Looks like the market will gap up a bit this morning. I think the most important level to watch today is 1,200 on the S&P 500. Its 200-day moving average is right at 1200 now and those round numbers are usually psychological support/resistance.
FYI: The minutes from the September Fed meeting are being released today at 2 PM...
Potential swing trades:
See one of the recent 'Chart Reading' posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
Gapping down on disappointing earnings/guidance: HELE -13% (also Wedbush Morgan downgrade), SWKS -13%, SGTL -8.2% (also Needham downgrade), DENN -7.4%... Other News: TAYD -5.4% (profit taking after 17% move yesterday), ENWV -3.9%, DCN -3% (extends yesterday's 34% drop), NVAX -2.4% (profit taking after 18% move yesterday), OSIP -1.5% (DNA's Tarceva sales; Bear Stearns downgrade).
Gapping Up
RNWK +35% (near a settlement with MSFT - WSJ), DNA +5.7% (reports Q3), VRSN +5.6% (sells its payment gateway biz to eBay), FAL +12% (to be acquired), IDNX +7% (receives initial order from a contract), RFX +6% (bounces after 45% drop yesterday), WPCS +5% (new contracts), GMR +4.7% (Mad Money mention), INFY +4.2% (beats by $0.03; guides above consensus), SCMR +4.1% (reports JulQ), IMCL +3.5% (UBS upgrade), CYBX +3.4% (started with a Buy at Jefferies; tgt $40), AA +3.4% (reports Q3), ERTS +2.5% (Citigroup upgrade), MCD +2.5% (UBS raises tgt to $43)... Bird flu stocks strong again: HEB +4.7%, BCRX +3.1%... Energy stocks regain momentum: NGAS +3.6%, ECA +1.4%, CHK +1.4%, VLO +1.4%... Under $3: DPH +15% (up in sympathy: F +7%, DCX +1.9%, GM +1.2%), GENR +17% (clinical data), AATK +10%.
Intraday Updates:
- 09:36 DNA has my attention. It's close to confirming a W bottom on the daily chart. (I'm watching AMGN too)
- 09:53 I like this action in FFIV... beautiful setup on the daily chart
- 10:06 nice recovery from yesterday's slide for ERTS.
- 10:08 Watching INFY for a dummy spot as it bounces off of 75
- 10:56 The opening gaps on the indices are getting closed. The million dollar question is will they now bounce or keep sliding...
- 1:53 Just a few minutes until the Fed meeting notes are released. brace yourselves... :-)
Disclaimer & How I use this list
Can you explain the setup you see on FFIV's daily chart? Are you saying the gap up this morning could signal it moving back up toward the late Sept. highs?
Chud,
The setup looked a lot better tis morning when i wrote that note. I liked the fact that it was trading above the candles of the previous 3 days and the 50 DMA. Doesn't look so hot any more.
Mike, you should revisit our debate regarding INTC-vs-AMD.
The conclusion: Trader Mike rules. One Way Stox drools.
how do you figure that? So far short AMD long INTC is beating the opposite pair trade, even with the after-hours move in AMD.
...although I did state that AMD could use (or easily have) a pullback from where it was. :-)
Mike, Any thoughts on how to best deal with being long AAPL? Sell AH or set stop at 5 min low at open or wait until after Jobs video IPOD? annc. at 10:30 and set stop at daily low or sell double and thus take a short position? Any input is appreciated.
Shawn,
Hard to say. I guess it depends on how risk averse you are. You've listed some good options. I've also read about (I think this was from Oliver Velez) setting a stop at the 10:00 low and then pushing it up as the day goes on. With that 10:30 announcement maybe you want to wait that out. Of course the danger is that many people may be doing the same thing and if that announcement is a let-down...
You could also scale out. Sell half early and hold the rest into the announcement.
Good luck with it.
One Way Stox,
Wow, I'm just now noticing what happened to AMD today. Now short AMD, long INTC looks even better -- even though INTC is down too.