Intraday Investments Stalk Sheet for Friday, August 31, 2001
In overnight action, the Nasdaq Futures are down 9.50 points and the S&P futures are down.60 points as of 9:42 pm edt.
Companies in our sector model reporting earnings on Friday include: No companies reporting.
On the economic calendar for Friday we have: University of Michigan Consumer Sentiment- revised for August, Chicago PMI for August and Factory Orders for July
We broke another key support zone on the $DJI when we lost 10,000 today. The Dow is in big trouble but we would not be surprised to see a bounce in the markets since the TRIN-Q and the TRIN-N both closed the day above 2.00. This is particularly high for the TRIN-N. Also, we a witnessing a disproportionate number of stocks setting new 52 week lows vs those setting new 52 week highs. During our research this evening we found 50 stocks that set new 52 week lows vs only 2 stocks at new 52 week highs (of the stocks we screen). This is usually a good contrarian signal when taken into consideration with other key information. There seems to be some panic in the markets over the past several days but we are far from total capitulation. Be careful.
LONGS:
PMTC, Parametric Technologies, Long > 7.07, Computer Software-Manufact. Support, $GSO.X
Above here we break the 20 ma on the 60 min chart and a zone of resistance formed on Wednesday. PMTC closed near the days high forming a bullish hammer on decent volume. Volume must increase and the market will need to be behind PMTC for it to break out. Resistance at 7.13 and 7.18.
BKZUK, Banking Sector Puts, Short the Sept 850 puts (may do a spread for risk control)
The banking sector is due for a turn around and showed signs of stabilizing on Thursday. Currently the BKZUK Sept 850 puts are paying 20.00 bid by 22.00 ask as of Thursday’s close.
BAC, Bank of America, Long >60.55, Banking Sector-Money Center Bank, $BKX.X
BAC saw great volume on the on a reversal day on Thursday. Above 60.55 it and with continued good volume and a cooperative market, BAC should be able to take out 60.95 on its way to 61.75.
SHORTS
CHIR, Chiron Corp, Short < 47.33, Biotech Sector-Heart Disease Research, $BTK.X
Below here we break the 2 day low and the neckline of a head and shoulders formed on the 60 min chart. Next support is at 46.75 and the predicted drop of this H&S pattern is to 45.50.
BBH, Biotech Holders Trust, Short < 124.50,
Below here we break the 200 ma on the 5 min chart on our way to Thursday’s low of 124.01. Below here we should see 123.00.
IMCL, Imclone, Short < 51.00, Biotech Sector-Cancer Research/Treatment, $BTK.X
This stock closed near the low of the day on increasing volume. Below 51.00 we should see some support at 50.50 and then 50.00.
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com
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