Wednesday, September 20, 2006

Daily Calls -- Sept. 21, 2006

It was some weird 2:45 hr after the FOMC meeting, the market was sold down in large volumes right after the announcement for about an hour (see intra-day charts of SPY, QQQQ and DIA), but selling dried out and bulls managed to recover most of the loss with significantly weaker volume into the close. As I expected, the FOMC decision did not provide fuel for more upside, however, it seems that bears were also hesitate to attack. I think tomorrow will be a crucial day, whoever wins the battle with significant advantage will determine the near-term market trend. My hunch is if bulls cannot move it any higher, bears will step in.

1. BIDU: for day trading, CTT between 84.5 and 88.5. Also, L2 on bottom when it approaches 82 can be considered, IDS=MA50=80.

@@ F

2. COST: it is set to test key resistance around 52.5, the next one will be 54.1.

@@ C

3. DVN: day-trading, consider S1 on top use 65 as stop, also L3 on bottom when it approaches MA200=60.4, CS=60, IDS=59. I think the first test of MA200 will bounce off.

@@ C

4. ENER: CTT between MA50=34.5 and MA200=37.1

@@ B

5. NTES: looks like it is breaking down, S1 on top use 17 as stop.

@@ A

6. SBUX: watch the key resistance zone between 35.5 and 36.

@@ C

7. SONS: L1 on pullback use 5.3 as stop reference. Missed the big move today.

8. TIBX: L1 on pullback use 8.8 as stop.

9. WFMI: watch key resistance at MA200=61.1, next stop will be around 64.

10. XRTX: earning play, reported Q3 in AH, beat estimates but lowered Q4 guidance, traded between 16.7 and 19, but mostly between 17.7 and 18.5, closed around 18.45. Key levels: 16.7, 17.5, 17.7, 18.5, 19.4, 19.7, MA50=20.6

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