Daily Calls -- Friday Dec. 22, 2006

The NASDAQ bears finally gained up hand today, dragging down both SP and DOW with it. The chip sector is on the verge of breaking down, and it that occurs, the NASDAQ is likely to at least test its MA50 around 2391. Before that happens, the major indices are still well in the recent trading range and bulls still have the reason to buy the dip. Since several tech names released good Q4 reports and had sizable gains in AH (RIMM, RHT, MU), let's see if they can lead the tech rebound tomorrow. Given the anticipated low volumes for the remaining of the year, the major indices are likely to be range bound before 2007, which means, trading with key S/R may provide the best bets.

Focus list:

1. AAPL: CTT between 82.2 and 87 use tight stops, try not trade the mid-range. MA10=86.4, MA50=84.1.

2. AFFX: S1 on top use 24.7 (MA10)/24.6(MA50) as stop reference, IT=21.75.

3. BIDU: CTT at 114 and 119.5 use tight stops, also consider S2 on top near 116/117/118. Be quick to take profits the CTT stops moving in anticipated direction.

4. CEPH: S2 on top if it spikes towards 71.1 (MA50) use 71.4 (MA10) as stop reference., IT=67.

5. RIMM: reported Q4 in AH, beat the estimates and raised guidance, traded mostly between 139 and 143.5, key levels: 139-140 (key support and solid AH support around 139.8); 142 (AH resistance), 143.66 (recent 52 wk high), 143.5 (AH high).

Keep an eye on list:

1. AKAM: L1 on bottom if it spikes towards 53, stop just below 52.7.

2. FMCN: L1 on bottom if it spikes towards 65.5, stop just below MA50=64.8.

3. SNDK: speculative L2 on bottom if it spikes towards 42, stop just below 42, IT=44.3.

4. SONS: CTT between 6.44 and 6.88 use tight stops, don't trade the mid-range.

5. STP: L1 on bottom, entry point1=near 32, entry point2=near 31.5, use tight stops.

6. X: Speculative L2 on bottom, entry point1=near 72, entry point2=around MA50=70.5, use tight stops.

7. ENER: L2 on bottom if it spikes towards 35, stop just below 34.9, IT=38

8. CTRP: L1 on bottom if it spikes towards 60, stop just below 59.9.