Swing trade calls -- June 16, 2007

On the market:

Looks like my previous predication of a top is falling apart. The strength and extent of the rebound exceeds a little bit of my expectation, and I must say that I am amazed to see how the market ignores the bad aspects while intensively focuses on the good aspects of any inflation report. However, I find it very hard to find the reasons that the inflation will stop rising, on the contrary, I think the non-core inflation, which the Wall Street has completely ignored so far, will gradually drive up the overall inflation, and that is only a matter of time. I still think the the cross over of 5% of the 10 year bond yield is a very significant event. The market will most likely consolidate at the current level until the Q2 report season kicks in in 3 weeks, which may dictate the next meaningful move of the major indices.

On what small players should do right now:

If you are not a trend decider, you must either follow the trend or just sit out. Don't fight the trend or you will be punished!

The bottom line is that the easy money on the long side has been made. Going long near the current high does not have a good risk/reward ratio, buying the dip use MA50 as stop reference is probably the safest way to approach the market right now.

1. AAPL: S1, entry zone=124-127, stop just above 127.7, IT=110.

2. ADBE: S1, entry zone=43.3-44.5, stop just above 45, IT=41.

3. AKAM: S2, entry zone=51-53, stop just above 53, IT=46.5

4. COH: S1, entry zone=51-52, stop just above 52, IT=47.

5. ERTS: S1, entry zone=51-53, stop just above 53, IT=49.

6. ILMN: L1, entry zone=36.3-38, stop just below 35.5, IT=42.

7. NUE: S1, entry zone=64.5-67, stop just above 67.5, IT=60.

8. NVDA: L1, entry zone=37-39, stop just below 37. IT=41

9. RACK: L1, entry zone=12.1-12.6, stop just below 12, IT=13.5. OR when it breaks and closes above 14.3, IT=16.8.

10. SNDA: L1, entry zone=27-27.6, stop just below 27, IT=30.6

12. SNDK: L1, entry zone=44-45.5, stop just below 44, IT=50.