Thursday, October 26, 2006

Daily Calls, Thursday, Oct. 27, 2006

The NASDAQ finally made a new high today, and SP500 made the elusive 6yr high. Now I expect the market will rise further on NASDAQ’s strength, however, I am unsure how far it would go given that the market has been entrenched deeper in the over bought territory. At this stage, no swing short positions should be opened.

COST: watch as it approaches key resistance around 54.5, which probably is a shortable day-trading plan.

NCTY: S1 on rebound, entry zone 23.8-24.6, stop just above 25, It=22.5.

NTRI: S2 on top, entry zone 65-66, stop just above 66, IT=61.

SINA: L1 on pullback, entry zone 25.6-26.1, IT=27.5, stop just below 25.5.

SNDK: S1 on top when it approaches 52 or when it breaks 49.6, IT=47.

TIBX: L2 when it breaks 9.5 with a stop just below 9.4. IT=10.

TXN: S1 on top, entry zone 31-31.7, stop just above 32, IT=30.

YHOO: S2 on top, entry zone 25.5-26.5, stop just above 27. MA50=25.9.

AKAM: Game plan: L2 either when it approaches the AH low (44) use a tight stop, OR when it break AH high (50.1). S2 on top might be considered when it approaches 52/53 use tight stop. reported Q3 in AH, beat estimates and raised guidance, but still seem disappointing. Traded between 44 and 50.1, but mostly between 46 and 49.3, with solid support at 47 and 48, and resistance at 50. Key levels: 44 (AH low), 45.7 (MA50), 48, 49.83 (day close), 50, 51, 52,

FFIV: consider S2 on top when it approaches 68 with a stop just above 68., IT=65.5

OS: reported in AH, pretty strong number, keep an eye on it and other steel sector stocks to get a sense how much higher can they go>

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