Here we go again. The futures are getting clocked thanks to Apple and another round of rumors & worries about bank write-offs. I figured yesterday's lows would have to get retested but I didn't think it would be this quick. There's no gap fade in my plans today. Maybe I'll do some buying if it looks like it's going to be one of those days where they crush them in the morning and rally 'em back in the afternoon. Anything other than that and I'm not interested.
Here are some more of the requested charts from yesterday. I'll do some more tonight or tomorrow morning:
Retail was one of the better performing sectors yesterday. I guess they've gotten to the point where they're getting sold out. Here's the retail ETF, RTH:
Financials have a similar story. Here's XLF, the Financial Sector ETF:
I think this is the first time I've looked at Citigroup's chart since it's troubles began. I was shocked at how bad the chart looked. It's interesting to note that it bounced off of the 2002 lows yesterday.
Here's GLD, the Gold ETF, of which I'm still long. Buy gold & head for the hills! ;-)
Here's Solarfun Power Holdings Co., Ltd. (SOLF) -- China and solar in one shot.. double your pleasure, double your fun? It's now given back all of its breakout to new highs. There should be a lot of motivated, underwater, sellers in this now. There will be even more if it slips below the lines I've drawn on the chart:
Microsoft Corporation (MSFT) looks like it's having a pretty contained & normal looking pullback.
And here's Research In Motion Limited (RIMM). Some basing between 80 and 100 might do the stock some good.
On Today's Calendar:
- nothing
More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic
Potential swing trades:
See one of the recent 'Chart Reading' posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
In reaction to weak earnings/guidance: FCFS -21.9%, MOT -14.8%, ACF -13.4%, PLT -12.3% (also downgraded to Neutral at Baird), AAPL -11.3%, MOSY -11.0%, GD -10.8%, AEIS -9.3%, PKG -7.7%, HOKU -7.0%, PETM -6.7% (also downgraded to Mkt Perform at Wachovia), CNH -6.1%, FCX -5.5%, SUPX -5.5%, SLM -5.3%, WLP -4.8%, PCBK -4.3%, PX -3.6% (also initiated with Hold at Standpoint), STM -3.3%, RES -3.2%, ABT -2.6%, COP -1.9%, PHHM -1.8%, COH -1.8%, TXN -1.7% (also downgraded to Hold at Citigroup), NSC -1.5%, MKC -1.5%, WASH -1.1%... Select technology stocks showing weakness in sympathy with AAPL and MOT earnings: NOK -6.3%, SNE -6.1% , VOD -5.9% , RIMM -5.6% , GOOG -3.1% (also UBS is cautious on the quarter, but remain believers in the longer-term)... European banks under pressure with rumors of a writedown at Societe Generale: DB -5.1%, BCS -3.1%, CS -3.0%... Other news: MTG -23.4% (announces year-end 2007 delinquency inventory), DAI -6.2% (still checking), BP -4.8% (trading lower with weakness in overseas trading), SPWR -3.7% (announces triggering event for convertibility of senior convertible debentures due 2027), NCC -3.1% (announces a $1 bln convertible notes offering pursuant to an effective shelf registration statement), KO -1.3% (Suntrust may raise $1bln by selling KO shares-- Bloomberg)... Analyst downgrades: PKG -9.7% (hearing removed from Conviction Buy List at tier 1 firm), BTU -6.9% (downgraded to Neutral at BofA), TNE -5.6% (added to Navellier new sell list), CDNS -3.8% (downgraded to Neutral at JPMorgan), MENT -3.8% (downgraded to Underweight at JPMorgan), ACI -2.7% (downgraded to Neutral at BofA), TRA -2.1% (added to Navellier new sell list).
Gapping Up
In reaction to strong earnings/guidance: CHKP + 4.6%, PMTC + 4.5%, BKI + 4.5%, SPSN + 3.7%, PFE + 3.0% (also buy back up to $5 bln of common stock), MBTF + 2.0%, IBKC + 1.9%, AIT + 1.9%, BANR + 1.8%, CNB + 1.7%, WAL + 1.7%, ACAT + 1.6%, DOX + 1.2% (also hearing added to Conviction Buy List at tier 1 firm)... Other news: COCO +11.3% (rebounding after yesterday's 27% decline), SWHC +5.0% (rebounding slightly after yesterday's decline), CYD +2.1% (announces that the Audit Committee has concluded its independent inquiry), IPCS +1.4% (announces subscriber activity for the quarter ended Dec 31, 2007; gross additions of approximately 63,800)... Analyst upgrades: CHU +1.8% (hearing upgraded to Buy at tier 1 firm), MU +1.6% (upgraded to Equal Weight at Morgan Stanley), MCHP +1.5% (hearing upgraded to Buy at tier 1 firm), LLL +1.4% (upgraded to Outperform at Friedman Billings), HTLD +1.1% (upgraded to Outperform at Wachovia), MEMS +1.0% (initiated with Buy at Jefferies).
Disclaimer & How I use this list
Whenever the market has stretched in a given direction as far as I think it will go, I tend to wait another 24 hours to see what the next day brings. More often than not, things seems to stretch that much further. I'm guessing its a function of forced selling due to margin calls - regardless, waiting that extra day has helped flip most of my trades from a position of uncertainty to a comfortable and boring ride. Now if only there were shares of QID to short (not all double negatives are improper).
Carey,
You don't have to short QID. Buying QLD is the same as shorting QID.
Only difference is if I dip into margin, it cost me nothing when shorting - guess that's why I like shorting stocks. I'm a cheap bastard.
Mike, looks like you got your afternoon bounce.
One for you Dow Theory folks: earlier this morning when dow/naz/sp500 were still deep in the red, the transports were up 2 percent.
That along with the bounce in the financials was like a flashing green light.
i would like to know how to pick great etf's. i am new at this. i would definitely appreciate any knowledge that's available to me. thank you joe jackson