Monday, January 08, 2007

Daily Calls: Jan 9, Tues, 2007

Another choppy and indecisive session as the bulls came out with a small victory. I start to think maybe right now is the best time to stay on the sideline until NASDAQ either breaks the Nov'06 high or the MA50 around 2400. I probably also refrain from any swing trading here.

1. AAPL: let's see what kind of news will be out there tomorrow and what's the market reaction. DT-L3 (300 share, PL=$180, $0.5 stop) may be considered if it breaks 87 (IT=89.5). If the market sells on the news, watch the support around MA50= 83.9. No SW.

2. AFFX: speculative SW-S2 on top (300 share, PL=$150, $0.4 stop, RSK/RWD=1:5) if it spikes towards MA200=26.5 with a stop just above 26.85, IT=MA50=24.1.

3. SNDK: it started pretty strong but finished weak, nonetheless, it closed about the 4 wk trading range, is it on its way to test MA50 around 45.6?

4. VRTX: speculative SW-L3 (200 share, PL=$120, $0.5 stop, RSK/RSW=1:12) if it spikes towards 31.5 with a stop just below, IT=37,

Stocks that should be considered based on the weekly calls: ANF, BIDU, ENER, ESRX, NCTY, NVDA, SONS, WLT, XRTX.


Anonymous said...

Hi Man,

It is very difficult to trade in the directionless market. I expect that the market will stay in the range for a while. Below is my comments on your calls.

1. AAPl it can go either direction. I have bias on south side. Weekly dowing histogram supports that. Even if it goes up on good news, it seems unlikely to break 90. To me, shorting around 90 seems better than shorting it now.

2. SNDK Yes it is pretty strong now. I traded it several days ago. It turned out my timing was just not right. Both weekly and daily MA(10) are ticking up, so are their hostograms, which indicates that it is about to fly. However, current broad market may drag it down, at least prevent it from flying too high. So I guess it will meet strong resistance at 45.6. However, if the stock can close above MA(50) and the broad market is not too bad, it is still worth to buy.

3. VRTX It is clearly in down trend now. The right way is to short rebound. However, bottom fishing can be considered only if there is histogram bullish divergence in daily chart. It is very likely that we will see one in a week or so. Pay close attention to it.

4 BIDU I won't consider it as a swing long candidate at least for now. I am looking for a short opportunity around 130 instead. Ticking down weekly histogram is not a good sign for going long.

5. ESRX It is about ready to buy. The entry zone 66-67. Catch it when it walks into your entry zone.

6. WLT It is about ready to buy. I will buy on the first tick-up of histogram or buy if the price is above previous day's high.

7. STP It has been testing 35 three times. The fouth is on the way. If it can break, get in. What you think?

I would like to mention two stocks which ,I think , may be ready to buy tomorrow . TOMO and KONG.
The reason I didnt buy them today is because of stops. I won't risk too much. Lets see how they perform tomorrow.

Have a good trading day!


flyingwabbit said...

Hey, Man:

Some interesting development on several stocks you listed here, especially AAPL and ESRX, let's see how they move tomorrow. As for TOMO and KONG, it is still to early to go long, IMHO.

Good luck!