Intraday Investments Stalk Sheet for Monday, July 30, 2001
In overnight action, the Nasdaq Futures are down 11.00 points and the S&P futures are down 3.70 points as of 10:15 pm edt.
Per CBS Marketwatch: “On tap for this week are figures on personal income and spending Tuesday, as well as consumer confidence data for June. Wednesday sees the release of the National Association of Purchasing Manager's index for July, which is expected to show a reading of 45, according to CIBC World Markets. The index stood at 44.7 in the previous month.
Investors will turn their attention to June factory orders on Thursday, which are expected to drop1.5 percent, compared with a gain of 2.5 percent in May.
The heavyweight report of the week comes Friday when the market will pore over non-farm payrolls, unemployment and average hourly earnings data.
The U.S. economy shed 114,000 non-farm jobs in May and analysts are anticipated the economy dropped another 53,000 in June. The report will be hotly watched in the wake of JDS Uniphase slashing up to 16,000 jobs, about 55 percent of its workforce. JDS became the latest in series of technology and telecommunications companies to slash staff in a bid to lower costs.”
Fewer companies are scheduled to report earnings this week now that about 75 percent of S&P 500 companies have already released their reports. Therefore, companies in our sector model reporting earnings on Monday only include: HIG and FMKT.
No economic data is due out Monday but as stated above, the remainder of the week has plenty of economic data for the markets to ponder.
LONGS:
GPS, The Gap, Long > 27.35, Retail-Apparel, $RLX.X
After two big days of blowout volume, this stock has found support on the daily chart at the 200 ma. Friday appears to be the first reversal day in the stock after 4 straight down sessions.
The stock formed a doji star on Friday. On strong reversal volume look for this one to see 27.65 then 28.15.
RMBS, Rambus, Long > 8.30, Graphics- Video, $SOX.X
This stock showing some signs of consolidating after taking a 30 day pounding. At 8.30 RMBS breaks above the 40 ma on the 60 min chart and should see 8.55.
PCS, Sprint PCS, Long >27.50 or Fibo pullback to 26.20 to 26.50 range, Wireless Svc. Providers
This one broke out on very strong volume on Friday to close near the high of the day. Above 27.50 we break major triple top resistance formed over the past several months on the daily. Ideally we would like to see a pullback to enter.
AT, Alltel, Long > 62.21, ILEC’s, $XTC.X
Stock has been in an up trend since late April. Although it is forming a head and shoulders on the daily, AT looks as if it has one up leg left before following through on this pattern. Stock has numerous support levels all the way down to 60.50 keeping the risk/reward in our favor. Volume must be strong to break above here since there is additional resistance at 62.30.
SHORTS:
ERTS, Electronic Arts, Short < 60.15, Entertainment Software, $GSO.X
This stock has been on a parabolic run for the past 3 days and it is rallying into major resistance at 62.00. Not likely to break out in the current market environment. Will also short it if it rallies or Gaps on weakening volume into 61.75 to 62.00 area. Will also consider shorting this one below the 30 min low.
BRW, Broadwing, Short < 24.50 or below the 30 min low from open, CLEC’s, XTC.X
This stock rallied for the 3rd straight day on Friday but volume is drastically decreasing. Has big resistance at the 200 ema on the daily. First support at 24.20.
XOMA, Xoma Ltd., Short < 12.40, Small Cap
This stock closed almost at the low of the day on Friday on very strong volume at the neckline the a head and shoulders pattern on the daily. Below 12.40 we should break the neckline and head for 12.20, 12.00 and then 11.65. Below 11.65 we should see 11.00.
LRCX, Lam Research, Short <27.90 or the initial 30 min low, Semi Equip. Mfgr
Stock rallied significantly on Friday but volume was very poor and the stock subsequently sold off into the close (well off the highs). We may even trade this one short below the opening 5 min low. Stock has had a parabolic 3 day run and is due for a rest. First target is 27.50 then 27.00. AMAT and CREE has similar setups. Watch these as sympathy plays.
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com |
