Daily Calls Oct. 13, Friday, 2006

The bulls just ran all over the bears, the major indices extended further into the overbought territory, and it did not seem to bother bulls at all, on the other hand, early bears must be in such pain, I wonder if they are capitulating. I realize that I started to feel unsure about any short-on-top approaches, and that itself is actually a bearish sign as many trades like me who has had a bearish bias towards the market have started to doubt themselves.

1. AAPL: consider S3 on top if it spikes towards 76 tomorrow morning, stop just above 76.2.

2. AKAM: S3 on top only when it spikes towards 51.21/52 in AM, stop just above 52. IT=49.

3. AKS: S3 on top when it spikes towards 15, stop at 16, IT=13

4. AMD: S2 on top when it spikes towards 25.25 in AM, stop just above 25.5, IT=23.

5. CHAP: speculative S3 on top when it spikes towards 40 in AM with a stop just above 40.

6. COST: day-trading, S3 on top when it spikes towards 55 in AM with a stop just above 55.

7. CVS: S1 on top, entry zone 31.8-32.5, stop just above 32.5.

8. NCTY: S2 on top when it spikes towards 24.5 with stop just above 25. key resistance zone around 23.5-23.6.

9. OS: speculative S3 on top when it spikes towards all time high around 54, stop just above 54.

10. QCOM: S2 on top if it spikes toward MA200=41 in AM, stop just above 41.

11. SNDK: S3 on top when it spikes towards 59.4 in AM with a stop just above 59.5.

12. SONS: L1 on bottom, entry zone 4.75-4.85, stop just below 4.7. It did not participate in today's strong rally at all, be patient with it.

13. WFMI: S3 on top when it spikes towards resistance around 65.5 with a stop just above 65.5.

14. X: S2 on top if it spikes towards 66.5 with stop just above 67.

15. DNA: L3 on bottom if it spikes down towards 81.5, with stop just below 81.25

16. ESPW: raised guidance in AH, shares spiked over 20% from 36.35 to near 44. traded mostly 41 and 44.1, with solid support 42.6 and resistance near 44. It is a low float stock (around 10.5 m) and high short ratio (over 12%).