Sunday, April 20, 2008

Weekly Trading Calls -- April 20, 2008

Overall Trading Strategy for the Next Week

For the reasons I stated in my “Weekend Notes on the Market”, while technically it may be the time to trade from the long side for the next few weeks, entry on the pullback makes more sense, which could occur early next week.

1. AAPL – ER on April 23
Last Friday’s action completed the “cup-n-handle” formation, but its ER could smash this nice cup or make it into a text book example. I am expecting it to either test 175/180 or 145/140 after its ER.
** Might consider a small option play right before the ER, still undecided on which direction to bet on, but if it spikes towards 175 or higher before ER, might consider 150/160 puts.

2. BIDU – ER on April 24
** Might consider a small put position right before ER IF it spikes towards 380.

3. GS
For the first time, it closed above the well-defined 6-month long downtrend channel that started last Nov.
** SW-S3, ez=170-173, IDS just below 170, CS just below 171 with a bearish candle, IT=190/MA200

** SW-S1, ez=295-310, IDS just above 316, CS just above MA50 with a bullish candle, IT=MA200 (near 267 now)

** CTT between 71/MA50 and 95/100, don’t trade the middle range.

6. WLT
** SW-S3, ez=70-72, IDS just above 73, CS just above 72 on bullish candle, IT=62.

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