We had yet another distribution day yesterday as the Nasdaq joined the Dow and S&P 500 by closing under its 200-day moving average. The NDX/QQQQ got real close to its 200 DMA yesterday but managed to stay above it. So I think that line and yesterday’s low in the NDX will be key to watch. Here’s a chart of the Nasdaq:
Oil inventories are postponed until tomorrow due to the holiday on Monday.
Potential swing trades:
See one of the recent ‘Chart Reading‘ posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
AAPL -6.8% (beats by $0.01, but disappoints on iPod shipments; down in sympathy: PLAY -7.4%, SNDK -2.7%, GLW -1.9%), AMD -4.4% (beats by $0.01, but some see concerns for 2006; also, profit taking as stock is up 60% since May), VICL -17% (prices offering at $4.80/sh), RFX -8% (extends week-long selling), SKIL -4.7%, RNWK -2% (profit taking after 34% move yesterday), INTC -1.6% (in sympathy with AMD; Prudential downgrade)… Bird Flu stocks seeing some profit taking after huge moves: NVAX -6.1%, CRXL -2.7%, BCRX -2.1%.
Gapping Up
ICOS +13% (positive phase 2 clinical data), HDI +7% (reports Q3, beats by $0.06, reaffirms guidance, — also see Options Activity comment yesterday), FAST +6% (reports Q3), ENWV +5.4% (says it is unsure it will continue with offering), CESV +8%, JOSB +4.6% (to be added to S&P 600), PFE +5.3% (positive Lipitor ruling), VRTX +3% (Bear Stearns upgrade), ASML +2.8% (reports Q3), GM +2.1% (Deutsche upgrade), SU +1.7%, CHK +1.7%, RIMM +1.5% (stock buyback)… Under $3: USEY +102% (to acquire energy assets), ENMD +13% (clinical data).
Intraday Updates:
- 09:39 Looks like DNA wants to close yesterday’s gap
- 10:07 Once again the A/D line is negative so it’s hard for me to look at the long side here…
- 10:13 Hmm, AAPL is interesting right here — it’s testing 50, which should be resistance, right before the big “one more thing” announcement. Could be setting up for another disappointment…
- 10:17 The heaviness in the tape continues today. That little surge in the Nasdaq got stomped with a quickness. Even though, I see almost nothing that I’m willing to short given how oversold the market is.
- 10:30 Strike what I said about AAPL earlier, I had the time of the announcement wrong. But 50 shoul dstill be resistance…
- 10:58 The NDX (QQQQ) is now under its 200-day moving average. Welcome to bear territory!
- 11:50 A/D line is about 1 to 3 now. Tough to be long in this environment
- 1:16 Here’s the ‘big’ AAPL news (yawn!): From Briefing.com –13:12 AAPL Apple Computer introduces new iMac model, has video camera built in, thinner than last year’s all-in-one model – Bloomberg (49.13 -2.46)
- 1:31 iPod Video just announced… PLAY getting a little pop
Disclaimer & How I use this list
The APPL annc. is set to begin at 10 PST not Eastern. Thus, 1pm EST.
Thanks for the correction Shawn. Did you manage to hang on to it?
Looks like the bears are winning.
I still don’t think the market is that oversold yet.The dow ($INDU) isn’t even down that much,but I could be wrong.
Yes, MIke I sold half around 49.5 about 10:30 and the other half at 49.8 about 1pm “speculation” and went short with a daily high stop of 50.30. I figured that the gap was closed as much as it is going to and AAPL should resume back down to test lows. “Sell the news”