Daily Calls -- Sept. 11, 2006

The bulls made a stance today and the major indices, especially NASDAQ, had a good bullish reversal in the first half of the trading session, and the overall volume was above the 3 wk average. On the other hand, all major indices topped out just before 2 pm and steadily trended down till the close, AND, the NASDAQ had to settle below MA200. I am neutral for tomorrow's overall market, and I am not convinced yet that the market is ready to move much higher from the current level.

1. AAPL: L3 on pullback, CS=IDS=69.7. Watch key resistance just below 74. Tomorrow is a big day for AAPL, we shall see if the market will sell on news.

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2. AKS: S1 on top around 12.6, CS=12.7, IDS=13, IT=12.1 (MA200).

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3. CHRW: S3 on top when it approaches MA50=46.1, CS=45.5, IDS=47. It seems made a reversal today, but I am not convinced that it did.

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4. ESRX: S3 on top when it approaches 85, CS=IDS=85.1. The support zone between 80.4 and 80.9 worked again today.

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5. MOT: is it ready to break out the 6 mo high at 24.24? and then 9 mo high at 24.67, and finally 52 wk high around 24.99? watch closely for CTT setup as it is near the top of 6, 9 and 12 month trading range.

6. MU: get ready for a short set-up as it approaches 20, IT=17.51. Look at its 9 month chart, whenever it hit a high, it will subsequently pullback over 10%, the market/NASDAQ is really NOT in a strong bullish trend, and I don't see why the current ascend won't pullback.

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7. NTRI: L1 on pullback, CS=MA50=54.1, IDS=53.5, IT=61.

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8. RBAK: Looks like a testing of 9 month low at 12.4 is likely, and if that fails, it may fall to 11.5, with short interests at 1 yr high (16% of float), I will look for a quick bottom fishing., IT=14.

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9. SNDK: CTT between 53.6 and 59.7, calculate the risk/reward ratio before entering,

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10. TXN: chart points to more upside, but traded down after Q3 update, AH low around 31.22, AH high around 32, closed around 31.5. Stop for the current short position=32.9, but if it breaks 30.5, watch out below.

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11. WFMI: watch for key resistance around 55.5 (MA50), if it breaks that, it may move up to test the MA200 around 61.3.

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12. X: S1 on top when it approachs MA200=58.6, CS=59, IDS=59.3, IT=54.

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