Intraday Investments Stalk Sheet for Tuesday, August 7, 2001
In overnight action, the Nasdaq Futures are down 2.50 pts and the S&P futures are up 1.80 pts as of 11:00 pm edt. Although the action in the markets was quite negative on Monday, somehow the Nasdaq managed to hold on to key support at 1708 to 1710. The bad news is the Naz consolidated and closed near the lows of the day which usually signals further selling. The S&P futures also closed near the day’s lows. We expect to see follow through selling in the morning on Tuesday.
On Tuesday, firms in our sector model reporting earnings include: BRL (to be added), CEPH, ADVP, BLDP, CSCO, CCU and EMLX. Needless to say, CSCO will be closely followed by the market. CSCO is due to report after the close on Tuesday.
Economic data due out on Tuesday includes: Consumer credit for June and Q2 Productivity numbers. Consumer credit growth is a big concern for the markets and the Fed since the wealth effect has been beaten from the markets. With equities dropping, the consumer has little to fall back on to compensate for the burgeoning consumer debt. Home equity loans and cash out refinances could provide some cash flow relief as mortgage rates remain low.
LONGS:
LXK, Lexmark, Long > 47.75 or a pullback on light vol to 47.15 area, Computer Hardware-Conglomerates, $HWI.X
This stock rallied well on light volume against the market on Monday and consolidated most of the day to close near Monday’s highs. We will need strong volume on Tuesday to sustain this rally. We will see resistance at 48.10 and will only go long above 47.75 if the volume is strong. On a light volume pullback we will also consider entering this one long at Fibo support at 47.15 area but only if sell off is on light volume.
ELNK, Earthlink, Long >15.20, Internet - Mega ISP, $IIX.X
Reversal candlestick formed on the daily chart today. After selling off sharply at the open, ELNK reversed and closed near the Monday’s high. Only concern is that volume was light. Volume must pick up for this one to rally further. Above 15.20 (Friday’s trading range high) we will see resistance at 15.55 (200 ma on the 60 min) with the next target of 16.00 (200 ma on the 15 min chart).
STJ, St. Jude Medical, Long > 65.90, Healthcare Equipment & Supplies, $HCX.X
Stock showed first signs of reversing its down trend on Monday after 4 straight days of hard selling. Above 65.90 we break the 200 ma on the 5 min chart on our way to resistance at the 200 ma on the daily chart at Monday’s high of 66.38. Strong volume is a must if we this stock is to break through these key resistance zones.
SHORTS:
ADPT, Adaptec, Inc., Short < 11.58, Computer Storage- Peripherals
Below here we break the lows of the past 5 days trading range. Stock sold off on big burst of volume into the close and closed near Monday’s low.
IRF, International Rectifier, Short < 37.65 or on rally above 38.25 area, Semi’s-Mixed Signal, $SOX.X
Stock has formed a classic head and shoulders on the 15 min chart and has broken the neckline. On Monday, we rallied back up to neckline. Below 37.65 we break the 200 ma on the 15 min chart. Major resistance at 38.50. Will short either set up.
LRCX, Lam Research, Short <29.26, Semi Equipment
Stock closed near the low of the day on Monday on solid volume. If the Nasdaq continues selling off on Tuesday, LRCX should follow. Below here we break the 200 ma on the 15 min chart and a key Fibo support zone. First support at 29.00 with ultimate target of 28.00.
SCOR, Syncor International, Short < 32.70, Small Cap
Below here we break the 20 ma on the 60 min chart 200 ma on the five minute chart. This stock has formed a double top at the 32.80 area and sold off sharply into the close on Monday. Parabolic move from 28 to 34 in the past three days is not likely sustainable in the current market environment.
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com |
