Wednesday, January 24, 2007

Daily Calls -- Thur Jan 25, 2007

BULLS on the NASDAQ took over control today and along the way drove both DOW and SP500 to the new highs. Daily charts clearly favor further upside move, and with very positive reaction to EBAY's AH report, I think another bullish day is in store for tomorrow, and who knows, maybe even NASDAQ will break to the new high tomorrow. I will be extremely careful about any short-on-top setups, but SW-long setups should not be aggressively pursued as I have a hard time to find bullish catalyst that will further power the market up once the earning season is over.

Focus List:

1. EBAY: L2 on pullback, entry zone 32.8-33.3, stop just below 32.5. Reported Q4 in AH, market reaction was definitely positive. Key S/R: 31.6 (MA200), around 32.5, around 33.4, around 34 (recent and AH high).

2. FFIV: Reported Q4 in AH, drop to as low as 65.7 but recovered to as high as near 71, very volatile market reaction. Key S/R: 52.2 (MA200), 65.7 (AH low), around 70, 72.9 (MA50), 74.48 (day close), around 76. Consider S3 on top if it stays below MA50 around 73.

3. QCOM: reported Q4 in AH, traded mostly between 38.5 and 40.5. KEY S/R: 38.2 (MA50), 38.62 (day close), 39.5 (MA200 and AH resistance), 40, 40.5 (AH high), 41 (recent high).

4. AAPL: CTT when approaching its key S/R levels: 85.5, 86, 87.5, 90. Bias is neutral at this price level.

The rest:

1. ADBE: SW-S3 on top, entry zone 41.5-42.5 (100 share IE, 300 FP), stop just above 43, IT=38.

2. BRCM: S2 on top if it spikes towards 32 (MA50), IDS just above 32.5, IT=30.5.

3. LRCX: SW-S3 on top (100 IE, 300 FP), entry zone 48.9-50.7 (MA50), stop just above 51.

4. NTAP: S2 on top if it spikes towards 39 with a stop just above. MA50=38.7.

5. NTES: L1 on any pullback, entry zone 19.8-21, stop just below 19.71, IT=23.

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