Daily Calls -- Oct. 19, 2006

The action in the past two days shows signs of top-reversal, especially for NASDAQ which appears in the process of putting up the triple top. The bearish divergences are more evident in many of the stocks on my list. It might be the time to really look for short-on-top setups.

1. AAPL: reported Q4 in AH, slightly beat estimates, MAC sale well above expectation but the Q1 outlook shy of the most optimic ones. Traded heavily mostly between 79.2 and 77.05, with clear support at 77, and resistance at 78.1 and 79.2. Key levels: 72.5, 73.1, 74.53 (close), 77 (AH support), around 77.5 (previous highs), 78.1 (AH resistance), 79.2 (AH resistance), 79.9 (AH high).

2. AKAM: S1 on rebound, entry zone 47-48.5, stop at 49. May also consider L1 on bottom when it approaches 42.6 use 42 as stop.

3. AKS: CTT-ready, S2 on top as it approaches 15.7, stop at 15.8, IT=14.

4. AMD: reported Q3 in AH, beat estimates, but profit margin drops, stock traded mostly between 23.5 and 20.7, closed around 22, key levels: 19.6-20, 20.7 (AH low), 21, 22.1 (AH close), 22.9, 24, 24.23 (close), 24.7 (MA50).

5. BIDU: CTT between 78.7 and 88.5, watch key support at 82. it probably will be affected by GOOG Q3 report.

6. CHAP: S3 on top, entry zone 40.8-41.5, stop just above 41.7, signs of top.

7. COST: L3 on bottom, entry zone 50-51.4, stop just below 50, IT=53

8. EBAY: reported Q3 in AH, beat estimates but not a whole lot of bright spots. Traded mostly between 28.6 and 29.5, and closed around 29. Key levels: 28 (MA50), 28.49 (close), 29, 29.35 (close), 29.5 (AH high), 30, 30.57 (recent high), 30-8-31.1, 31.8 (MA200), 32.


10. OS: S3 on top, entry zone 54.9-55.5, stop just above 55.8, IT=51.

11. SONS: L2 on bottom, entry point 1=4.95 (should stop once 4.9 breached), entry zone 4.8-4.9, stop just below 4.75.

12. UNH: L3 on pullback, entry zone 47-47.51, stop just below 46.9, IT=50.

13. X: S2 on top, entry zone 66.9-67.9, stop just above 68.6, IT= 61, signs of top.