Daily Calls -- Sept. 7, 2006

Wow! Just when you thought that almost everything looked bullish, the market went down hard. Judging from the volume, I feel that the decline was driven more by the nervous bulls than the aggressive bears. I suspect that bulls may see this as overdue technical correction of the extended overbought condition, will try to regroup tomorrow, and I am not sure that bears are ready to come out in force. However, today's big drop in NASDAQ has clearly signaled that the short-term top is close, if not already set, therefore, from now on, any rebound should be used as short set-up opportunities.

1. AAPL: L3 on bottom use 68.5 as stop. Because of the possible introduction of new products on Sept. 12 meeting, I feel that the "buy on rumors" mentality is not over yet.

@@ Grade: B

2. AMZN: S2 on top around 31.2, CS=32, IDS=32.3, IT=29.

@@ C

3. BRCM: S2 on top, CS=28.5, IDS=29.1, IT=26.2

@@ B

4. CHRW: S2 on top, CS=44.2, IDS=45, IT=42. It has closed below MA200=43.7 for the first time in over a year, a break down through 42 may trigger a quick drop.

@@ B

5. NTAP: CTT-ready, S1 on top around 34, CS=34.5, IDS=35, IT=32 (MA200=31.8).

@@ B

6. RBAK: S1 on rebound when it approaches 15, CS=15.2, IDS=15.8, IT=12.4.

@@ C

7. RIMM: L3 on bottom when it approaches 75, CS=74, IDS=MA200=73.7.

@@ C

8. SNDK: L3 on bottom use MA200=52 as stop reference, or S2 on top, CS=56.5, IDS=57.3

@@ B

9. TXN: keep eye on key support at 31 (both MA50 and MA200), if it closes below it with a bearish candle, it will at least test 29.


10. WLT: S1 any rebound (around 52.5) use MA200=53.7 as stop reference, IT=47.

@@ D

11. AMD: looks like MA50=23.6 will be breached tomorrow, should have some support around 22.5 or it will test 21.