Intraday Investments Stalk Sheet for Thursday September 6, 2001
Wednesday’s trading appeared to be the mirror image of Tuesday as we saw a sharp rally after harsh selling in the morning and well into the lunch time session. After hours the Nasdaq Futures are up 10.00 pts and the S&P futures are up 2.50 pts as of 9:45 pm edt.
Companies in our sector model reporting earnings on Thursday include: NSM
On the economic calendar for Thursday we have: Initial Jobless Claims for 9/01 at 8:30 am and NAPM Services for August at 10:00 am edt.
The markets seem prepared to bounce in the morning but rallies have not been sustainable in this market. As always, we will wait for the market to provide direction and trade accordingly.
Generally speaking, I was not impressed by the setups from this evening’s research and will evaluate all trades carefully before taking positions tomorrow.
LONGS:
T, AT&T, Long > 19.48, Major Telecom Sector-Major IXC’s, $XTC.X
AT&T closed at the day’s high on a solid increase in volume. Above 19.48 we break above the head of a head and shoulders pattern. The predicted rally from such a breakout would be to the 20.30 area.
AMGN, Amgen, Long > 65.80, Biotech Sector-Top Tier Heavyweight, $BTK.X
Above here we break the head of a head and shoulders formation. AMGN showed good relative strength during a vicious morning/mid day sell off in the markets. Above 65.80 we also break an 8 day zone of consolidation. Look for strong volume and a cooperative market for AMGN to breakout. Predicted run is to 67.85.
BRCM, Broadcom, Long > 33.36, Semiconductor Sector-Mixed Signal Datacom, $SOX.X
BRCM rallied on a huge increase in volume to close in the upper third of its trading range on Wednesday. Above Wednesday’s high of 33.36 we should see 34.10 if volume remains strong. Above 34.10 we could see 34.80.
SGP, Schering Plough, Long > 40.00, Drug Sector – Second Tier Drug Co’s, $DRG.X
SGP closed near the highs of the day on a strong increase in volume and showed very good relative strength against a weak market in the morning session. Above 40.00 we break the neckline of an inverse head and shoulders that began forming on 07/31/01. The predicted rally is to 42.20 with resistance along the way at 41.10.
SHORTS
HRB, H&R Block, Short < 38.53, To be added to sector model
This stock gapped down severely on September 4th breaking its uptrend line. Since then it has rallied back into that trendline. Below 38.53, HRB should see 38.25 then 37.75.
AGE, AG Edwards, Short < 40.26, Broker/Dealers-Traditional Brokers, $BTK.X
Below here AGE loses the neckline of a head and shoulders pattern and the low of a zone of consolidation dating back to may of this year. The predicted drop of this move would be to 38.00 filling the gap created on 04/18/01.
Trade Well Today!
Ed, Steve & Deron
General Partners
intradayinvestments.com
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