Monday, November 20, 2006

Daily Calls, Tuesday, Nov. 21, 2006

The market certainly acts like invincible, the sizeable losses in oversea markets did not do much at all. The chip sector was particularly strong, whick made a new 6 month high and probably responsible for the NASDAQ gain. It appears that shorting chip stocks will be a very risky thing to do for the next few days.

1. AEOS: S2 on top only if it spikes towards its 52 wk high around 49.5 use a tight stop. It continues to out-perform the sector.

2. AKAM: S2 on top only if it spikes towards 52 with stop just above 52.

3. BRCM: may consider speculative S3 on top, entry zone 39-40, stop just above 40, it rises too much in too short time period.

4. CHAP: CTT between 43 and 47 use tight stops, don't trade mid-range.

5. MRVL: L1 on pullback, entry zone 20.11-20.51, stop just below 20. MA200-21.3.

6. SNDK: CTT between 47.8 and MA50=50.8/MA200=52.2.

7. SONS: will it finally break 6?? L2 on dip if it spikes towards 5.5, stop just below 5.5, IT=6.

8. X: CTT between 70.4 and 76 use tight stops, don't trade mid-range, looks like the rumor is running out of steam here.

Earning play:

1. FMCN: reported Q3 in AH, beat estimates and upped guidance, traded between 61.6 and 64.6, but mostly between 62.8 and 64. Key levels: 58.3 (MA200), 59.86 (close), around 60.1, 62.35 (day high), 62.8 (AH support), 64 (AH resistance), 64.6 (AH high), from 66-67.5.

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