Intraday Investments Stalk Sheet for Thursday, August 16, 2001
In overnight action, the Nasdaq Futures are down 3.50 points and the S&P futures are down 1.70 points as of 7:00 pm edt.
Companies in our sector model reporting earnings on Thursday include: CIEN, AGIL, ADI, DELL, GPS, HWP, KSS and MXIM. Only CIEN reports in the morning.
On the economic calendar for Thursday we have: 8:30 am edt: Initial Jobless Claims for 8/11, CPI and CORE CPI for July, Housing Starts and Building Permits for July, and at 10:00 am edt: Philadelphia Fed for August.
Although the Nasdaq Futures broke support on Wednesday, we have to be very careful of a sudden reversal in the market since the Nasdaq Trin is overextended at 3.079. Almost every time in the past 3 months when the $TRIN-Q reached these heights, we had a reversal in the market the next day. Also, don’t be surprised if we see a gap down and a sharp reversal back into the trading range. It has not been uncommon in this market to get blindsided by Fed rate cuts or sudden and unexplained analyst upgrades. Be careful.
LONGS:
The Oil Services Sector on reasonable Fibonacci pullbacks into support. Will monitor on a case by case basis on Thursday.
ELNK, Earthlink, Long > 13.74, Internet Sector – Mega ISP’s, $IIX.X
Above here we break the 40 ma on the 60 min chart. Will also buy this one on a gap down in the morning or on a pullback to 13.40 area. This stock rallied to close near the day’s high on Wednesday on great volume. Showed lots of strength against a weak Nasdaq.
CNET, CNET Networks, Long > 11.10, Internet Sector-Online Advertising, $IIX.X
This stock showed great relative strength to the Nasdaq on Wednesday and therefore should be one of the first stocks to rally if the market turns. Above 11.10 we break the 20 ma on the 60 min chart and the 200 ma on the 5 min chart. First Target at 11.26. This stock saw great volume on Weds.
LXK, Lexmark, Long > 47.60 or pullback to 46.90 area, Comp Hrdwre –Conglomerates, $HWI.X
Above 47.60 we break Weds high. This stock showed excellent Relative Strength in a short market and also saw great volume on Wednesday. Will also buy a pullback as stated or minor gap down on light volume.
SHORTS:
RFMD, RF Micro Devices, Short < 26.40, Semiconductor Sector-Mixed Signal DC plays, $SOX.X
Below here we break the neckline of a head and shoulders on the daily and the 200 ema on the daily. We also break the 200 ma on the 60 min chart. This stock closed near the low of the day on strong volume.
EBAY, Ebay, Short <59.60, Internet Sector – eCommerce, $IIX.X
Below here EBAY loses a key support zone established on the right shoulder of a head and shoulders pattern on the daily chart. Although there is spotty support all the way down to 58.58, The next major support comes at 57.00 (200 ema on the daily).
SYMC, Semantec, Short < 44.00 or rally to 45.65 area, Comp Software-Productivity, $GSO.X
Below 44.00 we should be able to take out Wednesday’s low of 43.75 on our way to 43.00 (predicted drop based on head and shoulders on the 60 min chart). A rally to 45.65 would be into resistance of the 200 ma on the 60 min and the neckline of the head and shoulders.
ODP, Office Depot, Short < 12.63, Retail Sector – Specialty Stores, $RLX.X
Below here we lose the 200 ma on the 5 min chart, the 40 ma on the 15 min chart, the 20 ma on the 60 min chart and Wednesday’s low. Hanging man candlestick formed on heavy volume gap down on Wednesday.
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com
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