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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (35926)	1/18/2002 3:02:31 AM
From: Johnny Canuck	Read Replies (2) \| Respond to of 69344

With the expectation that Mr. Bear will take the whip to the market in the morning traders should be getting dip buy lists ready. Should MOT drop early tomorrow traders should look for a scalp entry in the $13.50 area. MOT looks ready for a reversal and would be testing $15 tomorrow but for today’s after hours news. MOT chart to consider: stockcharts.com[h,a]daclyiay[pb15!b30!f][vc60][iUb14!La12,26,9] ORCL is a nice short candidate here and was a great pickup in the mid $17’s today on the short side. A move to $16 is in the cards for this one. ORCL chart to consider: stockcharts.com[h,a]daclyiay[pb15!b30!f][vc60][iUb14!La12,26,9] GNSS reacted exactly as we thought it would on its earnings release tonight, tanking on the news. Traders playing in the money puts should be feeling really good right now as the stock is down $5+ in after hours. Traders playing should consider taking profits on January puts (as they expire tomorrow!). Traders with February puts should consider taking half off the table in the morning and riding the rest as GNSS’ conference call was not very promising. From our Weekend Newsletter: "Traders should look at shares of GNSS for a put option play this week. GNSS has put on a remarkable run since September, pushing its PE to an astounding 225! This is yet another example of blind fund managers chasing a stock that will eventually fall hard on its ass. GNSS reports earnings on Thursday and is expected to beat. Even if they do beat and raise guidance for coming quarters its valuation is still way too rich at this price. Still, traders know how boneheaded most fund managers are and so put options are probably the best way to play this stock. Traders should be looking to the February in-the-money calls. GNSS’s max pain point for January is $65 so traders may find a SMALL entry in the January $70’s a good gamble. Keep a close eye on GNSS’s trading action this week. The stock recently made a new 52-week high at $74.90. A put entry in the $74-$75 area may prove profitable. Again, traders should realize bloated stocks such as this that are pumped ever higher! by the fundies can be risky plays on the short side. It is for this reason that using a put-option strategy is more appropriate if playing. Playing around with fibonacci analysis and using the November low of $41.76 and recent high of $74.90 we get a 38% fib retrace target of $62.24." GNSS’s bloated chart to consider: stockcharts.com[h,a]daclyiay[pb200!b30!f][vc60][iUb14!La12,26,9 The QQQ chart is not very bull friendly at this point. QQQ chart to consider: stockcharts.com[h,a]daclyiay[pb15!b30!f][vc60][iUb14!La12,26,9] Traders should keep an eye on our favorite biotech ELN. The stock was upgraded today (uh oh!) but despite that fact should have a good day tomorrow as money looks for a safe haven. ELN is attempting to break out here and has been undergoing good accumulation over the last several days. ELN is up almost $2 from, our alert this weekend. ELN chart to consider: stockcharts.com[h,a]daclyiay[pb200!b30!f][vc60][iUb14!La12,26,9] buysellshort.com