Thursday, November 30, 2006

Daily Calls Friday Dec. 1, 2006

The bulls was smelling another victory after grinding out the bears all day long, then, in the last 30 min, all the sudden, sellers came out in force and erased all the gains. Overall volumes were a bit higher than the previous 2 days, and I sense a lot of churning going on today. The market is at a critical point, basically, if it heads down tomorrow, it may start another leg down. One notable thing is that the top for the retailer sector got another confirmation today. Active short-the-rebound of this sector should be considered in the coming days.

1. AAPL: DT-CTT between 89.5 and 93. I sense the distribution is going on here, maybe all good news are already priced in. If it breaks 89.5 on strong volume, a DT-short position should be considered.

2. AEOS: SW-S1 on top, entry zone 45.7-46.5, stop just above 47, IT=43.

3. ANF: CTT between MA200=64.8 and 69/70 use tight stops, bias on short side.

4. BIDU: DT-L1 on pullback when it approaches key support levels: 103, 106, 109, 110.5, 112, 114. Its high at 117.16.

5. BRCM: DT-L3 if it spikes towards 31.5, stop just below 31.2. Both MA50 and MA200 converge around 31.5.

6. DVN: DT-L1 on pullbacks, entry zone 71.5-72.21, stop just below 71.5.

7. LRCX: DT-L2 if it spikes towards MA50=50, stop just below 50, IT=51.5

8. SONS: CTT between 6 and 6.4 use tight stops, bias on the long side.

9. TIBX: S2 on top, entry zone 9.41-9.69, stop just above 9.7.

10. WLT: DT-CTT between 46.5 and 49.6 (MA200) use tight stops.


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