Watchlist for August 3, 2005

I was surprised at how easily the Nasdaq got through 2200 yesterday. But no sooner than we break that resistance level another one pops up. Now everybody’s watching 1250 on the S&P 500. I won’t be surprised if it closes just under that level on Thursday just to add maximum drama to Friday’s jobs report. (Stephen Vita has a chart of the S&P showing the reverse head & shoulders pattern from which it just broke out.)

Looks like the Chinese internet stocks are the place to be today. See NTES, SNDA, SINA, SOHU, TOMO …

Potential swing trades:

Longs – None

Shorts – None

Potential day trades:

(From Briefing.com)

Gapping Down

Gapping down on disappointing earnings/guidance:
BRCDE -13% (also multiple downgrades), TECD -10% (also downgrades from BofA and Raymond James), ADI -3.6%, CPN -12%, SRTI -21%, IPXLE -9%, KND -8%, ALVR -7%, UTSI -7%, OVEN -6%, CNCT -4.5% (also CIBC downgrade), VPHM -4%, NAPS -3.7%, BEXP -3.7%, DUK -3.2%, CEPH -3%, NGEN -3%, WYNN -2.3%, TWX -1.6%… Other News: WZEN -10%, ELNK -7% (FCC may set new Internet rules for bells – WSJ ).

Gapping Up

Gapping up on strong earnings/guidance: NTES +24% (up in sympathy: SNDA +9.3%, SINA +7.5%, CHINA +6%, TOMO +5.4%, SOHU +4.2%, KONG +3%), GORX +39%, IVIL +14%, BMC +14%, RNWK +11%, OSUR +11%, DRYS +6%, SFY +4%, DVN +3.4%, IACI +3.2%… Other News: RBK +30% (to be acquired by addidas), PDLI +13% (announces collaboration with Biogen), RDCM +53% (to provide cellular network monitoring solution to a major US wireless operator), CLWT +59% (contract win), EELN +17% (to be acquired by Popular Bank), TRAC +17% (tender offer for up to 1 mln shares), MPET +16% (momentum), BMC +13% (Garban upgrade), VITX +6% (started with a Buy at Legg Mason; tgt $11), RNAI +4.6%, BHP +2.5%, BEAS +2% (SunTrust upgrade), SIRI +1.8% (Bear Stearns upgrade)…. Mad Money mentions: CLZR +7%, ELOS +7%, CUTR +4.4%, ECA +2.7%.