Wednesday, December 20, 2006

Daily Calls -- Thurs Dec. 21, 2006

Once again, the market gaped up at the open,only to sold down throughout the day. It appears that the NASDAQ bears are holding on well despite the unfavorable seasonality pattern. It might be time to actively seek short-on-top setups with very good risk/reward ratios.

1. AAPL: S1 on top when it spikes towards key resistance levels: 87.1 (MA10), 89.3 and 90.

2. AEOS: CTT between 29.5 and 31.5 (MA10) use tight stops, bias is on the short side. MA50=30.8.

3. BIDU: CTT between 114 and 121, keep eyes on key support around 105.5, 116.5, and resistances around 117.8, 119.5, and 121.

4. CHAP: CTT between 42 and 45.5 use tight stops, bias is on the short side. MA50=43.5.

5. ESRX: L2 on bottom, entry zone 72 - 73.3, stop just below 72.

6. SNDK: CTT between 42.2 and 44.4 use very tight stops.

7. SONS: S1 on top if it spikes towards 6.85, stop just above 6.9; L1 on bottom if it spikes towards 6.2/6.3 use tight stops.

8. STP: currently long at 33.03, stop 1 just below 32.8, stop 2 around 32.3. L2 on bottom from 31.5 to MA10=32, stop just below 31.5.

9. UNH: L1 on bottom, entry zone 53.3-53.6, stop just below 53.

10. YHOO: S1 on rebound if it spikes towards 26, MA10=26.5, MA50=26.6, IT=24. It is breaking down here.

11. COGN: reported Q4 in AH, beat the estimates and raised guidance. Traded between 40.7 and 43, but mostly between 41-42.5. Key levels: 39.7 (MA50), 40.7 (AH low), 41.84 (day close, also MA10), 42.37 (day high), 42.5 (AH resistance), 43 (AH high), 43.55, 44.19 (52 wk high).

2 comments:

shortswings said...

Hi Man,

NASDAQ clearly showed its weakness today, but still well in its range. I expect it will stay there for a while. Below is my comments on your calls.

1. Agree with your short plan. But how about long tomorrow if it spikes down to 83?

2. Bidu, my bias is toward LONG now. Short if it approaches to 125.

3. STP, Weekly chart showed that it is clearly in up trend. However, the daily histogram showed a possible bearish divergence. Under current broad market condition, I doubt that it will make new high. But because it is traded in NYSE, expect unexpectable.

4. YHOO, It looked like broke down right here. Short rebound make sense, but only for day trade.

Have a great trading day!

shortswings

shortswings said...

Hi Man,

NASDAQ clearly showed its weakness today, but still well in its range. I expect it will stay there for a while. Below is my comments on your calls.

1. Agree with your short plan. But how about long tomorrow if it spikes down to 83?

2. Bidu, my bias is toward LONG now. Short if it approaches to 125.

3. STP, Weekly chart showed that it is clearly in up trend. However, the daily histogram showed a possible bearish divergence. Under current broad market condition, I doubt that it will make new high. But because it is traded in NYSE, expect unexpectable.

4. YHOO, It looked like broke down right here. Short rebound make sense, but only for day trade.

Have a great trading day!

shortswings