Wednesday, November 29, 2006

Daily Calls Thursday Nov. 30, 2006

The bulls came out in full force today, and recovered about 50-60 % of this Monday's loss. It is obvious that the primary trend is still intact. The question now is if they can make a new high in December or it is going to be a test of top before an even larger pullback. I have a neutral view on the short-term trend of the market, meaning that I will consider both DT short-on-top and long-on-bottom at key S/R levels, but I will not long on break-outs or short on break-downs.

1. AAPL: DT-CTT between 93.2 and 89.5 use very tight stops. It gapped up in the morning on yet another upgrade, but sells came out in force.

2. AEOS: reported Nov. sale in AH, traded mostly between 46.1 and 46.8, with solid buying at 46.2. If it breaks 46 tomorrow, it may test MA50 around 45.2, in which case, consider L2 on bottom when it approaches key support around 41.8, 43, 44.5. Also, consider S1 on top if it cannot break 48.

3. ANF: S2 on top if it spikes towards MA50=71.5 with a stop just above 71.7.

4. BIDU: DT-CTT between 103 and 115 use tight stops. the bias is on the long side.

5. BRCM: DT-L1 on bottom if it spikes towards 31.5 (MA50 and MA200), stop just below 31.2.

6. DVN: L1 on pullback if it spikes towards 71.4, stop just below 71.

7. ERTS: DT-CTT between 55.5 and 58.2 use tight stops.

8. LRCX: DT-L1 on bottom if it spikes towards 50, stop just below MA50=49.9.

9. RACK: DT-L3 on bottom if it spikes towards MA50=32.2, stop just below 32.

10. SONS: DT-CTT between 6 and 6.4 use tight stops, bias is on the long side.

11. TIBX: SW-S1 on top, entry zone 9-9.4, stop just above 9.5, IT=MA200=8.3. Looks like it is really topped out.

12. WLT: DT-L1 on pullback, entry zone 44. 2-45, stop just below 44.

13. SNPS: reported Q3 in AH, beat the estimates and raised guidance, traded mostly between 24.8 and 25.8, with solid support around 25.25. Key levels: 23.24 (today's high and new 52 wk high), 24.7, 25.25, 25.8 (AH high).

2 comments:

shortswings said...

Hi man,

I missed WLT yesterday, which made me mad. However, I did bought in 500 shares of CELL right before market close. I should have entered at 13.40, which is MA(50). Now I payed over price. Im now cross the figures and hope it will go up tomorrow. I havent put a stop yet. Since bought at hight, I have difficult to decide where it should be. I need your advice on that!

Thanks

shortswings

flyingwabbit said...

Judging from today's volume and candle formation, CELL has a pretty strong momentum, and if the overall market rises strongly tomrrow, it should have no problem busting through $14 and even test 14.8-15 zone. Keep in mind that this is a down-trend stock, therefore may not be a good candidate for swing trade. In terms of stop, you may consider CS around 13.25, and IDS just below 13. Be nimble, you might want to take partial profits if it gaps up and spike in the opening moments...

Good luck,

FW