Tuesday, November 14, 2006

Daily calls Nov. 15, 2006

The sudden and sizeable jump in all major indices late this afternoon completely surprised me, which obviously indicates that my assessment of the short-term market movement is flawed. Even if it is largely a technical move after SP500 broke into new high, the lack of selling shows the strength of the bulls. I need to learn how to take the advantage of the current trend, fighting against this trend at any level, shape or scale becomes a very risky business.

1. AEOS: DT-L1 if it spikes down towards 47, stop around 46.8. However, consider building short position on top in the range between 48 and 50 with a stop just above 50.

2. BIDU: DT-L2 if it spikes down towards 98.5, stop just below 98.

3. CHAP: SW-S1 on top, entry zone 42-43, stop around 43.3.

4. ERTS: DT-CTT between 57 and 58.8 use tight stops.

5. ESRX: DT-S1 on top around MA50=70.1 or MA200=74.2 use tight stops.

6. FFIV: DT-S1 on top, entry zone 73-74, stop just above 74, IT=69.6.

7. LRCX: DT-L2 if it spikes down towards 53.3, stop just below 53.

8. MU: consider DT-S1 if it spikes towards MA50=15.3, MA200=15.4, stop just above 15.5, IT=14.5.

9. OS: DT-S1 if it spikes towards 59, use 59.1 as stop, IT=55.

10. SNDK: DT-S1 on top if it spikes towards 48/48.8, use very tight stops.

11. UNH: SW-S1 on top, entry zone 48-48.9 (MA50), stop just above 49.

Earning Plays:

1. ANF: reported Q3 in AH, beat the estimates, but outlook not raised, traded mostly between 72.7 to 75, and closed around 73.7, with AH resistance around 74.25. Key levels: 69, 70.82, 72 (MA50), 74.29 (day low and AH resistance), 75, 76.6 (close), 77.

2. ADI: reported Q3, profit beat, rev met, and raised guidance of current Q, traded mostly between 34.7 and 35.2. Key levels: 32.8 (MA200), 33.03 (close), 33.5, 34.7 (AH support), 35.2 (AH resistance), around 36.5.

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