlink, Long on a Fibo pullback on modest volume to 16.70 – 16.85 range, Mega ISP’s
Will also consider going long this one if it breaks above 17.34 on major volume buy only for a scalp as the stock has gotten a bit over extended. ELNK closed near the high of the day on huge volume. Safer play is to enter this one on a modest gap down into support or a sell off into support.
NOK, Nokia, Long > 20.00 on big volume or on Fibo pullback on modest volume to 18.50 – 18.80,
Stock broke out on huge volume but then closed in the lower third of its trading range. Looks like this one will go lower before continuing the upward move. Will look for a gap down or sell off to key Fibo support to enter position.
CREE, Cree Inc., Long >24.75 or on a pullback to the 22.80 range on modest volume, Semi Equipment
Cree broke out Thursday on big volume before getting slammed in the afternoon sell off on light volume but then recovering nicely into the close on high volume. In the aftermarket CREE has traded down to 22.90 range. If it can hold this price or gap down only slightly in the morning, we will consider taking this one long.
SHORTS:
KKD, Krispy Kream, Short < 35.77, Consumer-Non Cyclicals
With a gap down looking likely, this stock should break this key support zone. If it does gap significantly below this price we will look to short it on a rally back up to the 33.70 range. Major head and shoulders forming on the daily.
BBY, Best Buy, Short < 68.35, Electronics Stores, $RLX.X
Stock formed a doji star reversal candle on the daily. Volume is starting to dry up after multi week rally. We are seeing major RSI divergence on the daily chart. Multi day target would be 65.50.
OPWV, Openwave Systems, Short < 18.40, Cell Telephone HW/SW
Below 18.40 this stock loses 4 day consolidation support zone and could see the lows of the year. Stock closed in lower 35% of its trading range on solid volume. Stock gapped up and sold off the entire day before rallying into the close into its downtrend line Intraday.
DNA, Genentech, Short <38.15, Bio Sector Heavyweights, $BKX.X
Stock gapped up and sold off the entire day closing near the lows and forming a dark cloud cover candlestick pattern. The stock loses 4 day consolidation support below this price.
FNSR, Finisar Corp, Short < 12.00, Fiber Channel Equipment
Below 12.00 FNSR loses the neckline of a head and shoulders on the daily. There is minor support at 11.95 but with strong volume and a big down move in the markets this stock should break 11.95 and see the lows of the year. If the stock gaps down we will look for a bounce into the neckline near 11.80 + /- to short it.
TTP, Titan Pharmaceuticals, Short < 26.80, Second Tier Drugs, $DRG.X
Below 26.80 this one should be able to break the 26.72 lows of July 11th. TTP closed near the lows of the day on significantly increasing volume.
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com |
