INTRADAY’S TRADING SETUP EMAIL BULLETIN - Wed May 30
Below is a list of stocks we’ll be watching in the session today Wed, May 30 along with key price levels that will lead us to consider entering a trade. We will be generating this list several times a week, sometimes more frequently and sending them out as market conditions warrant.
Please note that just because a stock trades to the alert price specified, it doesn’t mean we’ll necessarily enter… we’ll also be looking at the broader market action, related sector action, intraday price & volume charts for that issue, 3-minute futures charts, market internals/volume, relevant breaking news, etc. So please feel free to ask educational questions of Deron, Ed, and myself in the room as you study these potential setups.
As noted in today’s trading report, the big thing going on right now is the weakness in techs, with the Nasdaq completing the process of giving back all of last Monday’s breakout move today (and then some). But we’ll have to be careful on the short side, as it wouldn’t surprise us to see the Buyers come rushing in for the techs at any point here. Going in flat except for one minor 'short call' position, today we’ll be looking to stay nimble, keep our stops tight, and take the profits when they’re there for the taking!
Based upon customer feedback, we will be enhancing the email bulletin over the coming week. This daily bulletin will then go out to Intraday customers, except for an occasional posting on our SI thread.
Market Recap and Sector Notes
What can we say about Tuesday’s session for the techs? Except ugly, ugly. The wheels came off the internets again, as the $COMPX gave back a big breakout from a week ago (and then some). The Networking, Semiconductor, and Software stocks were heavily sold, giving up big percentages in each sector (4 to 6%, mileage may vary). Refuge for those thinking LONG could only be found in the Drug, Consumer, and Oil sectors, although even Oil gave it up by the end of the session to close +0.38%. The Nasdaq closed the day off 75 points (3.35%), and the Dow closed even… it was simply a very bad day for the techs. Looking into today’s session, the big question is will the buyers step up to the plate for tech, will we consolidate in a narrow/quiet session, or is more tech carnage in store? Stay tuned, we’ll figure it out in real-time tomorrow and call em as we see em’ as it plays out.
Potential Shorts
ACPW < 27 resistance $30 area; reversed Tuesday
AEOS < 36.70 with weakness in $RLX.X
AFFX < 38.80 rolling over to resume downtrend?
BEAS < 35.65 with more weakness in Software stocks, Internets, B-B’s
EBAY < 59 with weak internets
FDRY < 18.50 with more NWX carnage
GNSS < 25.25 with more weakness in $SOX
GSPN < 14 threatening major support
IIX.X < 203.5 watch for more carnage in the internets
IRF < 60.58, no support until 57.30 Stop 62.40
LOW < 69.75, Target of 65.75 and a stop of 71.35
MCDT < 33.50 with more weakness in networkers
QQQ < 46 on a bounce if we tank again… tightly-stopped entry
PDLI < 76 with weak Biotechs. Beaut of a short setup… can you tell us 3 reasons why?!
RIMM < 35 with weakness in Hardware, PALM, HAND
$RUT.X < 500 watch the small-caps
TIVO < $9.00 …we had a nice short scalp Friday, guess we should have stayed short!
TYC short < 57.25
VTSS < 27.10, Target of 24.50 and a STOP of 28.40
WMT < 51.00 below neckline. Target 47.50 (head & shoulders) Stop 200ma on 60min or 52.40
XOM short < 88.50
Potential Longs
AFCI >21.0 nice hammer, tail after pullback (with rebounding $NWX/$SOX)
ALTR > 25.50 w/rebounding $SOX
AMZN >18 watch for breakout if $IIX rebounds
BRCD > 42.20 if $NWX rebounds, strong
$DRG.X >403 watch for follow-thru to the upside
ERTS > 59.20 with rebounding techs, software
GENE > 13.40 scalp long
HGSI > 70 if $BTK strong
HWP > 30.25
IDTI > 41.50 with rebounding $SOX
$INDU > 11,047 watch Dow for clue to broader market
JNJ > 97.50
MCHP > 24.40 with rebounding $SOX
NVLS > 50.5 w/rebounding $SOX, AMAT
RFMD > 28.50 with rebounding $SOX
WMT > 51.95 with target of 53.00 (we’ll discuss the two setups/ways of trading it)
“Most Extended” Nasdaq Stock Awards
The following stocks appear to have decoupled from gravitational forces in their runs to the upside… getting WAY out in front of their 20-period Moving Averages. Here are a few of the worst offenders to the upside amongst the most volatile, high-volume Nasdaq issues, along with the % they are trading above their rising 20-period simple MA’s (we’ll do NYSE issues tomorrow):
TIVO (71%), GENE (47%), IMNR (38%, CELG (34%), GYMB (27%), NETA (19%), GNSS (17%), PDLI (15%)
On the short side, the following high-volume, high-volatility stocks are extended to the downside making them prime candidates for bounce-back rallies (watch for the right price action and other criteria we’ll discuss in the room):
TQNT (26%), RBAK (23%), CTLM (23%), GSPN (22%), CMRC (20%), NUFO (19%), SAWS (18%), AETH (17%), JNPR (17%), RMBS (17%), CORV (17%), AMCC (16%), EFII (15%)
Basing Stocks
The following stocks appear to be building BASES after selling off... we'll track them for signs that they are starting to recover... some of these may make for very nice multi-day, or even multi-week LONGS at some point:
AKAM, ARTG, AVCI, AVNX, EPNY, GSPN, HAND, INKT, INTC, JDSU, JNPR, LVLT, MACR
MCHP, NEWP, NTAP, NTIQ, NUAN, NUFO, NXTL, ORCL, PWAV, PWER, QLTI, RBAK, RMBS
SAPE, SCMR, SEPR, SSTI, STOR TIBX, TXCC, VRSN, YHOO
Volatility Honor Roll
Here is a list of the MOST VOLATILE stocks on the Nasdaq, sorted in list of decreasing volatility. The most volatile stock in the Nasdaq (based on a 5-day average of the daily range) is NVDA (an incredible 6.8 point daily range). The least volatile stock in this list (SANM) trades with a 2.4 point daily range.
NVDA, FCEL, CCMP, PDLI, VRTS, QLGC, ABGX, GILD, WEBM, MERQ, BLDP, BRCD, DIGL, VRSN, CHKP, ENZN, EMLX, GHSI, SEBL, ISSX, GENZ, PLUG, NETE, IDPH, TMPW, CMVT, KLAC, MUSE, QCOM, BRCM, OPWV< EBAY, SMTC, RIMM, PMCS, PWER, ISIL, CPST, IDTI, RFMD, MEDI, LLTC, VRTX, SYMC, VSEA, XLNX, MCDT, ERTS, MXIM, CIEN, IMCL, AFFX, ONIS, GMST, JNPR, SCIO, TWTC, MANU, NVLS, MLNM, NEWP, QSFT, EXTR, AMGN, SNPS, VSTR, VTSS, CREE, AMAT, CHIR, SANM in that order. |
