Yesterday’s action created a lot of bearish candlesticks, especially shooting stars. I was tempted to hit the ‘liquidate all’ button in the afternoon but I decided to just push my stops up a bit more instead. Early in the day I saw a note about the SOX hitting its 200-day moving average. I said to Duru, half jokingly, that this would be a perfect place for the rally to stall. It looks like that’s exactly what happened. I don’t know how concerned to be about it since I wouldn’t expect the SOX to make it through that moving average on the first attempt. I’m certainly going to keep my eye on the SOX though.
Coincidentally, while the SOX was toying with its 200 DMA, the Naz unsuccessfully tested 2100 — those are two levels to watch…
Update: I’m always talking about the games that take place during expiration weeks. Here’s today’s example (from Briefing.com):
09:24 Bin Laden capture rumor out again… initial feedback: “hedge fund plant, options expiration is on Friday”
Currently holding:
Long – MACR, PLMO, SWFT, WBSN
Short – none
Looking for swing trade entries in:
Longs – BMET, ESRX, USG
Shorts – FBR
Potential day trades:
(From Briefing.com)
Gapping Down
AMAT -3.6% (reports OctQ, light on revs, weak order guidance), MDT -5% (multiple downgrades after co reports OctQ), CLE -12% (misses by $0.02; guides below consensus), MGAM -11% (beats by $0.02; guides below consensus; Roth downgrade), NABI -10% (market disappointed by Altastaph Phase II trial results), PACT -7.2% (profit taking after 82% move yesterday), TTEK -4.6% (reports SepQ; guides below consensus), XMSR -3% (to offer $300 mln convertible notes), SIRI -3% (cut to Sell at BofA), WSM -2.6% (reports OctQ, guides lower), SOHU -2.2% (COO resigns), GOOG -2.2% (cautionary S-1 comments)…. Under $3: POCC -19% (auditor says survival is in question), DYTK -8%.
Gapping Up
NFLX +16% (raises guidance, says sub growth is exceeding earlier expectations), INGP +14% (NY Times says co is for sale), ATGN +19% (reports SepQ), SFLK +18% (to become security subcontractor), EMIS +13% (signs licensing agreement with Roche), MSO +8% (momentum from Sears/Kmart), SOSA +5.9%, AIRT +5.7% (rebound after yesterday’s plunge on auditor change), WSII +4.8% (announced late yesterday that exec VP bought 303,900 shares), INSP +4.4% (Piper says it would be aggressive buyers at current levels; Raymond James upgrade — after downgrading on Tuesday), MO +1.9% (two upgrades: Goldman and Prudential), CHIR +1.9% (two upgrades: Piper and Smith Barney)…. Under $3: CRDM +46% (announces 70% success rate in treating atrial fibrillation), TGAL +21% (receives order from European analog manufacturer), FLYI +7.3% (recent momentum).
