Tuesday, January 09, 2007

Daily Calls -- Weds Jan 10, 2007

Another choppy and indecisive day. The overall market volume increased but no clear direction. The only notable thing is NASDAQ continues to show relative strength, and inches closer to its recent high. Many stocks were quite volatile today with overall impression of bearishness except AAPL. It becomes important to stick to key S/R when entering any setups, and use smaller sizes.

1. AAPL: SW-L1 (100 share) on pullback use 89.5 -- 90 as the key support zone, entry zone 90-92, IT=99, $2 stop loss, RSK/RWD=1:4. DT-L1 (300 share) when it pulls back to 91/91.7 use $0.3 stop, If NASDAQ is strong, may also consider L1 when it breaks 93.2 with a stop just below 92.7. The huge spike in volume and simutaneous sell off in other smartphone makers (RIMM, PALM) suggests that the big boys really like the profit outlook of Apple iphone.

2. ANF: speculative SW-S2 on top (150 share) if it spikes towards 77 with a stop just above it, IT=71.5, RSK/RWD=1:12 or better, Potential Loss=$150 ($0.8 stop)

3. BIDU: DT-L3 (100 share, about $1.2 stop) on bottom if it spikes towards 122 use 121.5 as stop. Consider DT-L3 if it breaks 125 AND NASDAQ is strong, IT=127, stop around 124,

4. DVN: DT-L2 on bottom (200 share), entry zone 64.5-65.1, stop just below 64, IT=67, PL=$240, $1.1 stop, RSK/RWD=1:2. MA50=68.2. Looks like it is bottoming here.

5. ESRX: speculative SW-L3 on bottom (200 share) if it spikes down on market weakness, IT=66, entry zone1=62.5-63.1, stop just below 62 (PL=$150, $0.6 stop, RSK/RWD=1:5); entry zone 2=63.8-64.3, stop just below 63.8 (PL=$150, $0.6 stop; RSK/RWD=1:4). It closed the day just at the key support around 66, the candle formation and other technical indicators point more downside.

6. JCG: CTT (counter trend trading) between 35.2 and 39 use very tight stops, 200 share, PL=$100 ($0.4 stop). Bias on the short side. Don't trade the mid-range. MA50=36.5.

7. MRVL: L3 at bottom (400 share), entry zone 19.11-19.25, stop just below 19, IT=20.1, RSK/RWD=1:3 to 1:10; PL=$150 ($0.3 stop)

8. NTRI: SW-L3 on bottom if it spikes down towards 66 with a stop just below 65.5, IT=69. MA50=65.2

9. NVDA: SW-S2 (300-500 share) on top if it spikes towards 33.5/34 use 34.2 as stop, OR when it breaks 33 AND NASDAQ is weak; IT=31.5; $0.6 stop, RSK/RWD=1:4. It is poised to dive here. Strong support just above 31, so consider reverse to the long side with a stop just below 31.

10. RIMM: speculative L1 on bottom if it spikes down, entry zone 127-128.2, use MA50=126.5 as stop references. IT=134. It sold down hard on AAPL new IPHONE, but I feel it is a bit overdone.

11. SNDK: speculative L1 on bottom, entry zone 43.2-43.6, stop just below 43, IT=45. Because of its clear down trend, sellers are convinced that it has bottomed out.

12. SONS: L1 on bottom (1000 share, $0.1 stop) if it spikes towards 6.9 on market weakness, stop just below 6.88, IT=7.4.

13. X: DT-S2 (200 share) on top if it spikes towards MA50=70.9 use 71.1 as stop ($0.3 stop), IT=69. But consider DT-L1 (300 share) if it breaks 71 on AA's Q4 report, stop just below 70.9 ($0.4 stop), IT=73.


Bubs said...


Thanks for the comments on my
site. I will try and put the setups that I come up with before the market opens. Most of the setups I get are from a service www.highchartpatterns.com. I wouldn't feel right posting their setups until I actually trade them. Thanks again


shortswings said...

Hi Man,

Your were right on both TOMO and KONG. ALL stocks that I was going to LONG today went south, such as ERSX WLT TOMO KONG. The broad market was quite dramatic. APPL was the center of the show. Both RIMM and PALM suffered a lot because of iphone. Let 's see if appl can make a new high.

Have a great trading day!