Intraday Investments Stalk Sheet for Wednesday September 5, 2001
In the pre-market on Tuesday the markets traded in an extreme range from up as much as 30 +/-points to down 4 pts at the open. During the trading day on Tuesday we saw much of the same. The Dow was up as much as 230 pts, the Nasdaq up as much as 31 pts and the S&P up as much as 22 pts only to close as follows: Dow up only 48.00 pts, Nasdaq down 35.00 pts and the S&P down .64pts. In addition, the Generals were under attack on the the Nasdaq. The following stocks closed within 10% of the day’s low (not all Nasdaq stocks): CSCO, INTC, ORCL, SUNW, HWP, MSFT, QCOM, CIEN, AOL, TXN, SEBL, TYC, AMCC, NXTL, GLW, KLAC, EBAY, AAPL and AMAT.
Companies in our sector model reporting earnings on Wednesday include: NONE.
On the economic calendar for Wednesday we have: Productivity numbers revised for Q2 coming out at 8:30 am.
This market could really fall apart based upon the way it closed on Tuesday. As always, we will play it as it comes to us but the possibility of a panic sell off seems very possible. Watch out below if we break 1125.50 on the S&P futures, 1421.00 on the Nasdaq Futures and 9869 on the Dow ($DJI).
LONGS:
If the market were to find an up trend tomorrow, we will look at stocks that closed near the highs of the day on Tuesday that saw good volume. As a general comment, I did not like many long setups coming into Wednesday. Nonetheless, we must be cautious of becoming “married” to one side of the market.
MENT, Mentor Graphics, Long > 16.67, Computer Software-EDA, $GSO.X
Above here we break the 200 ma on the 15 min chart and the 40 ma on the 60 min chart. After selling off early on Tuesday, the stock rallied back on strong volume to close near the day’s high.
BSX, Boston Scientific, Long >19.95, Healthcare Equipment & Supplies, $HCX.X
Above here we break Tuesday’s high and a double top started on 8/24/01. This stock closed near the high of the day on very strong volume. It will need continued strong volume to break this critical resistance. May consider going long this one above 19.85 if volume is exceptional.
SLB, Schlumberger, Long > 50.90, Oil Services Sector-Drillers, $OSX.X
SLB showed good relative strength on increasing volume and held up well into the sell off on Tuesday. SLB tested and held Fibonacci support into the close on Tuesday. Above 50.90 we break the 200 and 40 ma’s on the 15 min chart with the next resistance coming at 51.35. SLB will need strong volume and the market behind it to go higher.
SHORTS
CEPH, Cephalon, Short < 58.90, Biotech Sector-Cancer Research/Treatment, $BTK.X
Below here we lose the neckline of what we refer to as a double top head and shoulders pattern. The also happens to be the low of a six day consolidation zone. CEPH rallied early in the day on light volume only to get hammered into the close on a huge spike in volume.
IDPH, IDEC Pharmaceuticals, Short < 58.61, Biotech Sector – Top Tier, $BTK.X
Below here we break the low of a 7 day zone of consolidation. IDPH sold off on big volume on Tuesday to close near the low of the day after forming a double top. Will also consider shorting this one on a light volume rally or gap up into resistance near 60.00.
INTU, Intuit, Short < 36.24 or on light vol rally or gap up to 37.20 - 37.50, Computer Software, $GSO.X
Below 36.24 we lose support of a zone of convergence of the 200 ma and the 200 ema. This stock sold off briskly on big volume into the close on Tuesday. There is some support at 36.00 and 35.50 but should we break the 200 ma’s described above and if the market is weak, we seriously doubt that INTU can hold this minor support levels on its way to 33.50. Since INTU sold off in a parabolic manner into the close on Tuesday we will not be surprised to see a bounce before the carnage continues.
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com
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