Intraday Investments Stalk Sheet for Wednesday, August 8, 2001
In overnight action, the Nasdaq Futures are down 15.50 pts and the S&P futures are down 3.70 pts as of 10:12 pm edt. Comments from the CSCO conference call pulled the futures down after the close (see below).
On Wednesday, firms in our sector model reporting earnings include: AET, XOMA and INHL.
Economic data due out on Tuesday includes: Wholesale Inventories for June. As wholesalers make up 27% of business inventories and sales, a slower than expected inventory correction due to sales weakness has put a strain on any economic recovery. The inventory to sales ratio is now at a 2 year high. Many economists expected a speedy inventory correction but so far this has not been the case. Comments out of Cisco after the close on Tuesday support the concern over inventories:
SAN JOSE, Calif. (CBS.MW) -- Cisco Systems eked out a quarterly net gain of $7 million late Tuesday as the networking gear giant's bottom line, excluding charges, matched analyst targets. But shares fell as top executives wouldn't say that the worst was over.
CFO Larry Carter said revenue during the current quarter could be the same as, or as much as 5 percent lower than, the just-ended fiscal fourth quarter.
The warning sent Cisco shares down 1.9 percent to $18.90 in after-hours Island ECN trading. They had fallen during the day but then climbed in the first part of the after-hours session, after the earnings report but before the warning.
"No one knows when capital spending will bottom out and turn up," CEO John Chambers said during a conference call. "While we would like to say the bottom has been reached, we are not there yet."
If the market gaps down like we now expect from the CSCO warning, we will be looking to buy the gap down.
LONGS:
FLEX, Flextronics, Long > 27.00, Computer Hardware-Manufacturing, $HWI.X
Above 27.00 we break key moving average resistance on the 5 and 60 min charts and the neckline of an inverse head and shoulders. First target 27.50 then 27.75.
QSFT, Quest Software, Long >28.40 or on Fibo pullback to 27.20 – 27.85 zone, Software- Applic. Mgmt, $GSO.X
Above 28.40 we break the 40 ma on the 60 min chart, the 200 ma on the 15 min chart and the high of the day for Tuesday. We will also consider buying a pullback to fibo support on modest volume. First target will be 30.00 – 30.25 range.
PMTC, Parametric Technologies, Long > 9.15, Software-Manufacturing Support, $GSO.X
Above here we break the 2 day high and the 40 ma on the 60 in chart. This stock showed great relative strength on Tuesday and consolidated near the day’s high into the close. Tuesday was first reversal day after 3 days of hard selling into a double bottom. First target 9.25 then 9.50 – 9.60.
SBUX, Starbucks, Long > 18.13, Retail – Consumer Non Cyclical, $RLX.X
Above here we break the 200 ma on the 15 min chart and the 40 ma on the 60 min chart on our way to Tuesday’s high of 18.20. Volume was not spectacular on Tuesday so we will need to see increased volume to continue the rally. Above 18.20 expect to see resistance at 18.50 then 19.00.
SHORTS:
SCOR, Syncor International, Short < 32.50, Small Cap
Below here this stock should be able to take out 32.30 on its way to 31.70 then 31.25.
HGSI, Human Genome Sciences, Short <48.70, Biotechs-Top Tier Biotech, $BTK.X
Stock closed near the low of the day on Tuesday on increasing volume. Below here we break a key support zone established over the past 8 trading days and the 20 ma on the daily. First target should be 47.50.
DNA, Genentech, Short <41.50, Biotechs-Top Tier, $BTK.X
Below here we lose Tuesday’s low and a key support zone established over the past 8 trading days. Next support at 41.10, 40.75 and 40.00.
CHKP, Checkpoint Software, Short < 42.20, Software-Security, $GSO.X
Below here we break Tuesday’s low, the 200 ma on the 60 min, the 20 ma on the daily and the neckline of a head and shoulders pattern. Target of 41.00 with some minor support at 41.85.
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com |
