Intraday Investments Stalk Sheet for Monday, August 13, 2001
After selling off briskly at the open on Friday, all three major indices, the Dow, the S&P and the Nasdaq all rallied for the majority of the trading day thereafter. However, all three indices are all in the process of forming Head and Shoulders patterns on the 3 min chart which is par for the course in this choppy market environment. To continue the anemic rally started on Friday, it appears that we may have to gap above Friday’s highs on all three indices in order to move higher on Monday.
In after hours action, as of 8:44 pm edt 08/13/01, the Nasdaq Futures are up 5.00 pts and the S&P Futures are plus 2.10 pts.
There are no companies reporting earnings from our sector model for Monday August 13, 2001.
Economic data due out Monday includes: No economic news due out Monday.
LONGS:
Q, Qwest Communications, Long > 24.80, Telco Svc Providers –ILEC’s, $XTC.X
Above here we break the high of a 6 day band of consolidation. This stock will need to see a significant pick up in volume to break out. It will also need a strong sector and market.
JNJ, Johnson & Johnson, Long >55.05, Drug Sector-Major Drug Co’s, $DRG.X
JNJ closed near the high of the day on a strong burst in volume. JNJ broke out to a new 52 week high on Friday and hasn’t traded this high since late 1997. Typically, support or resistance levels that are more than 2 yrs old don’t interfere greatly with a stock’s price action. The Market and the volume must remain strong as this market has been unforgiving of breakouts.
MRK, Merck, Long >69.44, Drug Sector-Major Drug Co’s, $DRG.X
MRK broke and closed above the high of an 8 day band of consolidation. This stock also closed near the high of the day. Above Friday’s high of 69.44 we should see 70.10 and should then begin filling the gap from 7/2/01.
ALTR, Altera, Long > 30.15, Semiconductor Sector-Semi Cust. Logic, $SOX.X
This stock sold off but rallied from the rising 40 ma on the daily 3 days in a row now. If this stock can see strong volume it should be able to break the 2 day high at 30.15 on its way to 30.55. Next resistance above 30.55 is 31.00.
XLNX, Xilinx, Long > 39.95, Semi Sector – Semi Custom Logic, $SOX.X
After selling off at the open on Friday, this stock rallied back to close near the high of the day on increasing volume. Above 39.95 we break critical resistance of the 20 and 40 ma’s on the daily and the declining 40 ma on the 60 min chart. This stock will need good volume to continue the rally.
SHORTS:
AFCI, Advanced Fibre Communications, Short < 25.16, Networkers-NGPS & ME, $NWX.X Perfect head and shoulders set up on the daily chart. Below 25.16 we begin the break of the neckline with the last leg of support around 24.91. There should be some support on the daily at the 200 ema at 24.50. Below 24.50 we fill the gap to 22.75.
KEY, Keycorp, Short < 27.10, Banking Sector-Regional Bank, $BKX.X
KEY is forming a perfect Head and shoulders formation on the daily chart. This stock sold off on a big burst of volume on Friday to close near the low of the day. If the Banking sector is weak on Monday and downside volume remains strong, Key should be able to break the neckline at 26.99 on its way to 26.40.
AOC, AON Corp,Short < 38.65, Insurance Sector, $IUX.X
This stock has made a parabolic unsustainable run over the past 4 trading days. The RSI on the 60 min chart is beginning to diverge from the price of the stock. Selling pressure began to pick up on Friday as the stock closed in the danger zone. Below 38.65 we have support at 38.40, 38.00 and 37.50. This one looks due for a rest.
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Ed, Steve & Deron
General Partners
intradayinvestments.com
Visit us at Silicon Investor: Subject 51208
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