INTRADAY'S STALK SHEET FOR TUESDAY, JUNE 19 2001
Nimble has been the word of the day almost every day in this choppy market. Although we have been in a downtrend for several days now, this selling activity doesn't seem to have the same negative feel to it as we saw in March and early April of this year. The point...be careful! There's lots of talk out there about another big cut by the Fed and many tech stocks are approaching their April lows. Remember, all of the "Stalk List" plays need to be observed in context of both the broader market and sector activity. Finally, don't get greedy (take profits) and use protective stops religiously.
GENE, Genome Therapeutics, Biotech Sector, BTK.X.,
Short below 11.51 a.k.a. the 200 m/a on the daily chart. Broke out and failed Monday. looks primed to lose support. May be in play late in the day as a swing trade.
DNA, Genentech, Biotech Sector BTK.X
Short below 50.50. DNA have trouble getting above 200 m/a on 60 min chart.
CEPH, Cephalon, Inc., Biotech Sector, BTK.X
Short below 65.41 (rising 20 m/a on daily). If CEPH loses 65.41, next stop would be 64.00 which would constitute a trendline break.
LEH, Lehman Brothers, Broker/Dealer Sector, BKD.X
Long above 68.75 (200 m/a on daily chart)
FTU, First Union, Banking Sector, BKX.X
Long above 34.24. Although a breakout seems unlikely, this stock closed near the high of the day on increasing volume. If we break through this tripple top and hold, FTU could run nicely. This is a high-risk play due to the double-top in the 60-min timeframe.
BAC, Bank of America, Banking Sector, BKX.X
Long above 60.20. Similar scenario to FTU. If it breaks above resistance on strong volume, BAC could run, run, run.
Watch for reversal up in $NWX.X. Potential long plays in this sector if it gaps down on light volume and Nasdaq cooperates. Watch JNPR, CIEN, BRCD, SCMR.
NVDA, Nvidia, Semiconductor Sector, $SOX.X
Short on light volume gap up or if it trades below 90. For a moment today, NVDA finally broke its trendline. Although it has gapped up slightly after hours (on the ORCL news), we will look to short NVDA on a low volume gap up or when it trades below 90.00.
AETH, Aether Systems, Wireless/Lan Sector, XTC.X
Swing Long on light volume gap down or if stock shows sign of consolidation. This has more of the makings of a swing play. Key observation: there has been divergence between the RSI and the price of the stock for the past 3 days. This is typically a strong sign that a reversal is near.
SCMR, Sycamore, Networking Sector, NWX.X
Swing Long on light volume gap down. Major divergence between RSI and this stock's price. Also, we are within one dollar of the all time low set in early April. Ideally we should wait for price confirmation of a reversal before taking SCMR on as a swing short.
GPS, The Gap, Retail Sector, RLX.X
Long above 32.10 on solid volume. This stock has been consolidating nicely for 13 days. It is essential that the retail sector be behind this stock. My only concern is that we have broken the neckline of a head and shoulders formation in the $RLX.X and we rallied up to the neckline on Monday and sold off to close in the middle of the range on the RLX.X.
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