Intraday Investments Stalk Sheet for Wednesday, July 25, 2001
In overnight action, the Nasdaq Futures are 9.50 points and the S&P futures are up 4.20 points as of 10:15 pm edt. In after hours trading the news among technology stocks was mixed. PSFT surprised with great earnings and revenues and traded up over $3.00 in the session. QLGC & MSCC on the other hand were big losers in the late session. Both companies missed analysts estimates for sales and MSCC provided guidance for 4th quarter revenues to be slightly below analysts projections.
Companies in our sector model reporting earnings on Monday include: AHC, DD, PHA, SGP, SLB, TX, ADPT, AFFX, BVSN, CHIR, CPQ, GLW, FDRY, HAL, HLIT, LLTC, MEDI & QSFT.
On the economic calendar for Wednesday we have existing home sales for June to be announced at 10:00 am edt (1st reversal period). The market consensus is for 5.3 million units. Strength in home sales has been a surprise in this weakening economy in light of falling consumer confidence numbers, massive layoff announcements and the deterioration of wealth in the stock market. Watch out below if we miss this key number beyond reasonable expectations.
LONGS:
CIEN, Ciena Corporation, Long > 31.85, Next Gen Packet & Mux’ing Equip., $NWX.X
Above 31.85 we break the 40 ma on the 60 min chart and the 200 ma on the 15 min chart. As of this posting, CIEN has gapped up in the after hours market and we will adjust our entry based upon the actual gap up (if any). On a gap up near 32.00 we would look for an entry near 31.50. If we gap up over 31.85 we will look to enter on an appropriate Fibonacci pullback. If Cien is strong, look for ONIS as a sympathy play.
SUNW, Sun Microsystems, Long > 15.00, Unix Workstations – Comp Hardware, $HWI.X
Sunw closed near the high of the day on strongly increasing volume. Stock broke and closed above the 200 ma on the 5, 15 and 60 min charts. Last obstacle to 15.50 is the 20 ma on the daily chart. Will need continued strong volume to move higher. Market must also cooperate.
IVGN, Invitrogen, Long > 61.60, Genetic Mapping Research-Biotech, $BTK.X
Above Tuesday’s high this stock will need dramatic volume much like it saw on Tuesday in order to break higher due to much overhead resistance. Next Fibo resistance is at 62.05 and then 62.60. This stock showed great relative strength against a weak market and an even weaker sector. If the market rallies and the Biotech Sector turns up on Wednesday, this stock should be one of the first biotech stocks to rally.
AFL, Aflac, Inc, Long > 31.65, Insurance Sector, $IUX.X
After selling off the entire day, this stock made a dramatic reversal starting at 3:12 pm to close virtually at the high of the day on substantial volume. Also formed a bullish hammer candlestick. Will need a cooperative market and sector to go higher. Also needs strong volume since there is significant overhead resistance of the 20 and 200 ma’s on the daily chart and the 200 ma on the 60 min chart at 32.00.
SHORTS:
CS, Cabletron Systems, Short <20.20, Enterprise Networking Equipment, $NWX.X
This stock closed right on the neckline of a major head and shoulders pattern on the daily. Also closed near the low of the day on the highest volume this stock has seen in 4 days. Below 20.20 we not only break the neckline but we also lose the 200 ema and the 40 ma on daily. Will also consider shorting this one on a rally into the 200 ma on the 60 min chart at 21.20.
BRW, Broadwing, Short <24.00, CLEC’s, $XTC.X
Below 24.00 we break the 200 ma on the daily for the 3rd time in 3 trading weeks and also break the 200 ma on the 60 min chart. BRW has formed a head and shoulders on the daily with the 200 representing the neckline. There is minor support at 23.75. Stock closed near the low of the day on solid volume.
SGP, Schering-Plough, Short < 37.90, Second Tier Drug Companies, $DRG.X
Below here SGP loses Tuesday’s low and the neckline of a head and shoulders evident on the 60 min chart. Closed only 5 cents off the day’s low on increasing volume. Below the neckline there is support at 37.60 and at 37.15 and 36.75. Predicted drop from head and shoulders set up is 36.75.
ADBE, Adobe Systems, Short < 39.85, Productivity Applications-Software, $GSO.X
Head and shoulders set up on 60 min chart. 39.85 is Tuesday’s low and the neckline of the head and shoulders. Minor Support at 39.70 – 39.80 but would rather enter early at 39.85 and keep a tight stop if stock reverses. ADBE closed just off the day’s low on the highest volume seen in 5 days.
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com |
