The Nasdaq and S&P did nothing but thrash around their 50-day moving averages on Thursday and Friday. I can easily see that type of (non) action continuing until Bernanke's testimony later in the week. So I'll continue to do less and focus on the really 'unusual suspects', as the Chairman would say.
Speaking of unusual suspects, the two that are on my radar in the pre-market are CMED and GOOG. On Google, it's now trading under $350 after the bearish Barron's article. So now all the gunslingers who rushed in to buy post-earnings miss are under water (assuming they held). Do they now become sellers or double down? I have a hard time chasing Google down right here after it's had such a slide but I will be watching how it acts at $350. My gut tells me that this Barron's drop will be faded, at least for a day or three.
Potential swing trades:
See one of the recent 'Chart Reading' posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
ELOS -5.7% (reports Q4), IIJI -4.7% (extends Friday's late sell-off), GOOG -4% (negative Barron's article), SBUX -2.7% (UBS downgrade), OMN -11% (extends last week's slide), RIMM -2.6% (Microsoft to challenge RIMM in push email), DNA -2.3% (halts cancer trial recruitment), CHK -2.1% (C.O.O. resigns), SYT -2.1% (profit taking after last week's strong move), AMR -1.8% (Lehman downgrade), AMKR -1.8% (profit taking after big move last week), ELN -1.5%, PFE -1.2% (hearing broker downgrade), AAPL -1.1%... Under $3: NYMX -34% (extends Friday's late sell-off).
Gapping Up
Gapping up on strong earnings/guidance: CMED +16%, ANR +6.7%, GILTF +5%, ENCY +4.2%... Other News: OPSW +14% (enters distribution agreement with Cisco - Reuters), IOTN +11% (LA Times article), IFS +7% (Mad Money mention), AIXG +4%, RELL +3.3% (Wm Blair upgrade), BCRX +2.9% (bird flu reports in Italy and Greece; also bounces after 20% drop last week), TASR +2.8% (Jefferies raises tgt to $12), CESV +2.8%, JBHT +2.6%, BOT +2.5% (Mad Money mention), SONS +2.4% (product announcement), WDC +1.5% (Matrix upgrade)... Under $3: GNBT +19% (completes positive pre-IND meeting with FDA for its Avian Flu vaccine), GNTA +5% (shareholder lawsuit dismissed).
Disclaimer & How I use this list
For GOOG, there is also the 200-day MA to consider at $333. Buyers should step in here, as this will be its first ever test of this average.
Best wishes,
DJF
Indeed. It also happend to coincide with the top of that October gap