Daily Calls -- Friday Jan. 26, 2007

Wow! Just when you think that bulls were in cruise control, the bears came out today and smacked down bulls pretty hard. Today's action erased all yesterday's gains of SP and DOW and then some, and NASDAQ was slightly better. Bearish engulfing candles formed on all major indices and lots of stocks, and just like that, things don't look bright for the near-future as far as bulls are concerned. The AH reaction to MSFT's Q4 report was favorable, but if MSFT cannot rescue the NASDAQ bulls tomorrow, things could become dire for bulls. I will only play key S/R with an overall neutral bias, unless NASDAQ breaks 2422 tomorrow on high volumes.

1. AAPL: CTT between 85.5 and 87.5/89 with tight stops, I may be attempted to go short if it breaks 85.5, but given how it behaved today and the oversold conditions, I may instead buying if it spikes towards 82.

2. BIDU: L3 at bottom if it spikes towards 120 with stop just below 119.5, IT=125.

3. DVN: speculative DT-L2 at bottom if it spikes towards 67 with a stop just below 67, MA50=67.7.

4. ENER: speculative DT-L2 at bottom if it spikes towards 32 with a stop just below, IT=34.

5. FFIV: L2 at bottom, entry zone 71-72.5 (100 share IE, 300 share FP), stop just below 71.

6. NTES: L2 at bottom, entry zone 19.51-19.81, IDS=19.3, CS=19.5, IT=22.

7. MSFT: reported Q in AH, traded mostly between 30.6 and 31.6, it quickly topped out in AH then declined steadily. Key S/R: 29.8 (MA50), 30.25, 30.45 (day close), 31.48 (day and 52 wk high), 31.6 (AH high).