Intraday Investments Stalk Sheet for Wednesday, August 1, 2001
Choppy, choppy, choppy is the only way to describe Tuesday’s trading environment. Interestingly, even though all three major indices were up on the day, we shorted the market almost the entire session and made money.
As of 6:45 pm edt the Nasdaq Futures are down 9 points and the S&P futures are down 2.50 points. We expect to see continued selling pressure into Wednesday morning in the Semiconductor and Software sectors.
Companies in our sector model reporting earnings on Wednesday include: AT, CI and AETH. Only AETH reports after the close.
Economic data due out Wednesday includes: Auto Sales, Truck Sales, Construction Spending and the NAPM index. NAPM and Construction Spending numbers are due out at 10:00 am edt on Wednesday. It will be interesting to see if the NAPM index drops as dramatically as the CPM Index numbers did on Tuesday and what affect this may have on the market. Still, Friday is the big day for economic news with Nonfarm Payrolls, the Unemployment rate and Hourly Earnings leading the way. We must be careful going into Friday.
LONGS:
AWE, AT&T Wireless, Long > 18.82, Telco-Wireless
This stock bounced off of Fibo support on Tuesday after a big run up 2 days ago. AWE rallied to close at the high of the day on increasing volume. Above 18.82 we break the neckline of an inverse head and shoulders on the 15 minute chart. Predicted rally from inverse h&s is 19.25.
ITWO, i2 Technologies, Long > 9.75, Internet – Infrastructure, $IIX.X
ITWO closed the day on strong volume and is poised to break through resistance at 9.75. Above here we break Tuesday’s high and a zone of resistance formed on 7/30/01. Above 9.75 look for resistance at 10.00 – 10.21. Volume must be strong for this play to work.
MMM, Minn. Mining & Mfgr., Long > 112.68, Chem.-Plastic & Rubber, $CEX.X
Stock saw great volume today and is poised to break above a 4 day zone of consolidation. Above this price, we should see enough volume hit the stock to carry it past the 20 ma on the daily and the 200 ma at 112.95 on the 60 min chart.
NVDA, Nvidia, Long > 81.87, Semiconductor-Graphics/Video, $SOX.X
NVDA closed near the high of the day as the market was selling off sharply. Volume was strong and increased nicely on Tuesday. Above 81.87 we break a 3 day zone of resistance.
SHORTS:
AMAT, Applied Materials, Short < 45/45, Semiconductor Equipment
Below here we lose the 20 ma on the 60 min chart and low of 7/27/01. Downside volume increased significantly today as the stock closed near the day’s low.
BBY, Best Buy, Short <66.30, Consumer Electronics – Retail, $RLX.X
This stock closed near the low of the day after a failed rally attempt. Volume was strong to the down side into the close. Below 66.30 we lose the 200 ma on the 15 min chart and the 20 and 200 ma’s on the 60 min chart. Very bearish reversal candle formed on the 60 min chart into the close.
LRCX, Lam Research, Short < 27.75, Semi Equipment
Below 27.75 we break the 40 m/a on the daily chart 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.
MU, Micron, Short <41.65, Computer Memory – Semiconductors, $SOX.X
Below here MU loses the 200ma on the 5 min chart and the 20 ma on the 60 min chart. This stock sold off on big volume into the close.
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com |
