Swing trade calls -- July 8, 2007

On the market:

The NASDAQ had a low volume break-out week while both SP500 and DOW are approach their early June high for the 3rd time. Bears would be in a new round of despair if SP and DOW join NASDAQ to break to the new high in the coming days, and that may be determined by the early tone of the Q2 report season. If the market reverses right now, bears may be looking at a triple top formation, however, unless the major indices do break their early-June low, bulls can continue enjoy their party.

On the overall trading strategy:

The safest is buy-the-dip, shorts may only apply to those whose Q reports greeted by negative reactions AND have subsequently been rebounding as the rising water lifting all the ships.

1. ADBE: S2 on top, entry zone=42.4-43, stop just above 43.3, IT=39.

2. ADI: speculative S3 on top if it spikes towards 40, stop just above 41.1, IT=36.5.

3. BBY: S1 on top, entry zone=49.4-50, stop just above 50, IT=47.

4. ILMN: L1 if it breaks 42, CS<42 with a bearish candle,IDS
5. LRCX: S1 if it breaks and closes below 50.6, stop around 52, IT=47.5.

6. NUE: S1 on top if it spikes towards 64 with a stop just above, IT=59/60.

7. WLT: CTT watch as it approaches 32.5.