Intraday Investments Stalk Sheet for Tuesday, July 31, 2001
In overnight action, the Nasdaq Futures are flat and the S&P futures are up .60 points as of 7:35 pm edt. On Monday, market was choppy and volume was light. Investors seem to be waiting for new economic news as most major earnings announcements are behind us.
Companies in our sector model reporting earnings on Monday include: CAH, VZ, HM, and KLAC. Of the four, only KLAC reports after the close.
Economic data due out Tuesday includes: Personal Income and PCE for June (8:30 am), Chicago PMI and Consumer Confidence numbers for July (10:00 am). This year has been marked by a decrease in personal income growth and significant reductions to wealth. Nonetheless and to the amazement of many economists, personal spending is outpacing income growth. The combination of a negative savings rate, heavy increases in consumer debt, decreasing income growth and a negative wealth effect (decline in equities) does not bode well for the economy in general. We will be watching carefully the consumer confidence numbers as they are a key concern for the Federal Reserve as consumer spending has kept this economy alive thus far.
LONGS:
GPS, The Gap, Long > 27.64, Retail-Apparel, $RLX.X
After two big days of blowout volume, this stock has found support on the daily chart at the 200 ma. On light volume, this stock sold off briskly only to recover and close at the highs of the day and above yesterday’s close. STRONG VOLUME is a must. We may consider entering above 27.50 but only if volume is strong. Above 27.65 we expect to see 28.50.
HIG, Hartford Financial Svcs., Long >64.99, Insurance Sector, $IUX.X
Insurance Sector has been consolidating for 5 days and traded within 1.1 pts of the 5 day high of 745.25. If the sector breaks out this stock should also since it saw very strong volume today and managed to close in the upper 40% of its trading range as the futures got pounded into the close.
AIG, American Int’l Group, Long > 82.90, Insurance Sector, $IUX.X
Above here we break the 200 ma on the 15 min chart. This stock saw solid volume on a weak day (and weak volume day) in the markets and closed near the day’s high against the sell off in the futures. Nice relative strength on AIG’s first reversal day after 7 straight days of selling.
MENT, Mentor Graphics, Long > 18.60, EDA Software, $GSO.X
This stock has been consolidating in a tight trading range for over a month and it broke major resistance today on double the past 12 days average volume. Had a nice Fibo retracement and consolidated into the close. On Continued strong volume we will enter above Fibo resistance at 18.60.
SHORTS:
AMAT, Applied Materials, Short < 46.15, Semiconductor Equipment
Below here we lose the 200 ma on the 5 min chart and the 200 and the 20 ma’s on the 60 min. chart. Volume is drying up on AMAT as it is running into major resistance at the 200 ma on the daily chart. Below 46.15 expect to see 45.50 and then 44.85.
XLNX, Xilinx, Short < 38.75, Semicustom Logic – Semiconductors, $SOX.X
Below 38.75, XLNX breaks support of the 200 ma on the5 min chart and the 20 ma on the 60 min and daily charts. Volume is beginning to dry up also. 38.25 is the next support and represents the neckline of a head and shoulders that has set up over the past 2 trading days.
LRCX, Lam Research, Short < 27.80, Semi Equipment
Below 27.80 we break the 200 ma on the 5 min chart, the 20 ma on the daily/60 min charts and are poised to break Monday’s low of 27.70. Stock has had a parabolic run over the past 4 days and is due for a rest.
TXN, Texas Instruments, Short < 34.69, Mixed-Signal + DSP Congl.,-Semiconductors, $SOX.X
Below 34.69 we break the neckline of a head and shoulders pattern on the 15 min chart. This stock saw its first reversal day on Monday after a parabolic 3 day run. TXN needs a rest. Predicted drop from neckline is to 33.25 + / -.
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com |
