Intraday Investments Stalk Sheet for Wednesday, July 25, 2001
In overnight action, the Nasdaq Futures are down 1 point and the S&P futures are up 2.00 points as of 8:30 pm edt. There is no earth moving news in the late session and the futures reflect this climate.
Tomorrow, we expect to see follow through to the upside in the Oil Services sector. This sector rallied into the close with a vengeance
Companies in our sector model reporting earnings on Monday include: ALA, AIG, BHI, CRA, CELG, DOW, JDSU, P, WCOM, VRTX, NE, AFCI, AMGN, CORV, ERTS, EXDS, GILD, HGSI, HYSL, IRF, LSI, QCOM, SBUX, STK & VRSN.
On the economic calendar for Thursday we have initial jobless claims for 07/21/01, the employment cost index for Q2, Durable goods orders for June and the Help-Wanted Index for June. All numbers are due out at 8:30 am edt except for Help-Wanted Index numbers which are due out at 10:00 am edt.
LONGS:
HAL, Haliburton, Long >34.30, Oil Services-Drillers, $OSX.X
This one closed at the high of the day on excellent volume. Big block volume was hitting the offer into the close. Above 34.30 we break the neckline of an inverse head and shoulders. 34.85 is a key resistance zone. It is very likely this one will gap up in the morning based on how it closed. We go long if it trades above 34.30 without gapping, buy it at the open if it gaps less than 30 cents or buy it on a fibonacci pullback if it gaps into resistance at 34.85. If it gaps above 34.85 we will evaluate the trade at that time. If the gap is large enough and volume is light, we may even consider fading the gap for a quick scalp.
SUNW, Sun Microsystems, Long > 15.70, Unix Workstations – Comp Hardware, $HWI.X
Sunw closed near the high of the day on strongly increasing volume. This one is now trading above all key moving averages on the 5, 15, and 60 min charts. If it can get past Wednesday’s high on solid volume, we should see 16.20.
FMC, FMC Corporation, Long > 66.75, Consumer Financial Services, $BKX.X
Stock formed a dramatic reversal candle Intraday after losing support Tuesday. This significant rally should be concern for bears particularly if this stock can break above 66.75 which would carry it above both Tuesday’s and Wednesday’s highs and the 40 m/a on the 60 min chart. There is resistance at 66.95 (200 ma on the 15 min chart). Volume MUST BE STRONG as 67.00 is a key zone of resistance.
FTU, First Union, Long >35.45, Money Center Banks, $BKX.X
Closed near the high of the day on Wednesday on solid, increasing volume. Will need even better volume to break above key resistance of 35.45 to set a new high. Above here, this one breaks through a double top formation.
FLEX, Flextronics, Long >26.02, Computer Manufacturing, $HWI.X
Long above Wednesday’s high of 26.02 this stock should see 27.00 – 27.50 (200 ma on the daily) as it has cleared all major moving averages on the 5, 15 and 60 min chart.
SHORTS:
SNPS, Synopsys, Short < 49.05, Computer Software-EDA, $GSO.X
This stock closed near the low of the day on the highest volume it has seen in the past 9 days. SNPS could not rally and consolidated at the lows during Wednesday’s afternoon rebound. Below here it loses the 200 ema on the daily and should fall to 48.40 where it will see support at the 200 m/a. Below this key support zone the stock should see 47.40.
CS, Cabletron Systems, Short <19.00, Enterprise Networking Equipment, $NWX.X
This stock closed near the low of the day on increasing volume after breaking the neckline of a head and shoulders pattern. We will also consider shorting this one if it gaps up into or rallies into Fibonacci resistance near 19.50 – 19.80.
CDN, Cadence Design Systems, Short < 21.62, Computer Software-EDA, $GSO.X
This one is forming a head and shoulders on the 60 min chart with a predicted drop to the 19.00 range. Upside volume is drying up after major volume explosion 6 days ago. Should see some support at 21.20 and 20.80. May consider entering a half size position on this one below 21.80 as this is a key support zone on the 5 min chart. Will also short this one if it gaps up on light volume as a swing trade (evaluation to be made at time trade made).
It was very difficult finding shorts this evening. In the morning, if the market gaps up we will look to short some of the weaker stocks from Wednesday (ie. Stocks that closed near the lows of the day on Wednesday but gap up into resistance on light volume). Candidates include: CS, SGP, SNPS, CDN & MENT. Will also consider shorting stocks that gap up that had parabolic moves into the close on Wednesday. Candidates are: CLS, DELL above 28.40, ADBE above 42.80, CA above 34.95, CTXS above 34.50, ERTS above 56.35, PSFT above 39.10 and QLGC above 35.25.
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com |
