Daily Calls -- Sept. 6, 2006

The market was very choppy today, but the bulls ended with another victory, and the market is further extended in the overbought condition. Technically, almost all indicators are bullish. But somehow I deeply suspect the low volume rally in overbought territory, and feel uncomfortable to chase the bulls at this stage. On the other hand, not much case can be made for bears either. This is probably the best time to be very cautious or just stay on the sideline.

1. AAPL: L2 on pullback use 69.68 as stop, IT=74. Solid break-out on good volume.

@@ Grade: B

2. AEOS: S3 on top use 40.5 as stop, IT=38. Be nimble when shorting a stock like this one.

@@ C

3. AMD: watch for key resistance at MA200=26.7, I suspect that the current bull run may test $30.

4. AMZN: may consider building short position when it enters 32.8-34.5 zone, CS=34.5, IDS=MA200=35.4, IT=29.

@@ C

5. BRCM: S2 on top when it approaches 29.75, stop=30.4, IT=26.3

@@ C

6. COST: S2 on top when it approaches 49.5, CS=50.05, IDS=MA200=51.7, IT=47.5

@@ C

7. EBAY: S2 on top when it approaches 30, CS=30, IDS=31, IT=27.

@@ C

8. JNPR: S2 on top when it approaches 16, CS=16, IDS=17, IT=14.

@@ C

9. MDT: S1 on top use 47.2 as stop, IT=45

@@ C

10. OCR: S2 on top use 46 as stop, IT=43.

@@ B

11. OS: watch key resistance around 54.

12. RBAK: a nice hammer, but the high volume decline with both MA50=17.6 and MA200=17 hang in overhead, I suspect that the rebound is shortable, CS=17.6, IDS=18.2

@@ A

13. SNDK: S2 on top, CS=59, IDS=59.7, IT=55 (especially if it breaks 57.5).

@@ A