Intraday Investments Stalk Sheet for Thursday, August 2, 2001
In overnight action, the Nasdaq Futures are up 4.50 pts and the S&P futures are up .70 pts as of 6:20 pm edt. On Wednesday, the semi’s rallied strongly as Merrill Lynch upgraded many names in the chip and chip equipment sectors including ADI, MXIM, LLTC, RFMD, TXN, MU, SMTC, AMAT, KLAC, LRCX, NVLS and TER . Little reason was given for the upgrades other than “there seems to be some light at the end of the tunnel”.
Companies in our sector model reporting earnings on Thursday include: ICN, NEM, and PDLI.
Economic data due out Thursday includes: Initial Jobless claims for 07/28 and factory orders for June.
LONGS:
MERQ, Mercury Interactive, Long > 40.22, Software-Application Management, $GSO.X
This stock has consolidated in a pennant formation at Fibonacci support for the past 4 days after a nice break out move on 07/26/01. Volume picked up nicely on Wednesday. MERQ sold off sharply in the morning on Wednesday only to rally strongly into the close on good volume. Above 40.22 we will see resistance at 40.55 but if volume stays strong MERQ should be able to break out above this resistance.
SCON, Superconductor Technologies, Long > 4.50, Superconductors
SCON rallied nicely on increasing volume and consolidated near the highs of the day. Above 4.50 we break the high of the past 2 days and the 40 ma on the 60 min chart. Strong volume is a must. First target is 4.70.
LXK, Lexmark, Long > 46.50, Computer Hardware- Conglomerates
This stock has been consolidating nicely for the past 3 days after a gap down and 6day sell off. LXK gapped up in the morning and sold off before rallying on strong volume into the close. Above Wednesday’s high of 46.50 we should see 47.25 quickly.
GX, Global Crossing, Long > 7.29, CLEC’s – Telecom, $XTC.X
After a 13 day sell off, this stock saw a reversal candle. Price action was whippy which is typical of reversal days. Tested a double bottom on high volume day and closed up on the day. Above 7.29 we break Wednesday’s high and the 200 ma on the 15 min chart.
Oil Service Sector : Will be looking for signs of reversal in this sector for entry Intraday. Stocks to watch include RIG, BHI, CAM, DO, HAL, KMG, PTEN, NE, TDW & SLB.
SHORTS:
ELNK, Earthlink, Short < 16.30, Internet-Mega ISP’s, $IIX.X
Below here we break an 18 day up trend line (see 60 min chart) which also serves as the neckline of an ascending head and shoulders pattern. Below here the next support is at 15.75 and then 15.40.
STK, Storage Technology, Short < 13.75 or on light vol. Gap up, Storage Hardware
This stock has rallied parabolically into Fibo resistance and the declining 40 ma on the daily. Also, upside volume is drying up. Below here we lose the 20, 40 and 200 period ma’s on the 5 min chart, the 40 ma on the 15 min chart and the 20 ma on the 60 min chart. Next support at 13.30 then 13.05.
AMGN, Amgen, Short < 61.77, Biotech Sector – Top Tier, $BTK.X
This stock reversed off of the 200 ema on the daily to close near the low of the day. Below this key support Amgen should see 60.85 and then 59.40.
EBAY, Ebay, Short < 59.75, Internet Sector – eCommerce, $IIX.X
Ebay has been setting up a classic head and shoulders pattern on the daily chart. Below 59.75 it breaks a key 7 day support zone on its way to breaking the neckline of the head and shoulders set up. The stock closed near the low of the day on Wednesday on increasing volume and is also setting up smaller head and shoulders pattern on the 60 min chart with the neckline at 59.75. This one looks primed to drop hard. First stop should be 59.21 then 58.58 and then the big drop to 56.00. Predicted drop of major head and shoulders set up is to 48.50 + / - .
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com |
