Watchlist for February 22, 2005

We’ve got weak futures this morning on a weaker dollar and rising oil prices. It appears that the S&P will gap down very close to its 50-day moving average and the Nasdaq will break its short-term uptrend on the open. I think that how the S&P acts at its 50 DMA will be key. There are many long candidates on my list today but, given the weak futures, I’m not expecting many of them to trigger, at least not early in the day. As always, we’ll see…

Currently holding:

Long – AEOS, BSTE, PARL

Short – None

Looking for swing trade entries in:

Longs – ACE, AIG, APCC, BOL, CMTL, FLSH, IFIN, MACR, MATK, MFLX, RYAAY, TK, UNFI

Shorts – ASKJ, NFI, SNIC

Potential day trades:

(From Briefing.com)

Gapping Down

Gapping down on disappointing earnings/guidance: HELE -10.6%, FOSL -7.6%, EASI -4.7%, SOSA -3.5%, PRTL -13%… Other News: SIRI -4.3% (Stern Guest Subpoenaed in Probe of Sirius — AP)…. Under $3: WIN -39% (files for bankruptcy), REAL -15% (to delist from Nasdaq), LOUD -7.7% (discussed negatively in Barron’s), SYNC -7.1%.

Gapping Up

SINA +19.5% (Shanda Buys 19.5% Sina Stake, May Seek Control of Web Firm — WSJ; SINA adopts poison pill; NTES +4.2%, CHINA +3.8% up in sympathy), ELAB +10.1% (Novartis to acquire Eon Labs), SOHU +7.8% (in sympathy with SINA; also repurchases 885,605 shares), AGIX +5.5% (receives FDA approval), KMG +4.9% (Goldman upgrade), CRYP +4.4% (Barron’s cover story discusses online gambling), RIO +3.5% (sets iron ore prices with Nippon Steel), RMBS +2.5% (says it gets favorable ruling)… Drug stocks higher on M&A talk/Vioxx news: NVS +3.5% (to buy ELAB), AZN +4.4% (mentioned in WSJ article: Drug-Industry Deal in Japan May Stimulate Wave of M&A), GSK +4.1%, SNY +3.8%, SHPGY +3.3%…. Gapping up on strong earnings/guidance: BOOM +18%, UTHR +11%, JAKK +9.5%, NSI +8.9%, BFLY +9.6%…. Other News, Under $3: AEGN +37% (receives FDA fast track designation), FLYI +33% (announces completion of financial restructuring), XOMA +9.5%, LVLT +5.2% (terminates poison pill).

Disclaimer & How I use this list