Daily Calls Jan. 5, Thur 2007

What a day, it must be quite a scary for the bulls, but bears were not exactly holding the upper hand as bulls fought back in the end to make the first trading day of 2007 an up day. Right now I don't see any convictions either way, I wonder if the picture will get much clearer in the next 2 days. In the meantime, swing long/break-out long should be avoided, and short-on-top setups should be seriously considered.

1. AAPL: DT-S2 on top when it approaches resistance around 85.4 and 86.6 use tight stops.

2. AEOS: it reported Dec sale in AH and raised the Q4 guidance, traded between 31.8 and 32.4. Probably should L2 on bottom if it spikes towards 31 use MA50=30.9 as stop reference. IT=33.01 (all time high).

3. AKAM: DT-S2 on top if it spikes towards 52.7 use 53 as stop, IT=MA50=51.

4. BIDU: L2 on bottom if it spikes towards 117 with a tight stop. May also consider speculative S3 on top if it spikes towards 125.

5. DVN: DT-S2 on top if it spikes towards 66 use a tight stop; its firt test of MA200=64.4 was successful, keep an eye on it. Speculative L2 on bottom near 61 or 63 might be considered.

6. ESRX: L3 on bottom if it spikes towards 68 use a tight stop, IT=MA10=71.5.

8. LRCX: CTT between MA200=46.1 and 51.5 use tight stops, don't trade the mid range.

9. MEDX: L2 on bottom if it spikes towards MA50=13.9, stop just below 13.5.

10. NTAP: L2 on bottom if it spikes towards 39 use MA50=38.8 as stop, IT=41.

11. RIMM: CTT between MA50=125.1 and 132 use tight stops.

12. SNDA: L2 on bottom, entry zone 19.5-20.1, stop just below 19.5,

13. SONS: L2 on bottom if it spikes towards 6.9 with a stop just below 6.88.

14. UNH: L2 on bottom if it spikes towards 50 with a stop just below. MA50=50.2, MA200=50.1.

15. VRTX: speculative L3 on bottom if it spikes towards MA200=35.6 with a stop just below.

16. WFMI: S1 on rebound if it spikes towards 46.7 with stop just above 47. It is poised to dive here.

17. JCG: L3 on bottom if it spikes towards MA50=36.3/35.5 use tight stops, IT=39.